Solutions

Residential Product Bulletin

3rd Quarter 2021

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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 2021 to Q2 2021, the average for U.S. building materials increased 27.3%. For labor, the average wage rate increased 0.8%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 16.7% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.6%.


  United States Canada
  Quarter Year Quarter Year
Aluminum Conduit 7.5% 13.8% 5.9% 6.8%
Asphalt Shingles 0.9% 2.5% 0.5% 1.1%
Concrete Block 0.9% 1.7% 0.9% 2.5%
Drywall 1.8% 2.6% 0.3% 1.1%
Felt Paper 0.9% 1.9% 0.8% 2.5%
Galvanized Pipe 4.3% 5.7% 3.5% 8.0%
Lumber 53.9% 129.5% 47.3% 151.8%
Plywood 88.8% 165.4% 62.9% 120.9%
Ready Mix 1.7% 4.6% 2.5% 9.0%
Rebar 5.5% 7.3% 3.9% 4.1%
Steel Deck 5.6% 7.3% 4.7% 7.6%
Steel Stud 8.4% 10.4% 3.2% 5.4%
Structural Steel 8.7% 10.0% 5.4% 6.4%
1/2″ Copper Pipe 15.6% 20.1% 0.9% 2.7%

National Average

Residential Reconstruction Costs 1Q21 to 2Q21

Quarterly Variance
United States 8.98%
Canada 5.74%

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 1st quarter.

From Q1 2021 to Q2 2021, the average for U.S. building materials increased by 27.3%.  For labor, the average wage rate increased 0.8%, 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 States3Q194Q191Q202Q203Q204Q201Q212Q21
1/2″ Drywall0.4%0.4%-0.6%0.0%0.5%0.2%0.1%1.8%
Asphalt Shingles1.0%0.4%0.7%0.5%0.5%0.4%0.6%0.9%
Romex Wire-1.6%-3.0%-1.1%-0.8%1.2%2.4%5.6%51.9%
1/2″ Plywood-4.5%-3.0%-1.9%1.4%4.7%27.1%5.6%88.8%
2×4 Lumber-2.8%-1.0%1.2%3.3%4.6%35.4%5.3%53.9%
R-13 Fiber Batt Insulation0.8%1.7%1.7%2.6%1.8%1.7%1.7%7.5%
1/2″ Copper Pipe-1.0%-1.2%-0.1%-0.7%0.0%1.0%3.0%15.6%
Ready Mix1.1%0.7%0.6%0.9%0.5%1.8%0.6%1.7%
Felt Paper-0.1%0.4%0.1%0.2%0.3%0.1%0.5%0.9%

United States Cost Variances by State

Residential Reconstruction Costs 2Q21 to 3Q21

State Quarterly Variance
Alabama 10.94%
Alaska 9.08%
Arizona 9.98%
Arkansas 9.40%
California 6.90%
Colorado 9.66%
Connecticut 6.68%
Delaware 9.03%
Florida 10.21%
Georgia 8.40%
Hawaii 11.33%
Idaho 9.45%
Illinois 7.48%
Indiana 9.25%
Iowa 8.91%
Kansas 10.61%
Kentucky 8.43%
Louisiana 11.33%
Maine 7.65%
Maryland 7.80%
Massachusetts 7.47%
Michigan 8.39%
Minnesota 7.55%
Mississippi 9.54%
Missouri 9.20%
Montana 9.89%
Nebraska 10.12%
Nevada 9.22%
New Hampshire 6.76%
New Jersey 6.72%
New Mexico 10.47%
New York 7.45%
North Carolina 10.15%
North Dakota 8.22%
Ohio 10.00%
Oklahoma 10.14%
Oregon 8.35%
Pennsylvania 8.16%
Rhode Island 8.17%
South Carolina 10.03%
South Dakota 8.92%
Tennessee 9.56%
Texas 10.38%
Utah 8.98%
Vermont 7.40%
Virginia 9.64%
Washington 9.68%
West Virginia 8.49%
Wisconsin 8.06%
Wyoming 9.34%
Q3 2021 US RCT Express Cost Variations

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 1st quarter.

