Verisk Insurance Solutions released its 360Value® Quarterly Cost Updates on reconstruction costs for the first quarter of 2017. The reports offer an overview of current reconstruction cost trends at the national and state/province level for the United States and Canada.
At the U.S. national level, reconstruction costs continue to edge upward. Since January 2016, overall reconstruction costs increased 2.4 percent in the United States. As the housing market recovers, annual reconstruction cost increases broke the 2 percent mark for the first time in a year. Since October 2016, reconstruction costs increased 0.8 percent in the United States.
Overall, from January 2016 to January 2017, rate changes in the states were fairly stable, rising slowly at a consistent pace. The top nine states with the highest cost increase rates (greater than 3 percent) were scattered throughout the West (New Mexico and Washington), northern Midwest (Minnesota and Wyoming), Midwest (Kansas and Missouri), the Northeast (New York and Vermont), and only Washington, D.C., in the South. The South was the slowest-growing region in terms of overall cost increases. View the full report and map for the United States.
Canadian provinces see increases
In Canada, all ten provinces again experienced reconstruction cost increases. At the national level, reconstruction costs increased 2.1 percent from January 2016 to January 2017. This is the slowest rate of increase in the past four years.
During the fourth quarter of 2016, reconstruction costs went up 0.7 percent. View the full report and map for Canada.
About 360Value Quarterly Cost Updates
360Value Quarterly Cost Updates provide current, localized, and detailed cost data on reconstruction labor and building materials—information that’s essential for creating reliable, component-based replacement cost estimates. The reports feature detailed graphics that make the information easy to understand and use. You get information on six key types of materials and six top labor categories. For more information, visit the 360Value website or contact your Verisk Insurance Solutions representative.
Scott Amussen is vice president of property products for Verisk Insurance Solutions–Underwriting. He was an assistant vice president for Xactware’s 360Value. he can be contacted at email@example.com.