Solutions

Residential Product Bulletin

4th Quarter 2018

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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 Q2 2018 to Q3 2018, the average for U.S. building materials increased by 2.2%. 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 2.0% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.7%.

 

                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit2.2%11.7%1.3%0.7%
Asphalt Shingles1.7%1.6%1.9%3.7%
Concrete Block0.8%3.2%1.6%4.7%
Drywall1.7%6.1%2.5%10.0%
Felt Paper0.5%0.1%0.5%4.3%
Galvanized Pipe5.8%7.1%0.0%-3.9%
Lumber5.8%18.8%8.5%18.6%
Plywood2.1%27.1%4.5%19.2%
Ready Mix-0.4%2.9%-1.5%0.8%
Rebar5.5%14.1%5.5%10.7%
Steel Deck5.3%10.2%0.8%2.0%
Steel Stud5.8%14.1%4.3%8.2%
Structural Steel7.6%18.3%8.2%15.0%
1/2″ Copper Pipe-0.2%-3.0%0.2%-1.0%

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 Q2 2018 to Q3 2018, the average for U.S. building materials increased by 2.2%. 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 States4Q161Q172Q173Q174Q171Q182Q183Q18
Asphalt Shingles0.1%0.1%-0.2%-0.4%-0.1%-0.2%0.3%1.7%
Romex Wire-1.3%6.2%5.8%1.9%6.9%6.6%2.9%-1.0%
1/2″ Drywall0.0%1.5%1.3%0.2%0.2%1.5%2.5%1.7%
Felt Paper-0.1%0.5%0.0%-0.3%-0.3%-0.3%0.3%0.5%
R-13 Fiber Batt Insulation-0.4%0.5%0.2%-0.1%0.3%0.2%-1.1%1.8%
2×4 Lumber3.5%2.0%5.5%6.3%3.9%1.6%5.3%6.8%
1/2″ Plywood0.0%-0.1%3.2%1.3%12.5%3.4%7.0%2.1%
Ready Mix0.1%3.4%-0.2%-0.4%1.2%2.8%-0.8%-0.4%
1/2″ Copper Pipe0.7%4.4%4.0%-0.8%-3.2%0.6%-0.1%-0.2%

United States Cost Variances by State

Residential Reconstruction Costs
3Q18 to 4Q18

StateQuarterly Variance
Alabama1.27%
Alaska1.02%
Arizona1.67%
Arkansas1.70%
California2.09%
Colorado1.50%
Connecticut1.23%
Delaware1.33%
Florida1.72%
Georgia1.55%
Hawaii1.04%
Idaho1.89%
Illinois1.43%
Indiana1.54%
Iowa1.26%
Kansas1.34%
Kentucky1.42%
Louisiana1.68%
Maine1.31%
Maryland1.54%
Massachusetts1.15%
Michigan1.14%
Minnesota1.57%
Mississippi1.60%
Missouri1.41%
Montana1.46%
Nebraska1.44%
Nevada1.74%
New Hampshire1.52%
New Jersey1.71%
New Mexico1.68%
New York1.45%
North Carolina1.53%
North Dakota1.32%
Ohio1.26%
Oklahoma1.31%
Oregon1.43%
Pennsylvania1.29%
Rhode Island0.96%
South Carolina1.62%
South Dakota1.46%
Tennessee1.63%
Texas1.56%
Utah1.93%
Vermont1.47%
Virginia1.46%
Washington1.17%
West Virginia1.35%
Wisconsin1.05%
Wyoming1.96%
 

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 Q2 2018 to Q3 2018, the average change for Canadian building materials was an increase of 2.0% over the quarter. For labor, the average wage rate increased 0.7% 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:

 

Canada4Q161Q172Q173Q174Q171Q182Q183Q18
Asphalt Shingles-1.1%0.8%-0.5%-0.7%0.4%0.5%0.9%1.9%
Romex Wire-1.3%2.8%1.0%-0.4%3.6%2.5%2.8%0.5%
1/2″ Drywall1.5%3.2%1.4%1.7%1.8%1.5%3.8%2.5%
Felt Paper-0.2%0.6%-0.4%-0.4%2.9%0.4%0.4%0.5%
 R-13 Fiber Batt Insulation-0.4%0.8%0.4%1.7%1.4%1.4%1.9%1.5%
2×4 Lumber3.0%2.4%5.7%7.9%4.3%1.5%3.2%8.5%
1/2″ Plywood2.7%0.9%0.9%10.0%10.3%-2.0%5.4%4.5%
Ready Mix0.5%3.6%-2.7%-1.4%2.1%3.9%-3.5%-1.5%
1/2″ Copper Pipe-1.0%2.1%0.9%-1.9%-0.4%0.1%-0.9%0.2%

Canada Cost Variances by Province

Residential Reconstruction Costs
1Q21 to 2Q21

 

ProvinceQuarterly Variance
Alberta0.90%
British Columbia1.48%
Manitoba1.20%
New Brunswick0.16%
Newfoundland1.43%
Northwest Territory1.43%
Nova Scotia2.24%
Ontario1.51%
Prince Edward Is.0.60%
Quebec1.09%
Saskatchewan1.21%
Yukon Territory2.08%
Q2 2021 Residential Product Bulletin Canada

Whats New

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

Cost Data Changes:

  • RCT Main Street, High Value, 4.x and Mobile Manufactured Housing

    The fourth quarter 2018 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.

    RCT Main Street and High Value

    Updates were made to the costs associated with MSID 060508 Heating, Electric Baseboard to match RCT 4.x and better represent current market costs.

    Non-Cost Data Changes:

    RCT 4.x Knowledge Table Changes

    Based on client inquiry and additional research, the RCT 4.x knowledge tables have been updated to better represent the most common foundation type in zip codes 33781 and 34683. The foundation type has been updated from “Pier” to “Slab at Grade” and the foundation material has been updated from “Wood” to “Concrete”.