Defined Regions
CoreLogic® curates this monthly bulletin of regional construction cost insights, which are reflected in the CoreLogic Claims Pricing database. We combine the current month’s pricing data with four common loss scenarios to create models illustrating market impacts across nine regions, which are compared month over month and year over year.
Our experts provide detailed analyses of changes and trends to provide additional insight into key drivers. View our Construction Database Pricing Methodology white paper to gain additional insight into how we populate cost values.
January Pricing Insights
Updates From the CoreLogic Pricing Analysis and Delivery Team
Over the course of 2023 and into 2024, the CoreLogic Pricing Analysis and Delivery Team continued to research and survey labor costs and best industry practices for all construction categories within the Claims Construction Cost Database. Based on this research and analysis, CoreLogic will continue to implement incremental monthly changes for each respective trade category throughout 2024 to standardize labor trade assignments in the CoreLogic Pricing Database. CoreLogic will publish additional insights into the pending changes beginning in the February 2024 Construction Claims Bulletin.
Line Item Refresh
The January 2024 Pricing Database release will refresh the “Finished Carpentry” and “Doors” categories. The realignment process will continue on a rolling monthly basis for all categories within the Claims Construction Cost Database. We will refresh the “Insulation” and “Drywall” categories, with expected updates in the February Pricing Database release. The line item realignment project is planned to continue through 2024.
January Pricing Insights
Loss Scenarios
At the beginning of 2023, all the loss scenarios were above 2022 pricing. On the low side, January 2023 wind/hail losses were up 12.2% when compared to a year prior. However, water mitigation averaged 22% higher during the same timeframe. In June, all loss scenarios remained elevated, but only by single-digit percentages. All scenarios continued this trend through the end of 2023 except the wind/hail scenario.
Labor
Through July 2023, most labor pricing remained on par with third quarter 2022. Pricing increases for this category began in the latter half of the year. The average labor increase was 4.6%, but there were a few labor categories with notable increases, namely water mitigation, roofing, general labor, siding, soffit-fascia-gutter, and cleaning labor. Additional details can be found in the loss scenarios.
Materials
Since April 2023, material pricing for wood-based products like fencing, framing, and rough carpentry saw significant price drops from 2022 highs. This trend continued throughout 2023. Although the decreases weren’t as large, siding and finish carpentry materials pricing also ended the year lower than 2022.
Some materials increased over 2022 pricing, including cabinetry, drywall, painting roofing, and windows.
Changes to material pricing will be discussed in more detail in the loss scenarios.
Fire/Lightning (Large Loss) Insights: 12-Month Trend
In this category, large loss claims are modeled from a typical fire loss where all components of a home’s construction are affected. Losses typically exceed $100,000.
- Fire/lightning scenario pricing increased by 18.3% in January 2023 when compared with January 2022. In December, the scenario had a 2.4% increase year over year.
Material | Change from December 2022 Pricing |
Framing / Rough Carpentry | -30.5% |
Drywall | 13.2 |
Cabinets | 1% |
Windows | 2.7% |
- General labor rates increased by 5.5% over 2022 pricing, offsetting the decreases in framing costs.
- January 2024 fire/lightning scenario pricing displayed negligible movement from December 2023.
- Material pricing from December 2023 to January 2024 is all within a +/-1% change.
Wind/Hail (Exterior/Roof) Insights: 12-Month Trend
This category represents losses due to wind and/or hail weather activity. Restoration from this damage requires roof replacement, partial siding replacement, and accompanying accessories.
- Wind/hail pricing started and ended 2023 with double-digit pricing increases. Pricing in January 2023 was 12.2% higher than January 2022, and December 2023 pricing was 11.9% higher than December 2022.
Material | Change from December 2022 Pricing |
Fencing | -22.3% |
Siding | -2.6% |
Roofing | 2.8% |
- January 2024 roofing labor rates are, on average, 8.5% higher than a year prior, and siding labor rates were 32.3% higher than January 2023 pricing.
- Wind/hail scenario pricing increased less than 0.5% month over month from December 2023 to January 2024.
Water (Interior Reconstruction) Insights: 12-Month Trend
Moderately complex losses are modeled for the interior water loss scenario using the bathroom as the origin of loss where a combination of replacement and repair of common household finishes is required.
- The Water (Interior Reconstruction) pricing in January 2023 started 17% higher on average than January 2022 pricing. The loss scenario finished December 2023 5.5% higher than December 2022 pricing
Material | Change from December 2022 Pricing |
Painting | 2% |
- Cleaning labor increased in July 2023 and then generally stabilized through December. Year over year, January 2024 pricing landed 5.5% higher than a year prior.
- Since last month, the overall Water (Interior Reconstruction) scenario experienced pricing movement of less than -1%.
Water Mitigation (Drying) Insights: 12-Month Trend
Typical drying costs for a residential structure include water extraction, wet material removal, and drying equipment use.
- Throughout 2023, water mitigation experienced pricing volatility, showing a 22% increase in January 2023 when compared with January 2022. Pricing in June 2023 was almost on par with 2022 pricing; however, by January 2024, pricing was higher than January 2023.
- Water remediation technician labor rates, the primary driver of pricing change, were stable until July 2023 when they increased and then stayed constant through the end of 2023. Water mitigation labor rates ended the year 4.9% higher than January 2023.
- Pricing changed was negligible month-over-month change.
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, material, and equipment, including mark-ups. CoreLogic updates its database every month accordingly.
Our research also covers soft costs, such as taxes and fringe benefits, for reconstruction work performed as part of 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
Additionally, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys, and both partial and complete loss claim information.
Please complete the online form to provide feedback or request information on any items in our construction database. Please contact your sales executive or account manager for additional explanations or questions. A more detailed methodology explanation can be found in our Construction Database Pricing Methodology white paper.
About CoreLogic
CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www.corelogic.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.