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.
December Pricing Insights
Updates from the CoreLogic Pricing Analysis and Delivery Team
Throughout 2023, the CoreLogic Pricing Analysis and Delivery Team researched and surveyed labor costs and best industry practices for exterior building envelope categories such as roofing, siding, soffit, fascia, and gutters. Based on this research and analysis, CoreLogic is implementing major changes to these categories for the December Pricing Database release. The adjustments are designed to realign labor trade assignments while standardizing the approach for exterior envelope trades in the CoreLogic Pricing Database.
Updates for Roofing, Siding & Soffit, Fascia, and Gutter
A new “Exterior Laborer” trade has been created. This new trade uses higher base labor rates and modeled overhead costs associated with exterior building product action “Tear Out.”
All applicable line items in the “Roofing”, “Siding & Soffit”, “Fascia”, and “Gutter” categories now include an “Exterior Laborer.” In many cases, this trade replaces the previous trade assignment of “Laborer.”
Roofing Only Updates
All roofing actions are aligned to reflect a “Roofer,” “Roofer and Exterior Laborer,” or “Exterior Laborer.”
Siding & Soffit, Fascia, Gutter Only Updates
- A new “Exterior Finishes Installer” trade has been created. This new trade uses higher base labor rates and modeled overhead costs associated with exterior building product actions “Remove,” “Replace,” “Remove/Reset,” and “Reset.”
- All “Siding and Soffit,” “Fascia,” and “Gutter” category actions are aligned to reflect an “Exterior Finishes Installer,” “Exterior Finishes Installer and Exterior Laborer,” or “Exterior Laborer.”
The changes to the exterior categories resulted in double-digit labor rate increases in every region in U.S. and Canada markets for the December 2023 release. These adjustments reflect researched market conditions for the respective trades. The CoreLogic Pricing Analysis and Delivery Team continues to review additional categories and anticipates similar labor trade enhancements to the “windows” category in the Q1 2024 timeframe.
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.
- Year-over-year pricing for the fire/lightning loss scenario is 2.4% higher on average. The Central, Gulf Coast, Midwest, Northeast, and West Central regions exceeded December 2022 pricing at 3%. Month to month, the loss scenario moved less than 0.8% across all regions.
- Most material components experienced slight adjustments (less than 1%) this month. Electrical components and tiling materials were the exception, and pricing for these two categories dropped 1.4% and 1.1%, respectively. Framing materials on average moved +/- 0.7% this month except in the Northwest and Southwest where prices moved +/- 1.5% and +/- 2%, respectively. Framing and rough carpentry is 30.5% below December 2022 pricing and continues to drive overall pricing for this scenario.
- Labor for this loss scenario continues to remain stable month over month. Compared to December 2022, labor rates are elevated by 4.6%. Two regions, the Northwest (7.5%) and West Central (9.6%), have general labor rates that are higher than this time last year.
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.
- The frequency and magnitude of hail events is finally decreasing. During the period from Oct. 20 through Nov. 6, hail greater than 1 inch impacted six states and just under 73,000 residential properties. CoreLogic Weather Verification Services reported that nearly 34,100 of those homes were in Dane and Wood Counties in Wisconsin where the path of a storm from Oct. 23 to Oct. 24 brought hail greater than 1 inch. Scott county, Minnesota was also affected by the Oct. 24 storm, with over 7,400 homes located in the path of hail greater than 1 inch. There has been little hail activity of note after Oct. 24.
- All regions averaged 11.9% higher than December 2022 pricing, with the Midwest and Northeast 15% higher than last year’s levels. Month over month, this scenario is elevated by 7.8% on average, across all regions.
- Fencing, roofing, and siding material costs moved on average +/- 1% this month. However, compared to this time last year, fencing is 22.1% lower.
- Compared to December 2022, roofing labor rates are on average 8.5% higher while siding labor rates are 17.9% higher. Monthly, siding labor increased 2.8% on average, with the Midwest and Northeast increasing 20% and 18%, respectively.
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.
- Water interior reconstruction pricing has stabilized with less than 1% change across all regions in December 2023. Compared to the same time last year, the scenario is on average 5.6% higher. The East Coast, Gulf Coast, Midwest, Northeast, and West Central regions are above this average at 6% year-over-year.
- Drywall materials increased this month by less than 1% on average. However, costs in the Midwest (1.3%) and Southeast (3.7%) exceeded this average. In the yearly comparison, drywall is 13.2% higher than December 2022, with elevated pricing in the East Coast (16.8%) and Southeast (15.6%).
- Cleaning labor is, on average, 4.6% higher than December 2022, except in the Northwest (7.5%) and West Central (9.6%).
Water Mitigation (Drying) Insights: 12-Month Trend
Typical drying costs for a residential structure include water extraction, wet material removal, and drying equipment use.
- This month the water mitigation loss scenario has increased 2.2%, ending the trend of negligible movement (+/-1%) that started in July 2023. The average yearly development is 5.8% over December 2022 prices. Regionally, the Gulf Coast and Midwest have increased by 6%, the Northwest by 7%, and the West Central region by 8%, surpassing the year-over-year average.
- These same two regions, also exceed the year-over-year average remediation tech rates. Rates in the Northwest were 5.8% higher and rates in the West Central region were 6.5% higher than in Nov. 2022.
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.corelogicstg.wpengine.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.
