Verisk Industry Trends for November 2022

Nationwide, construction costs continue to be unsettled.  New construction is slowing due to higher interest rates, inflation and consumer confidence being low, in addition to continued impact of supply and demand, distribution, etc.  Labor shortages continue to have an impact on construction costs as well.  The amount of new workers entering this industry are insufficient to keep up with demand; as such, labor continues to be an issue even with the permits for construction projects trending downward.

Pricing research for the November 2022 publication shows that average costs for labor and materials in the United States in claims and remodeling increased in key pricing components.  Since November 2021, the Drywall Material report showed the largest increase of 13.50 percent in the United States, while the 30-yr. Laminated Shingle Labor and Material report increased 12.29 percent, and the Common Material Only report increased 10.95 percent year over year.  In Canada, the 30-yr. Laminated Shingle Labor and Material report showed the largest increase of 14.05 percent, while Retail Labor Rates had the next largest increase at 9.32 percent. 

Since our October 2022 publication, the Drywall Material report showed the largest increase of 1.84 percent in the United States, while the 30-yr. Laminated Shingle Labor and Material report showed the largest increase of 0.92 percent in Canada. The Common Lumber Material continued to drop, decreasing 3.82 percent since October 2022, with a twelve month high of 45.78 percent in April 2022.

All reported percent changes are based on the averages that have been reported since either the October 2022 price list publication or from November 2021 to November 2022.  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.

Lumber Trend

Since November 2021, lumber prices have increased 4.25 percent in the United States and 5.52 percent in Canada.  Sheathing materials have followed a similar trend, showing an increase of 1.36 percent in the United States and 3.45 percent in Canada since November 2021. 

Lumber material declined 3.82 percent from October to November in the United States, marking the seventh straight month of decreases since reaching its largest peak for the year in April 2022. Lumber material declined 8.49 percent from October to November in Canada, marking the fifth straight month of decreases.  Although costs for lumber materials have been decreasing steadily, costs have still not reached pre-covid levels.

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 October 2022 publication, gasoline prices increased 1.56 percent in the United States and 5.53 percent in Canada. When compared to November 2021, gasoline prices have increased 11.40 percent in the United States and 12.90 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 0.55 percent in the United States and 0.64 percent in Canada since the October 2022 price list publication.  An increase of 12.37 percent was shown in the United States and 13.98 percent in Canada since the November 2021 price list publication.

The Top 200 Items by Total Use increased 0.47 percent in the United States and 0.70 percent in Canada since the October 2022 price list publication.  An increase of 10.85 percent was shown in the United States and 11.13 percent in Canada since the November 2021 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. 

United States

Canada

Changes to the November Price List

• CLN (Cleaning) - Items added for cleaning full and half louvered bifold doors.

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 writing estimates outside program work can return feedback by regularly running the feedback utility 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.