Residential Product Bulletin

3rd Quarter 2020

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Overview

RCT Express® Product Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the residential building industry. A few of this quarter’s highlights are:

  • From Q1 2020 to Q2 2020, the average for U.S. building materials increased 0.5%. For labor, the average wage rate increased 0.9%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 0.7% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.2%.

United States Canada
Quarter Year Quarter Year
Aluminum Conduit -0.2% 1.8% 0.9% 4.9%
Asphalt Shingles 0.5% 2.5% 0.2% 4.5%
Concrete Block 0.6% 2.9% 0.1% 2.2%
Drywall 0.0% 0.2% 0.3% 2.0%
Felt Paper 0.2% 0.5% 1.1% 5.2%
Galvanized Pipe 0.3% 2.1% 1.8% 6.8%
Lumber 3.3% 0.5% 2.0% -4.6%
Plywood 1.4% -7.7% -1.3% -7.7%
Ready Mix 0.9% 3.4% 2.1% 4.7%
Rebar -0.3% 0.6% -0.7% -4.5%
Steel Deck 0.3% 0.8% 0.7% 4.2%
Steel Stud 0.8% 2.5% 0.6% 3.1%
Structural Steel -0.8% -3.2% 0.5% 1.9%
1/2″ Copper Pipe -0.7% -2.9% 1.2% 4.7%

National Average

Residential Reconstruction Costs 2Q20 to 3Q20

Quarterly Variance
United States 0.81%
Canada 0.88%

About CoreLogic Data Research

To ensure that our clients receive the most current building material and labor costs, the CoreLogic data team continuously researches hard costs such as labor, material and equipment, including mark-ups. Our research also covers soft costs such as taxes and fringes for reconstruction work performed for the insurance industry in the United States and Canada. We monitor demographics and econometric statistics, government indicators, and localization requirements, including market trends from nearly 3,000 unique economies in the United States, and over 100 in Canada.

Other factors in this process include the following:

  • Wage rates for more than 85 union and non-union trades
  • Over 100,000 line items of construction data
  • Productivity rates and crew sizes
  • Local cost concerns, such as building code requirements and other localized variables

In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys and partial and full loss claim information. For more information, or for further explanation, please contact your sales consultant or account manager.

NOTE: The cost information in this bulletin is only intended to give you a general sense of reconstruction cost trends in North America. You should NOT advocate using these factors when adjusting renewal values for specific locations or across your book of business. Please note that the building material and labor cost trends presented in this bulletin are broad averages derived from our research of construction trades and building materials.

UNITED STATES

U.S. RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 2nd quarter.

From Q1 2020 to Q2 2020, the average for U.S. building materials increased by 0.5%. For labor, the average wage rate increased 0.9%, based on construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

United States 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
1/2″ Drywall 1.7% 0.5% -0.2% 0.0% 0.4% 0.4% -0.6% 0.0%
Asphalt Shingles 1.7% 2.9% 2.4% 0.7% 1.0% 0.4% 0.7% 0.5%
Romex Wire -1.0% -3.3% -2.4% -0.5% -1.6% -3.0% -1.1% -0.8%
1/2″ Plywood 2.1% -5.3% -6.9% -5.0% -4.5% -3.0% -1.9% 1.4%
2×4 Lumber 6.8% -5.0% -8.2% -5.7% -2.8% -1.0% 1.2% 3.3%
R-13 Fiber Batt Insulation 1.8% 2.2% 0.5% 1.6% 0.8% 1.7% 1.7% 2.6%
1/2″ Copper Pipe -0.2% -1.6% -0.5% 0.5% -1.0% -1.2% -0.1% -0.7%
Ready Mix -0.4% 0.1% 0.3% 2.3% 1.1% 0.7% 0.6% 0.9%
Felt Paper 0.5% 0.7% -0.1% -0.7% -0.1% 0.4% 0.1% 0.2%

United States Cost Variances by State

Residential Reconstruction Costs
2Q20 to 3Q20

State Quarterly Variance
Alabama 0.70%
Alaska 1.04%
Arizona 0.80%
Arkansas 0.87%
California 0.56%
Colorado 0.85%
Connecticut 1.08%
Delaware 0.57%
Florida 0.87%
Georgia 0.79%
Hawaii 1.06%
Idaho 1.03%
Illinois 0.71%
Indiana 0.66%
Iowa 0.82%
Kansas 0.85%
Kentucky 0.68%
Louisiana 0.72%
Maine 1.07%
Maryland 0.69%
Massachusetts 0.92%
Michigan 0.55%
Minnesota 0.83%
Mississippi 0.77%
Missouri 0.82%
Montana 0.99%
Nebraska 1.12%
Nevada 1.17%
New Hampshire 1.07%
New Jersey 0.94%
New Mexico 0.71%
New York 1.14%
North Carolina 0.59%
North Dakota 0.98%
Ohio 0.58%
Oklahoma 0.67%
Oregon 0.82%
Pennsylvania 0.64%
Rhode Island 0.94%
South Carolina 0.69%
South Dakota 1.06%
Tennessee 0.77%
Texas 0.74%
Utah 1.13%
Vermont 1.26%
Virginia 0.75%
Washington 0.63%
West Virginia 0.74%
Wisconsin 0.84%
Wyoming 1.02%
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Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 2nd quarter.

