Solutions

Residential Product Bulletin

4th Quarter 2019

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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 2019 to Q3 2019, the average for U.S. building materials decreased by 1.0%. 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 a decrease of 0.3% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.4%.

 

                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit0.1%3.7%1.5%5.3%
Asphalt Shingles1.0%7.2%1.5%4.0%
Concrete Block0.4%2.6%0.8%4.1%
Drywall0.4%.08%1.1%6.7%
Felt Paper-0.1%-0.3%1.3%3.6%
Galvanized Pipe0.6%4.9%1.7%4.3%
Lumber-2.8%-20.1%-4.4%-19.5%
Plywood-4.5%-20.0%-3.2%-14.7%
Ready Mix1.1%3.9%1.0%1.8%
Rebar0.4%1.8%-1.9%4.3%
Steel Deck-0.2%2.0%0.5%-2.5%
Steel Stud0.0%2.1%0.9%7.5%
Structural Steel-1.2%-1.3%0.5%1.5%
1/2″ Copper Pipe-1.0%-2.5%0.4%4.8%

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 4th quarter.

From Q2 2019 to Q3 2019, the average for U.S. building materials decreased by 1.0%. 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:

 

US4Q171Q182Q183Q184Q181Q192Q193Q19
Asphalt Shingles-0.1%-0.2%0.3%1.7%2.9%2.4%0.7%1.0%
Romex Wire6.9%6.6%2.9%-1.0%-3.3%-2.4%-0.5%-1.6%
1/2″ Drywall0.2%1.5%2.5%1.7%0.5%-0.2%0.0%0.4%
Felt Paper-0.3%-0.3%0.3%0.5%0.7%-0.1%-0.7%-0.1%
R-13 Fiber Batt Insulation0.3%.02%-1.1%1.8%2.2%0.5%1.6%0.8%
2×4 Lumber3.9%1.6%5.3%6.8%-5.0%-8.2%-5.7%-2.8%
1/2″ Plywood12.5%3.4%7.0%2.1%-5.3%-6.9%-5.0%-4.5%
Ready Mix1.2%2.8%-0.8%-0.4%0.1%0.3%2.3%1.1%
1/2″ Copper Pipe-3.2%0.6%-0.1%-0.2%-1.6%-0.5%0.5%-1.0%

United States Cost Variances by State

Residential Reconstruction Costs
2Q19 to 3Q19

StateQuarterly Variance
Alabama0.34%
Alaska0.64%
Arizona1.14%
Arkansas0.84%
California0.95%
Colorado1.03%
Connecticut0.58%
Delaware0.73%
Florida0.76%
Georgia0.88%
Hawaii0.77%
Idaho1.23%
Illinois0.56%
Indiana0.72%
Iowa0.70%
Kansas0.79%
Kentucky0.67%
Louisiana0.80%
Maine0.99%
Maryland0.72%
Massachusetts0.76%
Michigan0.72%
Minnesota0.95%
Mississippi0.76%
Missouri0.72%
Montana0.94%
Nebraska0.92%
Nevada0.70%
New Hampshire0.98%
New Jersey0.68%
New Mexico1.14%
New York0.67%
North Carolina0.80%
North Dakota0.73%
Ohio0.85%
Oklahoma0.51%
Oregon1.00%
Pennsylvania0.75%
Rhode Island0.64%
South Carolina0.84%
South Dakota0.99%
Tennessee0.66%
Texas0.74%
Utah0.92%
Vermont0.83%
Virginia0.75%
Washington0.87%
West Virginia0.65%
Wisconsin0.43%
Wyoming0.75%

Canada

Canada RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 3rd quarter.

From Q2 2019 to Q3 2019, the average change for Canadian building materials was a decrease of 0.3% over the quarter. For labor, the average wage rate increased 0.4% 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:

 

Canada4Q171Q182Q183Q184Q181Q192Q193Q19
Asphalt Shingles0.4%0.5%0.9%1.9%0.6%0.8%1.0%1.5%
Romex Wire3.6%2.5%2.8%0.5%-0.5%0.7%-0.2%0.6%
1/2″ Drywall1.8%1.5%3.8%2.5%1.3%1.3%2.7%1.1%
Felt Paper2.9%0.4%0.4%0.5%0.8%0.6%0.8%1.3%
R-13 Fiber Batt Insulation1.4%1.4%1.9%1.5%1.3%1.5%1.5%2.1%
2×4 Lumber4.3%1.5%3.2%8.5-4.1%-6.6%-5.9%-4.4%
1/2″ Plywood10.3-2.05.44.5%-5.0%-4.4%-3.1%-3.2%
Ready Mix2.1%3.9%-3.5%-1.5%0.2%0.7%2.5%1.0%
1/2″ Copper Pipe-0.4%0.1%-0.9%-0.2%0.3%2.2%1.8%0.4%

Canada Cost Variances by Province

Residential Reconstruction Costs
2Q19 to 3Q19

The table below provide a province by province snapshot of the changes in reconstruction costs for commercial and agricultural buildings.

ProvinceQuarterly Variance
Alberta1.35%
British Columbia1.55%
Manitoba0.58%
New Brunswick0.65%
Newfoundland0.88%
Northwest Territory1.98%
Nova Scotia0.30%
Ontario1.08%
Prince Edward Island1.78%
Quebec0.60%
Saskatchewan1.18%
Yukon Territory2.19%

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

Non-Cost Data Changes:  RCT Express 4.x

1. New Photovoltaic System Material Selections – RCT Express 4.0 & Higher

New Photovoltaic System Material Selections are being added to offer the user more options to correctly size the system.  The 6, 8, 10, and 12 kW systems being added are a result of market research and are reflective of the current photovoltaic systems being installed as of 3Q2019.

2.   New Help Menu Files For The New Photovoltaic Systems – RCT Express 4.0 & Higher

The Help Menu files will be updated to aid the user in selecting and entering the correct Photovoltaic System.

Revisions to existing help menu files for:

  • Photovoltaic System, 2 kW (formerly “Average”)
  • Photovoltaic System, 4 kW (formerly “Large”)

New help menu files for:

  • Photovoltaic System, 6 kW
  • Photovoltaic System, 8 kW
  • Photovoltaic System, 10 kW
  • Photovoltaic System, 12 kW

3.  Graphic User Interface Drop Down List Changes For “Photovoltaic System, XX kW” – RCT Express 4.0 & Higher

All of the new “Photovoltaic Systems, XX kW” will be added to the GUI in the same drop down list as the existing 2 kW and 4 kW systems (“Construction Details – Electrical & Wiring).

4. Assumption/Knowledge Table Changes – Large Tract Home (LTH) Zip+4’s Being Added Nationwide – RCT Express 4.6

Nationwide coverage of Large Tract Homes with Zip+4 granularity.

5. Cost Data Changes From The BCD and Collector – Mainstreet, MMH, High Value, & RCT 4.x

Non-Cost Data Changes:  High Value 4.3.x and 4.2.x

  • None

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

    • None