Solutions

Residential Product Bulletin

1st Quarter 2020

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Overview

RCT Express® Product Bulletin Highlights

CoreLogic® monitors a wide variety of construction materials for the residential building industry. A few of this quarter’s highlights are:

  • From Q3 2019 to Q4 2019, the average for U.S. building materials decreased by -0.5%. For labor, the average wage rate increased 0.8%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 0.4% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increased 0.9%.

 

United StatesCanada
 QuarterYearQuarterYear
Aluminum Conduit0.7%3.3%1.6%7.4%
Asphalt Shingles0.4%4.6%1.9%5.3%
Concrete Block1.2%3.5%0.6%4.2%
Drywall0.4%0.7%0.4%5.7%
Felt Paper0.4%-0.5%1.5%4.3%
Galvanized Pipe0.6%3.7%1.9%6.9%
Lumber-1.0%-16.7%-2.4%-18.1%
Plywood-3.0%-18.1%-2.1%-12.1%
Ready Mix0.7%4.5%0.8%5.0%
Rebar-0.2%0.6%-1.4%-4.8%
Steel Deck0.1%0.9%1.0%3.2%
Steel Stud1.8%1.8%0.2%5.4%
Structural Steel-0.7%-2.9%0.1%0.2%
1/2″ Copper Pipe-1.2%-2.1%1.4%5.9%

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 costs 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 RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 4th quarter. From Q3 2019 to Q4 2019, the average for U.S. building materials decreased by -0.5%. For labor, the average wage rate increased 0.8%, 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:
US 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19
1/2″ Drywall 1.5% 2.5% 1.7% 0.5% -0.2% 0.0% 0.4% 0.4%
Asphalt Shingles -0.2% 0.3% 1.7% 2.9% 2.4% 0.7% 1.0% 0.4%
Romex Wire 6.6% 2.9% -1.0% -3.3% -2.4% -0.5% -1.6% -3.0%
1/2″ Plywood 3.4% 7.0% 2.1% -5.3% -6.9% -5.0% -4.5% -3.0%
2×4 Lumber 1.6% 5.3% 6.8% -5.0% -8.2% -5.7% -2.8% -1.0%
R-13 Fiber Batt Insulation 0.2% -1.1% 1.8% 2.2% 0.5% 1.6% 0.8% 1.7%
1/2″ Copper Pipe 0.6% -0.1% -0.2% -1.6% -0.5% 0.5% -1.0% -1.2%
Ready Mix 2.8% -0.8% -0.4% 0.1% 0.3% 2.3% 1.1% 0.7%
Felt Paper -0.3% 0.3% 0.5% 0.7% -0.1% -0.7% -0.1% 0.4%
 
State Quarterly Variance
Alabama 0.58%
Alaska 0.95%
Arizona 1.00%
Arkansas 1.13%
California 1.29%
Colorado 0.90%
Connecticut 0.56%
Delaware 0.43%
Florida 0.67%
Georgia 1.06%
Hawaii 0.78%
Idaho 1.35%
Illinois 0.81%
Indiana 0.80%
Iowa 0.61%
Kansas 0.72%
Kentucky 0.65%
Louisiana 0.78%
Maine 0.92%
Maryland 0.42%
Massachusetts 0.63%
Michigan 0.59%
Minnesota 0.59%
Mississippi 0.82%
Missouri 0.57%
Montana 1.28%
Nebraska 0.95%
Nevada 1.11%
New Hampshire 0.65%
New Jersey 0.18%
New Mexico 1.05%
New York 0.45%
North Carolina 0.78%
North Dakota 0.82%
Ohio 0.52%
Oklahoma 0.57%
Oregon 1.17%
Pennsylvania 0.40%
Rhode Island 0.46%
South Carolina 1.11%
South Dakota 0.74%
Tennessee 0.80%
Texas 0.97%
Utah 1.17%
Vermont 0.88%
Virginia 0.85%
Washington 1.04%
West Virginia 0.77%
Wisconsin 0.56%
Wyoming 1.20%

Canada

Canada Regional RCT Express® Cost Changes

The tables below provide a snapshot of the changes in reconstruction costs for residential buildings in the 3rd quarter.

From Q3 2019 to Q4 2019, the average change for Canadian building materials was an increase of 0.4% over the quarter. For labor, the average wage rate increased 0.9% based on the 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:

 

Canada1Q182Q183Q184Q181Q192Q193Q194Q19
1/2″ Drywall1.5%3.8%2.5%1.3%1.3%2.7%1.1%0.4%
Asphalt Shingles0.5%0.9%1.9%0.6%0.8%1.0%1.5%1.9%
Romex Wire2.5%2.8%0.5%-0.5%0.7%-0.2%0.6%-0.6%
1/2″ Plywood-2.0%5.4%4.5%-5.0%-4.4%-3.1%-3.2%-2.1%
2×4 Lumber1.5%3.2%8.5-4.1%-6.6%-5.9%-4.4%-2.4%
R-13 Fiber Batt Insulation1.4%1.9%1.5%1.3%1.5%1.5%2.1%2.3%
1/2″ Copper Pipe0.1%-0.9%-0.2%0.3%2.2%1.8%0.4%1.4%
Ready Mix3.9%-3.5%-1.5%0.2%0.7%2.5%1.0%0.8%
Felt Paper0.4%0.4%0.5%0.8%0.6%0.8%1.3%1.5%

Canada Cost Variances by Province

Residential Reconstruction Costs
4Q19 to 1Q20

ProvinceQuarterly Variance
Alberta1.22%
British Columbia1.68%
Manitoba1.55%
New Brunswick2.35%
Newfoundland1.54%
Northwest Territory0.96%
Nova Scotia2.18%
Ontario0.96%
Prince Edward Island1.81%
Quebec1.20%
Saskatchewan1.51%
Yukon Territory1.03%

Whats New

Note: CoreLogic recommends a full program install whenever possible to ensure use of latest data and program enhancements.

