To keep our clients informed of current market trends, CoreLogic® has curated a monthly bulletin of regional construction cost insights that are reflected in the CoreLogic Claims Pricing Database. CoreLogic’s experts combine the current month’s pricing data with four common loss scenarios, creating a model to illustrate the impact.
These data models are then applied across the nine regions noted above and compared to both the prior month and the year to date. Expert analysis is provided to supplement these data trends and provide additional insight into key drivers.
April Pricing Insights
As Q2 begins, CoreLogic’s pricing team continues to focus their efforts on collecting feedback, specifically labor rates across several categories. We invite you to join in and engage with us. Check out the different ways you can contribute here.
April pricing data shows stability across most Labor and Material categories. Most of the labor rates remained unchanged when compared to the previous month, while there are a couple of notable changes to the material prices.
Framing & Rough Carpentry continues to decline, with a month-over-month difference of -4.8% and a -10.9% difference in the 12-month period. While other material components saw a slight increase or decrease, siding prices increased by 2.2% compared to last month.
With April’s release, we see a steadying of the month-over-month growth experienced in many regions and across several trades, namely Roofing and Textile labor. Pricing database feedback continues to flow in, and the pricing team remains focused on understanding the key drivers of any differences.
Property Claim Scenarios
To demonstrate how changes in pricing impact typical loss costs, CoreLogic has replicated the estimating components found in the following most common loss scenarios. The sum of these materials is referred to as “The Basket of Goods.”
Fire/Lightning (Large Loss)
Large loss claims are modeled from a typical fire loss where all components of a home’s construction are affected. These losses typically exceed $100,000.
Losses represented within this group are typical of event activity consisting of wind and/or hail damage requiring roof replacement, partial siding replacement and accompanying accessories.
Water (Interior Multi-Room Losses)
Moderately complex losses are modeled using the bathroom as the origin of loss. A combination of replacement and repair of common household finishes are included.
Water Mitigation (Drying)
Typical drying costs for a residential structure including water extraction, removal of wet material and use of drying equipment is included.
Fire/Lightning (Large Loss) Insights: 12-Month Trend
- The large loss scenario decreased by a small margin, – 0.1% compared to the previous month; however when compared to the same time last year, it remains elevated by 10%.
- Key drivers remain the same thus far in 2023:
- Framing and rough carpentry materials saw the biggest decline at 4.8% compared to the prior month, while fencing also dipped 1.7% month over month.
- Siding prices, on the other hand, saw an increase of 2.2% over last month, while the overall 12-month comparison remains elevated at 30.7%
Wind/Hail (Exterior/Roof) Insights: 12-Month Trend
- The wind and hail scenario saw no month-over-month increase but continues to see an overall 11% increase compared to April 2022.
- These changes are fueled by both materials and labor:
- Roofing materials didn’t see any changes when compared to the previous month but saw a 16% increase when compared to April 2022.
- After three months of steady month-over-month roofing labor increases, April saw no roofing labor change. As we enter the spring storm season, the internal CoreLogic pricing team continues their labor pricing analysis, partnering with contractors in loss-prone markets to ensure the accuracy of our pricing database.
Water (Interior Reconstruction) Insights: 12-Month Trend
- The water scenario saw the biggest increase of all scenarios in April with an increase of 0.3% month over month.
- Materials associated with drywall and painting continue to increase, with an average of 1.2% compared to last month, while the 12-month development shows drywall and paint have increased by 20% on average.
- Doors and insulation saw a slight increase this month as well, with 0.1% and 0.7% respectively.
Water Mitigation (Drying) Insights: 12-Month Trend
- The water-remediation scenario prices didn’t have any significant movement this month. Water- remediation technician labor rates remain unchanged month over month, while overall remain elevated 14% compared to April 2022.
- Equipment rates are a substantial factor and continue to be investigated by CoreLogic’s pricing team to ensure our pricing database reflects the pace of change seen in recent months in the market.
About CoreLogic Data Research
CoreLogic develops this report using up-to-date materials and labor costs. CoreLogic’s team of analysts continuously researches hard costs such as labor, materials and equipment, including mark-ups, and updates its database every month. Our research also covers soft costs such as taxes and fringe benefits for reconstruction work performed in the United States for the insurance industry. CoreLogic monitors demographics and econometric statistics, government indicators, and localization requirements, including market trends from thousands of unique economies throughout the United States.
Other factors in this process include the following:
- Wage rates for more than 85 union and non-union trades
- Over 100,000 construction data points
- Productivity rates and crew sizes
- Building code requirements and localized cost variables
In addition, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys, and partial and complete loss claim information. Please complete the online form to provide feedback or request information on any items in our construction database. For further explanation or questions, please contact your sales executive or account manager.
CoreLogic is the leading property insights and technology solutions provider enabling healthy housing markets and thriving communities. Through its enhanced property data solutions, services, and technologies, CoreLogic enables real estate professionals, financial institutions, insurance carriers, government agencies, and other housing market participants to help millions of people find, buy, and restore their homes. For more information, please visit corelogic.wpengine.com.
NOTE: The building material, labor, and other cost information in this bulletin is generated using research, sources and methods current as of the date of this bulletin and is intended only to provide an estimated average of reconstruction cost trends in the specified general geographic regions of the United States. This cost information may vary further when adjusting claim values for specific property locations or specific business conditions.