From Q1 2021 to Q2 2021, the average change for Canadian building materials was an increase of 16.7% over the quarter. For labor, the average wage rate increased 0.6% 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 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21
1/2″ Drywall 1.1% 0.4% 0.2% 0.3% 0.2% 0.4% 0.2% 0.3%
Asphalt Shingles 1.5% 1.9% 0.9% 0.2% 0.1% 0.1% 0.3% 0.5%
Romex Wire 0.6% -0.6% 0.0% 0.4% 0.6% 0.5% 3.6% 45.8%
1/2″ Plywood -3.2% -2.1% -1.4% -1.3% 1.3% 30.8% 2.4% 62.9%
2×4 Lumber -4.4% -2.4% 0.3% 2.0% 3.8% 62.7% 1.2% 47.3%
R-13 Fiber Batt Insulation 2.1% 2.3% 2.3% 1.7% 2.6% 1.9% 1.6% 4.5%
1/2″ Copper Pipe 0.4% 1.4% 1.7% 1.2% 0.4% 0.4% 1.1% 0.9%
Ready Mix 1.0% 0.8% 0.7% 2.1% 1.5% 3.0% 1.7% 2.5%
Felt Paper 1.3% 1.5% 1.2% 1.1% 0.6% 0.4% 0.6% 0.8%


Canada Cost Variances by Province

Residential Reconstruction Costs 1Q21 to 2Q21

Province Quarterly Variance
Alberta 5.27%
British Columbia 4.77%
Manitoba 5.95%
New Brunswick 8.16%
Newfoundland 5.08%
Northwest Territory 4.96%
Nova Scotia 5.85%
Ontario 6.17%
Prince Edward Is. 8.83%
Quebec 5.14%
Saskatchewan 5.77%
Yukon Territory 5.03%
Q3 2021-canada RCT Express-cost-variations

Whats New

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

Cost Data Changes:

  • The 3rd quarter 2021 cost data update reflects reconstruction cost changes in both labor and material. Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.
  • Assembly changes to Exterior Wall Coverings to more accurately reflect material costs.

The assembly changes are for the following Material Selections:

  • Siding, Cement Fiber’
  • Siding, Clapboard’
  • Siding, Vinyl’

Non-Cost Data Changes:  RCT Express 4.x

  • Updated Help Menu Description verbiage for Breezeways indicating the user-selected roof covering for the Main Home will be used to calculate costs for the roof covering of the Breezeway.

The Help Menu File changes are for the following Material Selections:

  • ‘Screened Breezeway, Small’
  • ‘Screened Breezeway, Medium’
  • ‘Screened Breezeway, Large’
  • ‘Screened Breezeway, Square Feet’
  • ‘Open Breezeway, Small’
  • ‘Open Breezeway, Medium’
  • ‘Open Breezeway, Large’
  • ‘Open Breezeway, Square Feet’
  • ‘Enclosed Breezeway, Small’
  • ‘Enclosed Breezeway, Medium’
  • ‘Enclosed Breezeway, Large’
  • ‘Enclosed Breezeway, Square Feet’
  • ‘Enclosed Breezeway, Custom’
  • ‘Enclosed Breezeway, Luxury’

 

  • The Help File definition for ‘Photovoltaic System, 4 kWh’ was corrected to read as follows:

 

  • “Included in Cost: Roof mounted grid-tied photovoltaic solar panel system that generates 4 kilowatts (kWh) of electricity, 12 (twelve) 1 meter x 2 meter (39”x79”) photovoltaic panels producing approximately 325 watts, DC/AC solar power inverter, aluminum rack system, combiner panel board, safety switches, lightning arrestors, grounding rod, conduit and wiring to power grid at service panel, feeder wire, connection and activation of photovoltaic array, and installation labor.”

Non-Cost Data Changes:  RCT High Value

  • There are no Non-Cost Data changes for 3Q21.

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

  • There are no Non-Cost Data changes for 3Q21.