Cost Data Changes:

The 1st quarter 2020 cost data update reflects reconstruction cost changes in both labor and material for RCT Main Street, Mobile/Manufactured Homes, High Value, and Express 4.x.  Standardized costs in this release reflect localized, updated costs representing the impact of emerging markets and economic trends on construction costs.

1.       Exterior Wall Framing Assembly Changes – RCT Express 4.x

Includes assembly changes to the existing “Stud, 2 x 4” and “Stud, 2 x 6” exterior wall materials to better reflect current building design and costs.

NOTE:  No assembly changes were made for Mobile/Manufactured homes calculated with RCT Express 4.x.

2.       Interior Steel Stud Wall Framing Assembly Changes – RCT Express 4.x

Includes assembly changes to the existing interior partition wall framing materials to better reflect current building design and costs.

NOTE:  No assembly changes were made for Mobile/Manufactured homes calculated with RCT Express 4.x. 

3.       Cost Localization Changes For The Northeast New Jersey Area – RCT 3.x, High Value 4.x, RCT Express 4.x

After reviewing current construction costs in northeast New Jersey, it was determined that our cost localization process for this area was being too heavily influenced by New York City. To more accurately represent the local market our primary focus was to decrease the influence from New York City and increase the influence of other New Jersey cities. The area most affected by this change will be from Tom’s River up along the coast through Brick and Middletown and then moving inland to the townships of Freehold and Jackson.

4.       Mobile-Manufactured Housing – 2020 Historical Depreciation Tables -RCT Main Street & MMH 3.3 and higher, RCT Express 4.x

Each year as part of the first quarter update, the Mobile Manufactured Home Historical Depreciation table is updated to reflect changes to the year-built range 1950 to 2021.

Non-Cost Data Changes:  RCT Express 4.x

1.       Updated Help Menu Files For The 1Q20 MMH Historical Depreciation Tables – RCT Express 4.x

Includes the yearly change to the MMH Historical Depreciation Table in the Help Menu files.

2.       Exterior Wall Covering Knowledge Table Changes in Canada – RCT Express 4.x

Based on internal analytics we are making the following exterior wall covering default changes: 

  • Postal codes P0A0A – P9Z9Z, year-built of 1799-1949, changed from “Brick, Solid” to “Siding, Vinyl”.
  • Postal codes P0A0A – P9Z9Z, year-built of 1950-1969, changed from “Brick on Masonry” to “Siding, Vinyl”.
  • Postal codes G0A0A – H9Z9Z, year-built of 1950-1969, changed from “Brick on Masonry” to “Siding, Vinyl”.
  • Postal codes J0A0A – N9Z9Z, year-built of 1950-1969, changed from “Brick on Masonry” to “Siding, Vinyl”.

NOTE:  No exterior wall covering knowledge table changes were made for Mobile/Manufactured homes calculated with RCT Express 4.x.

3.       Exterior Wall Framing Knowledge Table Changes in Canada – RCT Express 4.x

Based on internal analytics we are making the following exterior wall covering default changes:

  • Postal codes P0A0A – P9Z9Z, year-built of 1799-1949, construction types “Standard” and “Standard/Vintage”, changed from “Brick, Solid” to “Stud, 2 x 4”.
  • Postal codes P0A0A – P9Z9Z, year-built of 1799-1949, construction type “Vintage” have changed from “Brick, Solid” to “Framing, Rough Lumber”.
  • Postal codes P0A0A – P9Z9Z, year-built of 1950-1969, construction types “Standard” and “Standard/Vintage” have changed from “Brick on Masonry” to “Stud, 2 x 4”.
  • Postal codes P0A0A – P9Z9Z, year-built of 1950-1969, construction type “Vintage” have changed from “Brick on  Masonry” to “Framing, Rough Lumber”.
  • Postal codes G0A0A – H9Z9Z, year-built of 1950-1969, construction types “Standard” and “Standard/Vintage” have changed from “Brick on Masonry” to “Stud, 2 x 4”.
  • Postal codes G0A0A – H9Z9Z, year-built of 1950-1969, construction type “Vintage” have changed from “Brick on Masonry” to “Framing, Rough Lumber”.
  • Postal codes J0A0A – N9Z9Z, year-built of 1950-1969, construction types “Standard” and “Standard/Vintage” have changed from “Brick on Masonry” to “Stud, 2 x 4”.
  • Postal codes J0A0A – N9Z9Z, year-built of 1950-1969, construction type “Vintage” have changed from “Brick on Masonry” to “Framing, Rough Lumber”.

NOTE:  No wall framing knowledge table changes were made for Mobile/Manufactured homes calculated with RCT Express 4.x.

Non-Cost Data Changes:  High Value 4.3.x and 4.2.x

None

Non-Cost Data Changes:  Mainstreet and Mobile/Manufactured Housing (MMH) 

1.       Updated Help Menu Files For The 1Q20 MMH Historical Depreciation Tables – RCT Main Street / MMH 3.3 and higher

Includes the yearly change to the MMH Historical Depreciation Table in the Help Menu files.