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 that are applied across nine regions and 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.
Pricing Insights
The CoreLogic Pricing Analysis and Delivery Team continues to research labor costs and industry best practices for all construction categories within the Claims Construction Cost Database. To standardize labor trade assignments in the CoreLogic Pricing Database, CoreLogic will continue implementing incremental monthly changes throughout 2024 for each respective trade category.
For the September 2024 Claims Construction Cost Database release, we standardized labor trades in the following categories: Fireplaces, Concrete and Asphalt, Mitigation, Appliances, Doors, and Floor Coverings. In October, we will align labor trade assignments for Toilet and Bath Accessories; Painting; Structure Cleaning; and Framing and Rough Carpentry.
In September, we plan to align labor trade assignments in the Fireplaces; Concrete and Asphalt; Mitigation; Appliances; Doors; and Floor Coverings categories.
As of September, we have completed the previously announced increases in subcontractor overhead, profit, and material markup. These allowances now reflect re-surveyed increases in subcontractor costs, such as vehicle acquisition and maintenance; real estate expenses; software and general office expenses; and job-site material delivery charges.
We will update the Claims Construction Pricing Database Methodology white paper in October to reflect additional considerations not previously outlined.
Line-Item Updates, New Options, and Ongoing Refreshments
In September 2024, we refreshed the Labor, Miscellaneous, and Light Fixtures categories. For October, we plan to refresh the HVAC and Demolition categories. We will continue the realignment process on a rolling monthly basis, targeting completion for all categories in the Claims Construction Cost Database by December 2024 or early Q1 2025.
We are also adding new items to expand the selection of metal ribbed roofing panels, account for fortified roofing systems, and introduce exceptional-quality grade selections for cabinetry, among other ongoing additions.
Looking ahead to October and November, we will add a new sub-category of Aluminum-Clad Wood Windows to expand the existing Windows category.
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 fire scenario serves as a strong indicator of macro-level trends across the overall CoreLogic pricing database due to the scope required to complete repairs on complex fire losses. Compared to September 2023, we have seen a 14.6% increase, with 2.2% growth in the last 30 days.
| Labor | Material | |||
| Prior Year (2023-2024) | Month to Month | Prior Year (2023-2024) | Month to Month | |
| Carpentry | 20.5% | 8.5% | -0.3% | -0.2% |
| Flooring | 20.1% | 6.5% | 4.1% | -0.9% |
| Exterior Finishes | 30.6% | 3.7% | 1.5% | 1.6% |
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.
- CoreLogic’s analytic experts have identified two critical areas of consideration for the wind/hail scenario: Roofing and Siding. These key drivers include multiple blended selections, including aluminum and vinyl siding for the Siding category, as well as 3-tab and architectural shingles for the Roof Covering category.
- Despite the specifics within these categories, the 12-month trend remains consistent. Labor increases have driven the overall scenario up by 22.5% compared with September 2023.
- Overall, these materials have remained relatively stable, but Exterior Finish labor, up 30.6% compared to 2023, now anchors this trend.
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.
- The Interior Reconstruction scenario has risen by 16.9% compared with 2023, and the scenario showed the largest movement in this month’s analysis with a 4% increase compared to August.
- Over the last 30 days, labor costs for flooring installation have driven this trend, rising by 6.5%. Material costs for drywall and insulation have also contributed, increasing by 0.6% and 2.4%, respectively.
- The western half of the U.S. has been a key driver, showing greater monthly increases in these trends than the central or eastern regions.
Water Mitigation (Drying) Insights: 12-Month Trend
Typical drying costs for a residential structure include water extraction, removal of wet material, and drying equipment usage.
- Water Remediation Technician labor, the primary driver of Water Mitigation, saw a significant increase early in 2024 but has shown little movement since, resulting in a 7.8% year-over-year increase.
- Materials have had less impact on this scenario, but they have shown an aggregate increase both over the past 30 days and when compared with September 2023.
- Overall, the Water Mitigation scenario has increased by 0.93% in the past 30 days and 12% compared with the previous year.
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 U.S.
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.
