Reconstruction cost trends diverge between U.S., CanadaBy Trish Hopkinson | January 13, 2020
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 January 2019 to January 2020.
U.S. cost increases move upward
Total reconstruction costs, including materials and retail labor, increased 4.1% at the national level in the United States from January 2019 to January 2020, up from the 3.4% growth seen from October 2018 to October 2019.
Reconstruction costs increased in all states, with the highest changes seen in Rhode Island, Washington, and Connecticut, at 7.2%, 7.0%, and 6.2%, respectively.
The materials component of costs showed a continuing decline in the lumber category, at negative 6.3%, while paint costs increased again, at 5.9%. On the labor side, drywall installer/finisher costs again saw the fastest rate of increase, at 9.2%.
Cost growth rate declines again in Canada
In Canada, at the national level, total costs increased 1.7% from January 2019 to January 2020, marking another decline in the cost growth rate. During the fourth quarter of 2019 (October through December), reconstruction costs grew just 0.2%, consistent with the third quarter.
All ten provinces experienced cost increases in the latest reporting period. Increases in Newfoundland and Ontario were highest again, at 3.4% and 2.1%, respectively, while Prince Edward Island and Saskatchewan had the smallest increases, at 0.6% and 0.7%, respectively.
Lumber costs were contrary to the overall materials trend, with a negative 5.0% 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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