Reconstruction cost growth steadies after slowing last yearBy Trish Hopkinson | November 6, 2019
Verisk recently released its latest 360Value® Quarterly Cost Update, which offers an overview of current reconstruction cost trends at the national and state/provincial levels for the United States and Canada from October 2018 to October 2019.
U.S. cost increases hold steady
Total reconstruction costs, including materials and retail labor, increased 3.4 percent at the national level in the United States from October 2018 to October 2019, consistent with the 3.7 percent growth seen from July 2018 to July 2019.
Reconstruction costs increased in all states, with the highest changes seen in Washington, Maryland, and Oregon, at 5.8 percent, 5.3 percent, and 4.9 percent, respectively.
The materials component of costs continued a significant decline in the lumber category, at a negative 10.4 percent change, while paint costs increased sharply in June and September, for a total growth of 5.6 percent. On the labor side, drywall installer/finisher costs increased the most, at 9.2 percent.
Cost growth rate continues to decline in Canada
In Canada, at the national level, total costs increased 1.9 percent from October 2018 to October 2019, maintaining a pattern of declining cost growth rates. During the third quarter of 2019 (July through September), reconstruction costs grew very little, at 0.2 percent.
All ten provinces experienced reconstruction cost increases in the latest reporting period. Costs in Ontario and Newfoundland grew the most, at 3.8 percent and 3.7 percent, respectively, while Saskatchewan and Alberta had the smallest increases, at 0.5 percent and 0.8 percent, respectively.
As in the United States, lumber costs ran counter to the overall materials trend, with a negative 6.6 percent change.
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.
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