Pricing Updates

February General Updates

Pricing research for the February 2023 publication shows that average costs for labor and materials in the United States in claims and remodeling changed in key pricing components.  Since February 2022, the Drywall Material report showed the largest increase of 13.65 percent in the United States, while the 30-yr. Laminated Shingle Labor and Material report increased 11.46 percent.  In Canada, the 30-yr. Laminated Shingle Labor and Material report showed the largest increase of 13.99 percent. 

Since our January 2023 publication, the Retail Labor Rates report showed the largest increase of 0.66 percent in the United States and 0.50 percent in Canada.  The Common Lumber Material continued to drop, decreasing 3.92 percent in the United States and 1.53 percent in Canada since January 2023.

All reported percent changes are based on the averages that have been reported since either the January 2023 price list publication or from February 2022 to February 2023.  The information reported here is based on a national average, and it is important to note that actual changes will vary within each pricing market.  It is also important to remember that Verisk’s published pricing information is based on recently completed surveys and estimate transactions.

For more information about these trends over a longer period of time, read the Quarterly Pricing Trends or the Annual Property Report.

Basket of Goods Material

Construction material costs have experienced significant fluctuations in the last two years, but in recent months there has been a notable stabilization. Factors such as increased demand, supply chain disruptions, and weather-related events had previously contributed to the volatility.

Since August 2022 the average monthly change in the United States was close to zero at -0.17 percent, with a low of -0.73 percent and a high of 1.44 percent, while from January 2021 to August 2022 the average monthly change was 0.89 percent with a low of -4.26 percent and a high of 6.69 percent during that time period.

In Canada the average monthly change was -0.54 percent since August 2022, with a low of -3.69 percent and a high of 1.98 percent. From January 2021 to August 2022 the average monthly change was 0.62 percent with a low of -3.69 percent and a high of 5.77 percent.

Lumber Trend

Since February 2022, lumber prices have decreased 22.48 percent in the United States and 13.85 percent in Canada.  Sheathing materials have followed a similar trend, showing a decrease of 29.45 percent in the United States and 18.53 percent in Canada since February 2022. 

Local Market Conditions

Verisk makes every effort to ensure pricing information contained in this update represents market costs at the time of publication.  Since actual market prices can vary and change rapidly, and many factors can affect the cost of a project (including, but not limited to: labor, equipment, and material costs as well as the rates and application of sales tax), we strongly recommend customers monitor their local markets for any such changes and adjust their estimate pricing as deemed appropriate.

Gasoline Prices in the United States and Canada

Since the January 2023 publication, gasoline prices increased 8.25 percent in the United States and 5.62 percent in Canada.  When compared to February 2022, gasoline prices have increased 3.59 percent in the United States and 3.61 percent in Canada.    

Because gasoline prices can change rapidly, Verisk recommends estimators monitor their local costs to determine whether repair or construction costs are affected.  For further details, see the United States Department of Energy website.   

* Canada prices are per liter

Top 200 Items Trend

The Top 200 Items by Total Spend increased 0.36 percent in the United States and 0.27 percent in Canada since the January 2023 price list publication.  An increase of 11.02 percent was shown in the United States and 12.26 percent in Canada since the February 2022 price list publication.

The Top 200 Items by Total Use increased 0.32 percent in the United States and 0.28 percent in Canada since the January 2023 price list publication.  An increase of 9.40 percent was shown in the United States and 10.11 percent in Canada since the February 2022 price list publication.

The Top Items by Use represents the items that were the most used in claims coming through our system and the Top Items by Spend represents the items that had the highest total spend.

XactContents Pricing Update

Since the last price list update, the XactContents pricing team continued to improve the master item list in both the United States and Canada.  The contents team have added Canadian Tire as a new vendor in Canada.

United States

Canada

Changes to the February Price List

• ELE (Electrical) - Item added for humidity sensor/fan control switch.
• ELS (Electrical - Special Systems) - Item added to detach and reset security system key pad.

Customers can view price list modifications on the eService Center.  XactAnalysis customers can see this same report by selecting the Price List Changes report in the Industry Trend Reports. 

Pricing Feedback

Pricing feedback is one of the ways Verisk ensures that the reported cost information reflects actual market prices.  Estimators are encouraged to mark their estimates complete for program and non-program work to provide their pricing feedback information within Xactimate, XactRemodel, or XactPRM.  Visit our web page for more information about submitting pricing feedback or check out our Xpert Tip on how to submit feedback in Xactimate.

