Commercial Product Bulletin
4th Quarter 2020
- Overview
- United States
- Canada
Overview
Commercial Bulletin Highlights
- 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.
| 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% |
About CoreLogic® Data Research
- 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
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% |
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% |
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.