Solutions

Commercial Product Bulletin

3rd 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 Q2 2020, the average for U.S. building materials increased by 0.5%.  For labor, the average wage rate increased by 0.5%, based on construction trade contracts that were renewed during the quarter.

     

    The average change for Canadian building materials increased by 0.8% over the quarter, for labor, the average wage rate increased by 0.1%, 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

 

Quarter

Year

Quarter

Year

Aluminum Conduit

1.0%

2.4%

1.1%

5.4%

Asphalt Shingles

0.7%

2.9%

0.2%

4.6%

Concrete Block

0.7%

2.9%

0.4%

2.9%

Drywall

-0.1%

0.5%

0.1%

2.5%

Felt Paper

0.3%

0.1%

1.3%

5.0%

Galvanized Pipe

0.5%

2.3%

1.6%

6.6%

Lumber

3.2%

-1.2%

1.4%

-6.1%

Plywood

0.5%

-8.8%

-1.5%

-8.0%

Ready Mix

1.0%

4.1%

2.2%

4.3%

Rebar

-0.1%

1.0%

-1.1%

-4.8%

Steel Deck

0.6%

0.7%

0.8%

4.3%

Steel Stud

0.6%

2.5%

0.9%

3.7%

Structural Steel

-0.8%

-3.3%

0.6%

2.2%

1/2″ Copper Pipe

-0.4%

-2.4%

1.5%

4.8%

 

National Average

Building Construction Index
Q2 2020

National AverageCommercialAgricultural
United States0.5%0.7%
Canada0.3%0.5%

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 Q1 2020, the average for U.S. building materials decreased by -0.2%, For labor, the average wage rate increased by 0.8%, 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

2Q183Q184Q181Q192Q193Q194Q191Q20
Aluminum Conduit3.12.01.01.71.40.10.60.6
Concrete Block0.91.20.20.81.10.40.81.0
Drywall3.21.61.2-0.3-0.10.30.7-0.5
Galvanized Pipe0.35.91.91.91.10.80.50.5
Ready Mix0.2-1.00.10.31.61.50.90.7
Rebar5.28.11.40.6-0.40.5-0.10.8
Steel Deck2.56.21.71.00.5-0.30.00.4
Steel Stud2.97.32.41.0-0.60.11.50.2
Structural Steel5.911.91.1-0.1-0.5-1.3-0.8-0.3
½” Cooper Pipe0.7-0.3-1.1-1.00.1-0.3-1.4-0.4

U.S. State by State

Building Construction Index
Q2 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

0.97%

1.35%

Arizona

0.87%

0.81%

Arkansas

0.31%

0.55%

California

0.38%

0.37%

Colorado

0.54%

0.86%

Connecticut

0.36%

0.54%

Delaware

0.27%

1.00%

District of Columbia

0.57%

0.40%

Florida

0.44%

0.78%

Georgia

0.26%

0.94%

Idaho

0.61%

0.80%

Illinois

0.61%

0.81%

Indiana

0.17%

0.35%

Iowa

0.20%

0.50%

Kansas

0.77%

0.95%

Kentucky

0.13%

0.62%

Louisiana

0.43%

0.53%

Maine

0.84%

1.07%

Maryland

0.31%

0.53%

Massachusetts

0.77%

0.95%

Michigan

0.26%

0.60%

Minnesota

0.79%

0.70%

Mississippi

0.55%

0.77%

Missouri

0.34%

0.62%

Montana

0.57%

1.05%

Nebraska

1.24%

1.19%

Nevada

0.91%

1.03%

New Hampshire

0.86%

1.10%

New Jersey

0.08%

0.50%

New Mexico

0.15%

0.42%

New York

1.05%

1.35%

North Carolina

0.26%

0.66%

North Dakota

1.09%

0.99%

Ohio

0.53%

1.00%

Oklahoma

0.46%

0.57%

Oregon

0.18%

0.26%

Pennsylvania

0.24%

0.67%

Rhode Island

-0.04%

0.40%

South Carolina

0.25%

0.25%

South Dakota

1.43%

2.00%

Tennessee

0.30%

0.50%

Texas

0.42%

0.59%

Utah

0.80%

0.60%

Vermont

1.08%

1.70%

Virginia

0.55%

0.87%

Washington

0.15%

0.55%

West Virginia

0.40%

0.57%

Wisconsin

0.28%

0.48%

Wyoming

0.60%

0.85%

Alaska

0.87%

0.83%

Hawaii

0.53%

0.60%

 
Q3 2020 Commercial Bulletin United States English
Q3 2020 Commercial Product Bulletin US Agriculture

Canada

The average change for Canadian building materials increased by 0.8% over the quarter, for labor, the average wage rate increased by 0.1%, based on construction trade contracts that were renewed during the quarter.

Canada Quarterly Material

Cost Changes

3Q18

4Q18

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

Aluminum Conduit

0.7

-0.5

1.6

1.8

1.9

1.5

0.8

1.1

Concrete Block

2.0

0.7

0.3

2.1

1.1

0.7

0.7

0.4

Drywall

3.4

1.1

2.1

2.0

1.2

0.8

0.3

0.1

Galvanized Pipe

-0.1

-0.3

0.5

1.9

1.2

1.9

1.6

1.6

Ready Mix

-3.7

-0.1

0.7

2.4

0.8

1.1

0.0

2.2

Rebar

7.4

1.2

0.1

-0.7

-1.6

-1.6

-0.6

-1.1

Steel Deck

0.8

0.3

0.1

1.1

0.9

0.8

1.7

0.8

Steel Stud

4.7

2.0

2.4

2.0

1.1

0.7

0.9

0.9

Structural Steel

11.5

0.9

0.8

-0.6

0.8

0.3

0.5

0.6

½” Cooper Pipe

0.2

0.0

1.8

2.2

0.4

1.0

1.8

1.5

 

Canada Province by Province

Building Construction Index

Q2 2020

 

Province

Commercial

Agricultural

Alberta

0.35%

0.31%

British Columbia

0.18%

0.77%

Manitoba

0.45%

0.44%

New Brunswick

0.04%

0.40%

Nova Scotia

0.56%

0.47%

Ontario

0.38%

0.52%

Quebec

0.32%

0.38%

Saskatchewan

0.29%

0.83%

Newfoundland and Labrador

0.82%

0.79%

Prince Edward Island

-0.87%

-0.70%

 
Q3 2020 Commercial Bulletin United States English
Q2-Commercial-Ag-fr-