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.
November Pricing Insights
The CoreLogic Pricing Analysis and Delivery Team recently completed in-depth research and development efforts focused on exterior labor. They are realizing research findings, and the team is implementing new trade crews for the siding, soffit, fascia, and gutter categories. They are also applying associated labor changes.
The team is additionally completing updates to the roofing category. “Exterior laborer” is a new trade that will be introduced and assigned to “Tear Out” only actions, along with other numerous updates.
These changes will be delivered in the December 2023 Pricing Database. Additional details will be provided in the December Claims Construction Bulletin.
No loss scenario pricing increased more than 1% this month except for interior reconstruction, which increased 2.6%. However, compared to November 2022 pricing, all loss scenarios have increased. Interior reconstruction has the highest year-over-year growth at 5.3%.
Material category pricing for insulation, paint, drywall, windows, and roofing all remain elevated over November 2022 costs. These material categories are major influencers on the annual pricing developments across the four loss scenarios, and the categories are explored in more detail later in the bulletin.
Since labor rates have remained stable for several months, the labor component for most line items is not as impactful on monthly loss scenario pricing. Compared to last year, all labor rates are elevated. With the season’s recent wind/hail activity, roofing labor rates remain significantly higher.
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.
- The year-over-year pricing for the fire/lightning loss scenario increased on average by 1.6%. The West Central region increased by 3%, and the Central, East Coast, and Gulf Coast by 2%. Monthly, there was a <1% average increase across all regions.
- Material components continue to have a major impact on the pricing for this scenario. Compared to November 2022, insulation and paint costs are elevated, rising 3.9% and 3.5%, respectively. These two categories have moved less than +/- 1% over the last month. A third category works to offset these increases. The year-over-year development for framing and rough carpentry is -33.2%, and it moved less than -1% month over month.
- Labor for this loss scenario continues to remain stable in November. Compared to last year at this time, labor rates are elevated at 4.6%. Two regions, the Northwest and West Central have general labor rates that are 7.5% higher and 9.6% higher, respectively, 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.
- From Sept. 24 through Oct. 24, 2023, significant-sized hail measuring 1-inch or more impacted 15 states and over 574,000 residential properties. CoreLogic Weather Verification Services reported that nearly 400,000 of those homes were in Texas. On Sept. 24, over 254,900 Texas homes were in the path of a storm with damaging hail larger than 1 inch. That same storm pelted 47,700 residences in Travis County, Texas with hail larger than 2 inches.
- With continued wind and hail events throughout the U.S., the loss scenario averages 4% higher than November 2022 pricing. Though all regions are elevated, the Central, Gulf Coast, and West Central pricing is 5% higher. Month over month, all regions are down slightly, at less than 0.1%.
- Roofer hourly rates is one labor category with the largest year-over-year increases, with costs averaging 9.3% higher. As expected, some of the hardest hit regions — Central, Gulf Coast, Midwest, and Southeast — have surpassed the average, gaining 9.9%, 12.1%, 9.5%, and 10.1%, 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.
- After several months of relative stability, the water interior reconstruction scenario pricing has increased by 2.6% month to month. From a year-over-year comparison, prices are 5.3% higher than November 2022 levels. Last month’s year-over-year development measured just over 2.7% higher than October 2022.
- Beyond elevated pricing for insulation and paint materials discussed earlier in the bulletin, drywall materials also contribute to the upward movement of this scenario. Drywall materials increased an average of 1.7% this month and are 14.2% higher than last year.
- Though most of the movement for this loss scenario is related to material costs, cleaning labor rates in the Northwest and West regions have surpassed November 2022 pricing by 7.5% and 9.6%, respectively.
Water Mitigation (Drying) Insights: 12-Month Trend
Typical drying costs for a residential structure include water extraction, wet material removal, and drying equipment use.
- Since July 2023, the water mitigation scenario has experienced little movement from month to month, and that trend continues for November 2023. Reviewing the yearly development, pricing for the scenario is up on average 3.9% over November 2022 prices, with both the Northwest (+5%) and West Central (+6%) surpassing the average.
- These same two regions, also exceed the year-over-year average remediation tech rates with the Northwest rates coming in at 5.8% and the West Central rates at 6.5% higher than November 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.
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 stage.corelogic.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.