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Residential Product Bulletin

4th 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 Q2 2020 to Q3 2020, the average for U.S. building materials increased 1.3%. For labor, the average wage rate increased 1.8%, based on construction trade contracts that were renewed during the quarter.
  • The average change for Canadian building materials was an increase of 1.0% over the quarter. Based on the construction trade contracts that were renewed during the quarter, the average labor wage rate increa
 

National Average

Residential Reconstruction Costs
3Q20 to 4Q20

 Quarterly Variance
United States1.46%
Canada0.57%
 

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. RCT Express® Cost Changes

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

From Q2 2020 to Q3 2020, the average for U.S. building materials increased 1.3%. For labor, the average wage rate increased 1.8%, 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:

 

United States4Q181Q192Q193Q194Q191Q202Q203Q20
1/2″ Drywall0.5%-0.2%0.0%0.4%0.4%-0.6%0.0%0.5%
Asphalt Shingles2.9%24%0.7%1.0%0.4%0.7%0.5%0.5%
Romex Wire-3.3%-2.4%-0.5%-1.6%-3.0%-1.1%-0.8%1.2%
1/2″ Plywood-5.3%-6.9%-5.0%-4.5%-3.0%-1.9%1.4%4.7%
2×4 Lumber-5.0%-8.2%-5.7%-2.8%-1.0%1.2%3.3%4.6%
R-13 Fiber Batt Insulation2.2%0.5%1.6%0.8%1.7%1.7%2.6%1.8%
1/2″ Copper Pipe-1.6%-0.5%0.5%-1.0%-1.2%-0.1%-0.7%0.0%
Ready Mix0.1%0.3%2.3%1.1%0.7%0.6%0.9%0.5%
Felt Paper0.7%-0.1%-0.7%-0.1%0.4%0.1%0.2%0.3%

United States Cost Variances by State

Residential Reconstruction Costs
3Q20 to 4Q20

StateQuarterly Variance
Alabama1.55%
Alaska1.27%
Arizona2.25%
Arkansas0.94%
California1.16%
Colorado0.91%
Connecticut1.33%
Delaware2.79%
Florida0.88%
Georgia2.01%
Hawaii1.75%
Idaho2.49%
Illinois0.98%
Indiana1.04%
Iowa1.83%
Kansas1.69%
Kentucky1.16%
Louisiana1.80%
Maine1.88%
Maryland1.02%
Massachusetts1.77%
Michigan1.27%
Minnesota1.94%
Mississippi1.35%
Missouri1.07%
Montana1.84%
Nebraska1.08%
Nevada1.69%
New Hampshire2.23%
New Jersey2.10%
New Mexico1.24%
New York1.67%
North Carolina1.68%
North Dakota1.67%
Ohio1.32%
Oklahoma1.24%
Oregon1.45%
Pennsylvania1.31%
Rhode Island1.43%
South Carolina1.21%
South Dakota1.50%
Tennessee1.30%
Texas1.51%
Utah2.13%
Vermont2.12%
Virginia1.95%
Washington1.21%
West Virginia1.06%
Wisconsin1.16%
Wyoming1.66%
Q4 2020 Residential Product Bulletin United States

Canada

Canada RCT Express ® Cost Changes

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

From Q2 2020 to Q3 2020, the average change for Canadian building materials was an increase of 1.0% over the quarter. For labor, the average wage rate increased 0.3% 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:

 

Canada4Q181Q192Q193Q194Q191Q202Q203Q20
1/2″ Drywall1.3%1.3%2.7%1.1%0.4%0.2%0.3%0.2%
Asphalt Shingles0.6%0.8%1.0%1.5%1.9%0.9%0.2%0.1%
Romex Wire-0.5%0.7%-0.2%0.6%-0.6%0.0%0.4%0.6%
1/2″ Plywood-5.0%-4.4%-3.1%-3.2%-2.1%-1.4%-1.3%1.3%
2×4 Lumber-4.1%-6.6%-5.9%-4.4%-2.4%0.3%2.0%3.8%
R-13 Fiber Batt Insulation1.3%1.5%1.5%2.1%2.3%2.3%1.7%2.6%
1/2″ Copper Pipe0.3%2.2%1.8%0.4%1.4%1.7%1.2%0.4%
Ready Mix0.2%0.7%2.5%1.0%0.8%0.7%2.1%1.5%
Felt Paper0.8%0.6%0.8%1.3%1.5%1.2%1.1%0.6%
 

Canada Cost Variances by Province

Residential Reconstruction Costs
3Q20 to 4Q20

ProvinceQuarterly Variance
Alberta0.42%
British Columbia1.11%
Manitoba0.01%
New Brunswick1.06%
Newfoundland0.14%
Northwest Territory0.91%
Nova Scotia0.14%
Ontario0.55%
Prince Edward Is.1.36%
Quebec0.43%
Saskatchewan0.64%
Yukon Territory0.93%
Q4 2020 Residential Product Bulletin Canada En

Whats New

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

Cost Data Changes: RCT Express 4.x, High Value, Main Street/MMH

  •  The 4th 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.
  •  CoreLogic is aware of increasing lumber prices currently happening in the United States. Please note that the Q4 2020 delivery represents the change in material and labor as of September 1st, 2020. Our research shows that lumber increases started in the second half of September. Therefore, if lumber prices continue to increase through the end of the year the cost increases will not be fully realized in the Q4 2020 delivery but the Q1 2021 delivery. CoreLogic researches cities throughout the United States and Canada on a rolling monthly basis and provides updated costs for the entire United States and Canada on a quarterly basis. The Q4 2020 delivery is the change in costs from Q3 2020, which represents material and labor costs as of June 1st, 2020. CoreLogic will provide any additional communications as needed as we continue our research.

 New Porcelain Roof Material Selection Added – RCT Express 4.x

  • “Tile, Porcelain”
  • This new material was added to reflect the increasing popularity of this type of roof covering.
  • This material selection is not available for Mobile/Manufactured homes.

Roof Cover Material Changes For High Wind Areas – RCT Express 4.x

  • Composition changes to roof covering materials used in high wind areas.
  • Changes were made to comply with the 7th Edition (2020) Florida Building Code.

Material Changes For “Kitchen, Commercial” – RCT Express 4.x

  • Composition changes to this material selection to better represent the current costs for a commercial-type kitchen in a residential home.
  • This is an existing material selection and is not available for Mobile/Manufactured homes.

Non-Cost Data Changes:  RCT Express 4.x

  • Help File Added For New Material Selection

    “Tile, Porcelain:
    Roof tiles made of porcelain. Tiles have a flat profile and are manufactured to mimic clay, slate, or wood. Included in Cost: Porcelain roof tile, fasteners, underlayment, furring/batten strips, hip and ridge tiles, flashing, gutters, downspouts, and installation labor. Enter a percentage between 0 and 100.“

Graphic User Interface Change For New Material Selection

  • Tile, Porcelain” added to the “Roof Cover” drop down list.

Non-Cost Data Changes:  RCT High Value

  • There are no Non-Cost Data changes for 4Q20.

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

  • There are no Non-Cost Data changes for 4Q20.