From Q1 2020 to Q2 2020, the average change for Canadian building materials was an increase of 0.7% over the quarter. For labor, the average wage rate increased 0.2% based on the construction trade contracts that were renewed during the quarter.

CoreLogic monitors a wide variety of construction materials for the residential building industry. A snapshot of some of the most common material elements is listed below:

Canada 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20
1/2″ Drywall 2.5% 1.3% 1.3% 2.7% 1.1% 0.4% 0.2% 0.3%
Asphalt Shingles 1.9% 0.6% 0.8% 1.0% 1.5% 1.9% 0.9% 0.2%
Romex Wire 0.5% -0.5% 0.7% -0.2% 0.6% -0.6% 0.0% 0.4%
1/2″ Plywood 4.5% -5.0% -4.4% -3.1% -3.2% -2.1% -1.4% -1.3%
2×4 Lumber 8.5% -4.1% -6.6% -5.9% -4.4% -2.4% 0.3% 2.0%
R-13 Fiber Batt Insulation 1.5% 1.3% 1.5% 1.5% 2.1% 2.3% 2.3% 1.7%
1/2″ Copper Pipe 0.2% 0.3% 2.2% 1.8% 0.4% 1.4% 1.7% 1.2%
Ready Mix -1.5% 0.2% 0.7% 2.5% 1.0% 0.8% 0.7% 2.1%
Felt Paper 0.5% 0.8% 0.6% 0.8% 1.3% 1.5% 1.2% 1.1%

Canada Cost Variances by Province

Residential Reconstruction Costs
2Q20 to 3Q20

Province Quarterly Variance
Alberta 0.78%
British Columbia 0.53%
Manitoba 0.59%
New Brunswick 1.02%
Newfoundland 1.19%
Northwest Territory 0.31%
Nova Scotia 1.07%
Ontario 0.98%
Prince Edward Island 1.31%
Quebec 0.86%
Saskatchewan 1.18%
Yukon Territory -0.25%
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Whats New

Note: CoreLogic recommends a full program install whenever possible to ensure use of latest data and program enhancements.

Cost Data Changes: RCT Express 4.x, High Value, Main Street/MMH

  • The 3rd quarter 2020 cost data update reflects reconstruction cost changes in both labor and material for RCT Main Street, Mobile/Manufactured Homes, High Value, and Express 4.x. Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.

Non-Cost Data Changes:  RCT Express 4.x

– New Material Selection Added For The United States and Canada

      • “Shingles, Architectural, Impact Resistant”
      • This new material was added to parallel the existing “Hail Proof” shingle which is the impact resistant version of a non-architectural asphalt/fiberglass shingle.

– Help File Added For New Material Selection

      • “Shingles, Architectural, Impact Resistant”
      • A roof cover made of high impact laminated architectural asphalt shingles. The shingles are composed of a heavyweight, non-woven fiberglass mat which is thoroughly impregnated and coated with modified asphalt for superior strength. Assumes custom roof material colors and patterns typical of high value homes.
      • Included in Cost: Hail proof/impact resistant shingles, asphalt felt, fasteners, flashing, gutters, downspouts and installation labor.
      • Enter a percentage between 0 and 100.

– Graphic User Interface Change For New Material Selection

      • “Shingles, Architectural, Impact Resistant” added to the “Roof Cover” drop down list.

– United States Knowledge Table Default Changes

      • Foundation Type and Material default updates for Zip+4 granularity.
      • Garage default updates to include attached garages for homes built after the year 2000.
      • Roof Cover default change from “Shingles, Asphalt” to “Shingles, Architectural” for homes built after the year 2000.
      • Superstructure default updates from “Rafters, Wood w/Sheathing” to “Wood Trusses & Sheathing” for homes built after the year 2000.
      • Windows default updates from “Sash, Wood with Glass, Standard” to “Sash, Vinyl with Glass” for home built after the year 2000.

– Canada Knowledge Table Default Changes

      • Garage default updates to include attached garages for homes built after the year 2000.
      • Roof Cover default change from “Shingles, Asphalt” to “Shingles, Architectural” for homes built after the year 2000.
      • Superstructure default updates from “Rafters, Wood w/Sheathing” to “Wood Trusses & Sheathing” for homes built after the year 2000.
      • Windows default updates from “Sash, Wood with Glass, Standard” to “Sash, Vinyl with Glass” for home built after the year 2000.

Non-Cost Data Changes:  RCT High Value

– There are no Non-Cost Data changes for 3Q20.

Non-Cost Data Changes: RCT Mainstreet and Mobile/Manufactured Housing (MMH)

– There are no Non-Cost Data changes for 3Q20.