Solutions

Commercial Product Bulletin

1st 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 Q4 2019, the average for U.S. building materials decreased by -0.6%.  For labor, the average wage rate increased by 0.7%, based on construction trade contracts that were renewed during the quarter.

  • The average change for Canadian building materials increased by 0.1% over the quarter, for labor, the average wage rate increased by 0.5%, 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:

                                 United States                    Canada
 QuarterYearQuarterYear
Aluminum Conduit0.6%3.9%1.5%6.9%
Asphalt Shingles0.7%5.6%1.6%4.5%
Concrete Block0.8%3.1%0.7%4.2%
Drywall0.7%0.6%0.8%6.2%
Felt Paper0.1%-0.7%1.4%4.0%
Galvanized Pipe0.5%4.4%1.9%5.7%
Lumber-1.5%-18.3%-3.3%-19.0%
Plywood-3.5%-18.7%-2.9%-14.1%
Ready Mix0.9%4.3%1.1%5.1%
Rebar-0.1%0.5%-1.6%-3.7%
Steel Deck0.0%1.2%0.8%3.0%
Steel Stud-1.5%2.1%0.7%6.4%
Structural Steel-0.8%-2.7%0.3%1.2%
1/2″ Copper Pipe-1.4%-2.6%1.0%5.5%

National Average

Building Construction Index
Q1 2020

National AverageCommercial
United States0.3%
Canada0.3%

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 Q4 2019, the average for U.S. building materials decreased by -0.6%. For labor, the average wage rate increased by 0.7%, 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

1Q182Q183Q184Q181Q192Q193Q194Q19
Aluminum Conduit3.03.12.01.01.71.40.10.6
Concrete Block0.70.91.20.20.81.10.40.8
Drywall0.53.21.61.2-0.3-0.10.30.7
Galvanized Pipe-0.10.35.91.91.91.10.80.5
Ready Mix3.60.2-1.00.10.31.61.50.9
Rebar0.75.28.11.40.6-0.40.5-0.1
Steel Deck0.32.56.21.71.00.5-0.30.0
Steel Stud1.42.97.32.41.0-0.60.11.5
Structural Steel-0.35.911.91.1-0.1-0.5-1.3-0.8
½” Cooper Pipe-0.80.7-0.3-1.1-1.00.1-0.3-1.4

U.S. State by State

Building Construction Index
Q1 2020

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

StateCommercialAgricultural
Alabama-0.11%0.29%
Arizona0.33%0.86%
Arkansas0.65%1.00%
California0.78%1.15%
Colorado0.81%0.86%
Connecticut0.32%0.25%
Delaware0.07%-0.40%
District of Columbia0.20%0.70%
Florida0.59%0.80%
Georgia0.95%0.83%
Idaho0.80%1.15%
Illinois0.67%0.65%
Indiana0.08%0.34%
Iowa0.11%0.13%
Kansas-0.08%0.57%
Kentucky-0.08%0.40%
Louisiana-0.09%0.25%
Maine0.35%0.56%
Maryland-0.36%0.03%
Massachusetts0.76%0.81%
Michigan0.02%0.25%
Minnesota0.55%0.95%
Mississippi0.00%-0.02%
Missouri0.21%0.50%
Montana0.41%0.64%
Nebraska0.55%0.99%
Nevada0.56%0.47%
New Hampshire0.01%0.20%
New Jersey-0.15%0.39%
New Mexico0.79%0.98%
New York0.21%0.16%
North Carolina0.29%0.55%
North Dakota0.37%0.73%
Ohio0.47%0.62%
Oklahoma-0.18%-0.17%
Oregon0.79%0.85%
Pennsylvania0.01%0.26%
Rhode Island-0.05%0.40%
South Carolina-0.46%1.02%
South Dakota-0.23%-0.05%
Tennessee0.42%0.90%
Texas0.30%0.38%
Utah1.55%1.30%
Vermont0.15%0.40%
Virginia0.18%0.72%
Washington-0.09%0.10%
West Virginia0.42%0.76%
Wisconsin-0.05%0.20%
Wyoming0.83%1.14%
Alaska0.42%0.73%
Hawaii0.32%0.50%
Q4 2019 US Commercial Building Construction Index
q4-commercial-index-2-650

Canada

Canada Regional Weighted Commercial Cost Changes

The average change for Canadian building materials increased by 0.1% over the quarter. For labor, the average wage rate increased by 0.5%, 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:

Canada Quarterly Material Cost Changes1Q182Q183Q184Q181Q192Q193Q194Q19
Aluminum Conduit-0.10.70.7-0.51.61.81.91.5
Concrete Block1.00.92.00.70.32.11.10.7
Drywall1.33.03.41.12.12.01.20.8
Galvanized Pipe-1.6-1.0-0.1-0.30.51.91.21.9
Ready Mix5.4-0.8-3.7-0.10.72.40.81.1
Rebar0.22.17.41.20.1-0.7-1.6-1.6
Steel Deck0.50.30.80.30.11.10.90.8
Steel Stud0.12.04.72.02.42.01.10.7
Structural Steel-0.13.111.50.90.8-0.60.80.3
½” Cooper Pipe-0.1-0.40.20.01.82.20.41.0

Canada Province by Province

Building Construction Index
Q1 2020

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

ProvinceCommercialAgricultural
Alberta0.11%0.40%
British Columbia0.43%0.73%
Manitoba0.40%0.16%
New Brunswick-0.24%0.13%
Nova Scotia1.74%2.32%
Ontario-0.30%0.22%
Quebec0.11%0.19%
Saskatchewan0.21%0.43%
Newfoundland and Labrador0.37%0.84%
Prince Edward Island-0.02%0.60%
Q4 2019 Canada Commercial Building Construction Index
Q4 2019 Canada Agricultural Building Construction Index