OREM, Utah, February 8, 2011 — Xactware’s 2010 Property Report for the United States reveals that the average cost to rebuild a home declined last year for the first time since the annual report debuted in 2005.
The 2010 Property Report for the United States shows that average reconstruction costs dropped 1.24 percent last year. With the exception of New Jersey, North Dakota, and Washington, D.C., each state’s reconstruction cost index decreased by the end of 2010. Nevada and Arizona reported the greatest declines: 4.03 and 3.8 percent, respectively.
“The struggling economy and depressed housing market had a remarkably strong effect on many construction costs,” said Mike Fulton, Xactware’s assistant vice president of Pricing Data Services. “Overall reconstruction costs dropped as demand for labor and materials diminished throughout 2010.”
The property report also shows that many building cost indicators, such as retail labor, drywall, roofing materials, and carpeting, decreased last year.
As a leader in claims estimating and pricing data services for the property insurance and restoration industries, Xactware compiles year-end property reports that provide insight on major trends in claims and construction activity. Xactware’s in-house pricing research staff, which has more than 400 years of combined experience in construction and restoration, gathered and analyzed all the data contained in the report. Xactware’s staff also tabulated construction material indexes using data collected from 430 U.S. markets to ensure a high degree of reliability in reported rate changes.
“The United States is still working its way through the worst economic downturn since the Great Depression,” said Fulton. “Local, independent research, such as the information contained in the property report, can help construction and insurance professionals understand critical trends and make informed decisions.”
In addition to details about reconstruction and building cost trends, the 18-page report includes these key findings using information reported to Xactware:
Visit www.xactware.com to learn more about the 2010 Property Report for the United States.
Xactware Solutions (Xactware) is a Verisk Analytics company that specializes in the property insurance, remodeling, and restoration industries. Xactware’s technology tools include software estimating programs for PCs and tablet PCs, as well as powerful online systems for replacement-cost calculations, estimate tracking, and data trending in real time. For more information about Xactware’s products and services, call Xactware at 1-800-424-9228 or contact us online.