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.
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:
|1/2″ Copper Pipe||-0.3%||-2.4%||0.4%||4.8%|
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.
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.
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.
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|
|½” Cooper Pipe||-1.1||-1.0||0.1||-0.3||-1.4||-0.4||-0.4||-0.3|
The table below provides a state by state snapshot of the changes in reconstruction costs for commercial and agricultural buildings.
|District of Columbia||0.53%||0.10%|
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|
|½” Cooper Pipe||0.0||1.8||2.2||0.4||1.0||1.8||1.5||0.4|
The table below provide a province by province snapshot of the changes in reconstruction costs for commercial and agricultural buildings.
|Newfoundland and Labrador||0.09%||0.05%|
|Prince Edward Island||0.76%||0.60%|
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.