Pricing Updates
Verisk Industry Trends Bulletin Key Pricing Trends
This bulletin gives a brief overview of recent pricing trends in the property insurance, construction, and restoration industries.
As a reporter of market-specific pricing information for repairing or rebuilding structures and replacing personal property, Verisk conducts hundreds of thousands of industry surveys, and reviews millions of data points per year submitted through field estimates written by contractors and adjusters as well as electronic data feeds provided by retail merchants. This extensive library of research enables Verisk to provide a comprehensive report of important industry trends.
Pricing News — 2023 - 3rd Quarter
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 second quarter of 2023, Verisk observed changes in six key material categories. Paint Material had the largest quarterly increase of 1.02 percent. Interior Trim Material had the largest yearly increase, showing an increase of 14.18 percent. Lumber Material had the largest annual decrease of 28.86 percent since July 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 0.43 percent cost decrease in the second quarter of 2023 and a 1.59 percent cost decrease since July 2022.
Labor
Verisk’s Pricing Data Services team surveys thousands of contractors across the country each month to determine what they charge for labor. When looking at the most common trades, the labor cost of a Carpenter - General Framer had the largest quarterly percent change with a 2.25 percent increase, while the Concrete Mason had the largest annual change with an 11.51 percent increase.
The Retail Labor Composite Index report tracks a combination of several common trades, including floor covering, painting, and roofing. In the second quarter of 2023, the index showed a 1.82 percent cost increase, and since July 2022 the index showed an 8.58 percent cost increase.
The individual trades that contribute to the Retail Labor Index varied in their percent change over the quarter. When looking at all labor trades, the most significant quarterly change occurred in the labor cost of a Carpenter - Finish, Trim/Cabinet installer which increased 2.64 percent since April 2023.
Combined Trends
The Combined Labor 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 labor and materials makes up the majority of Verisk price list items. Tracking the percent change for the cost of these items provides a valuable gauge of the general market.
The Combined Labor and Materials report showed an increase of 0.98 percent in the second quarter of 2023 and a 3.51 percent increase since July 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 costs increased 0.86 percent over the second quarter of 2023 but have decreased by 26.07 percent since July 2022. Verisk Pricing Data Services carefully tracks fuel costs to ensure accurate pricing.
Lumber
Since April 2023, lumber prices have decreased by 8.14 percent. Sheathing materials have also decreased 12.29 percent from April 2023 to July 2023.
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 July 2022, the Basket of Goods Labor & Material report has shown an increase of 3.51 percent. When framing components are removed from this basket of goods, the report shows an increase of 7.11 percent.
Since July 2022, the Basket of Goods Material report has shown a decrease of 1.59 percent. When framing components are removed from this basket of goods, the report shows an increase of 7.03 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 download a copy of Verisk’s Property Report for the United States or Canada, please visit the Property Report page.
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 labor 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 the United States and will vary from local prices.