Commercial Product Bulletin

4th Quarter 2020

Overview

Commercial Bulletin Highlights

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

  • In Q3 2020, the average for U.S. building materials increased by 0.7%. For labor, the average wage rate increased by 1.8%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials increased by 0.7% over the quarter, for labor, the average wage rate increased by 0.4%, based on construction trade contracts that were renewed during the quarter.

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

  United States Canada
  Quarter Year Quarter Year
Aluminum Conduit -1.0% 1.2% 0.1% 3.5%
Asphalt Shingles 0.3% 2.1% 0.0% 3.7%
Concrete Block 0.6% 3.0% 0.1% 1.9%
Drywall 0.0% 0.1% 0.2% 1.5%
Felt Paper 0.1% 0.7% 0.8% 4.9%
Galvanized Pipe 0.6% 2.1% 1.3% 6.7%
Lumber 2.8% 4.7% 1.6% -1.0%
Plywood 2.5% -2.8% 0.1% -5.6%
Ready Mix 0.2% 2.8% 1.5% 4.9%
Rebar 0.4% 1.0% 0.2% -3.1%
Steel Deck 0.1% 1.0% 1.1% 4.5%
Steel Stud 0.6% 3.0% 1.0% 3.5%
Structural Steel -0.1% -2.0% 0.3% 1.8%
1/2″ Copper Pipe -0.3% -2.4% 0.4% 4.8%

National Average

Building Construction Index
Q3 2020

National Average Commercial Agricultural
United States 0.9% 0.8%
Canada 0.4% 0.3%
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.

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 cost 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. Regional Weighted Commercial Cost Changes

In Q3 2020, the average for U.S. building materials increased by 0.7%, For labor, the average wage rate increased by 1.8%, based on construction trade contracts that were renewed during the quarter.

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

US Quarterly Material Cost Changes
4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Aluminum Conduit 1.0 1.7 1.4 0.1 0.6 0.6 1.0 -1.0
Concrete Block 0.2 0.8 1.1 0.4 0.8 1.0 0.7 0.6
Drywall 1.2 -0.3 -0.1 0.3 0.7 -0.5 -0.1 0.0
Galvanized Pipe 1.9 1.9 1.1 0.8 0.5 0.5 0.5 0.6
Ready Mix 0.1 0.3 1.6 1.5 0.9 0.7 1.0 0.2
Rebar 1.4 0.6 -0.4 0.5 -0.1 0.8 -0.1 0.4
Steel Deck 1.7 1.0 0.5 -0.3 0.0 0.4 0.6 0.1
Steel Stud 2.4 1.0 -0.6 0.1 1.5 0.2 0.6 0.6
Structural Steel 1.1 -0.1 -0.5 -1.3 -0.8 -0.3 -0.8 -0.1
½” Cooper Pipe -1.1 -1.0 0.1 -0.3 -1.4 -0.4 -0.4 -0.3

U.S. State by State

Building Construction Index
Q3 2020

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

State Commercial Agricultural
Alabama 0.85% 0.90%
Arizona 1.07% 1.03%
Arkansas 0.77% 0.35%
California 0.98% 0.74%
Colorado 1.14% 0.64%
Connecticut 0.85% 0.54%
Delaware 0.95% 0.20%
District of Columbia 0.53% 0.10%
Florida 0.38% 0.16%
Georgia 1.87% 1.94%
Idaho 1.95% 2.01%
Illinois 0.38% 0.24%
Indiana 0.74% 0.74%
Iowa 1.14% 1.32%
Kansas 1.63% 1.68%
Kentucky 0.87% 0.52%
Louisiana 0.80% 0.70%
Maine 1.24% 0.76%
Maryland 0.99% 0.73%
Massachusetts 1.44% 1.48%
Michigan 0.55% 0.53%
Minnesota 1.19% 0.78%
Mississippi 1.08% 0.97%
Missouri 1.10% 0.78%
Montana 1.68% 1.58%
Nebraska 0.81% 0.92%
Nevada 0.68% 0.89%
New Hampshire 1.57% 1.56%
New Jersey 1.68% 1.92%
New Mexico 0.58% 0.37%
New York 0.78% 0.67%
North Carolina 1.26% 0.76%
North Dakota 0.62% 0.73%
Ohio 0.08% -0.04%
Oklahoma 0.90% 0.71%
Oregon 1.00% 0.91%
Pennsylvania 0.39% 0.35%
Rhode Island 0.89% 0.10%
South Carolina 0.43% 0.55%
South Dakota 1.33% 1.06%
Tennessee 0.72% 0.97%
Texas 0.92% 0.63%
Utah 2.76% 1.90%
Vermont 1.59% 2.20%
Virginia 1.06% 1.08%
Washington 0.43% 0.50%
West Virginia 0.34% 0.27%
Wisconsin 0.42% 0.23%
Wyoming 1.78% 1.19%
Alaska 0.62% 0.36%
Hawaii 1.27% 1.70%
Q3 2020 Commercial Building Construction Index
q4-2020-comm-bulletins-ag-en

Canada

Canada Regional Weighted Commercial Cost Changes

The average change for Canadian building materials increased by 0.7% over the quarter, for labor, the average wage rate increased by 0.4%, based on construction trade contracts that were renewed during the quarter.

Canada Quarterly Material Cost Changes
4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
Aluminum Conduit -0.5 1.6 1.8 1.9 1.5 0.8 1.1 0.1
Concrete Block 0.7 0.3 2.1 1.1 0.7 0.7 0.4 0.1
Drywall 1.1 2.1 2.0 1.2 0.8 0.3 0.1 0.2
Galvanized Pipe -0.3 0.5 1.9 1.2 1.9 1.6 1.6 1.3
Ready Mix -0.1 0.7 2.4 0.8 1.1 0.0 2.2 1.5
Rebar 1.2 0.1 -0.7 -1.6 -1.6 -0.6 -1.1 0.2
Steel Deck 0.3 0.1 1.1 0.9 0.8 1.7 0.8 1.1
Steel Stud 2.0 2.4 2.0 1.1 0.7 0.9 0.9 1.0
Structural Steel 0.9 0.8 -0.6 0.8 0.3 0.5 0.6 0.3
½” Cooper Pipe 0.0 1.8 2.2 0.4 1.0 1.8 1.5 0.4

Canada Province by Province

Building Construction Index
Q3 2020

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

Province Commercial Agriculture
Alberta 0.41% 0.40%
British Columbia 1.18% 0.84%
Manitoba -0.20% -0.06%
New Brunswick 0.39% 0.46%
Nova Scotia 0.26% 0.03%
Ontario 0.43% 0.33%
Quebec 0.21% 0.08%
Saskatchewan 0.62% 0.67%
Newfoundland and Labrador 0.09% 0.05%
Prince Edward Island 0.76% 0.60%
Q3 Commercial Building Index
Q3 2020 Commercial Building Index CA Agriculture

What’s New

CoreLogic is aware of increasing lumber prices currently happening in the United States. Please note that the Q4 2020 delivery represents the change in material and labor as of September 1st, 2020. Our research shows that lumber increases started in the second half of September. Therefore, if lumber prices continue to increase through the end of the year the cost increases will not be fully realized in the Q4 2020 delivery but the Q1 2021 delivery. CoreLogic researches cities throughout the United States and Canada on a rolling monthly basis and provides updated costs for the entire United States and Canada on a quarterly basis. The Q4 2020 delivery is the change in costs from Q3 2020, which is represents material and labor costs as of June 1st, 2020. CoreLogic will provide any additional communications as needed as we continue our research.