More Information

Verisk’s pricing database is the foundation for many of our products.  You can download a price list in Xactimate and XactRemodel, or assign a price list in XactPRM.   

For more information about managing price lists, click Help in any Verisk product.

Materials

Material costs are highly variable and are sometimes impacted by factors such as fuel costs, changes to industry practices, or natural disasters. Verisk closely monitors a wide variety of material costs across the country to ensure its price lists reflect any recent changes to pricing.

In the Fourth Quarter of 2022, Verisk observed changes in six key material categories. Interior Trim Material had the largest quarterly increase, showing an increase of 6.70 percent. Roofing Material had the largest annual increase of 24.87 percent since January 2022.  Lumber is still dropping, showing a decrease of 4.69 percent since January 2022. 

The Material Composite Index report tracks a combination of several commonly used material components, including floor covering, paint, and roofing among others. The index showed a 1.85 per cent decrease in the Fourth Quarter of 2022 and a 1.82 per cent increase since January 2022.

Labour

Verisk’s Pricing Data Services team also surveys thousands of contractors across the country each month to determine what they charge for labour. The individual trades that contribute to the Retail Labour Index varied in their percent change over the quarter. The most significant quarterly change occurred in the labour cost of a Flooring Installer which increased 4.79 percent since October 2022.  The Siding Installer had the largest annual change with a 15.41 percent increase. 

The Retail Labour Index tracks a combination of several common trades, including floor covering, painting, and roofing. In the Fourth Quarter of 2022, the index showed a 2.11 per cent cost increase, and since January 2022 the index showed a 9.35 per cent cost increase.

Combined Trends

The Combined Labour and Materials report is based on monthly building cost data published by Verisk. It comprises a set of commonly used items and may be used as an indicator of trends within the marketplace. This combination of labour and materials makes up the majority of Verisk price list items. Tracking the per cent change for the cost of these items provides a valuable gauge of the general market.

The Combined Labour and Materials report showed an increase of 0.17 per cent in the Fourth Quarter of 2022 and a 6.89 per cent increase since January 2022.

Fuel Costs

Fuel costs are extremely volatile and are a factor in item pricing. High oil prices can push up the price of some raw materials. Fuel prices have decreased 12.06 percent over the Fourth Quarter of 2022 and have increased 3.03 percent since January 2022. Verisk’s Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.

Year over year fuel costs in Canada are now close to zero, a level not seen since January 26th 2021. From 2021 to 2023 gasoline peaked at an increase of 65 per cent in Canada.

Lumber

During the Fourth Quarter of 2022 lumber prices have continued to decrease, showing a downward trend of 12.30 percent. Sheathing materials have also decreased 20.34 percent from October 2022 to January 2023.  However, since January 2021, lumber prices have increased by 13.16 percent.  

Basket of Goods

The Basket of Goods reports are also a good indicator of the impact that lumber costs have had on market pricing. Since January 2022, the Basket of Goods Labour & Material report has shown an increase of 6.89 percent. When framing components are removed from this basket of goods, the report shows an increase of 8.34 percent.

Since January 2022, the Basket of Goods Material report has shown an increase of 1.82 percent. When framing components are removed from this basket of goods, the report shows an increase of 4.54 percent.

Verisk is continually monitoring lumber materials and making warranted adjustments from focused surveys with suppliers for each monthly price list publication.

Where to Learn More

Annual Property Report

Verisk publishes annual property reports that focus on key trends during the previous calendar year. To order a copy of Verisk’s Property Report for Canada or the United States, please visit the Verisk Online Store.

Industry Trend Reports

Using Industry Trend Reports, Verisk customers can examine pricing trends on national, state or province, and local levels for key material and labour pricing changes in multiple trades. Trends can be viewed by the month or over extended periods of time. For more information about Verisk’s Industry Trend Reports, or to receive access to them, please contact your sales representative or call 1-800-424-9228.

Pricing Methodology White Paper

For more information about Verisk’s methodology for researching and publishing pricing information, please see the Pricing Research Methodology white paper on the eService Center.

Unless otherwise stated, the values reported in this bulletin are national averages for Canada and will vary from local prices.