Reconstruction costs continue to rise in U.S., CanadaBy Trish Hopkinson | July 17, 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 July 2019 to July 2020.
U.S. cost increases a little slower
Total reconstruction costs, including materials and retail labor, increased 4.8% at the national level in the United States from July 2019 to July 2020, down slightly from the 5.0% growth seen from April 2019 to April 2020.
Reconstruction costs increased in all states, with the highest changes seen in Connecticut, Hawaii, and Washington at 8.3%, 7.9%, and 7.7%, respectively.
The materials component of costs showed increases in all categories, with carpet the highest at 5.1% and lumber edging into positive territory at 1.4%. On the labor side, drywall installer/finisher costs again saw the fastest rate of increase at 13.1%.
Cost growth rate accelerates in Canada
In Canada, at the national level, total costs increased 2.4% from July 2019 to July 2020, continuing a trend of accelerating cost growth. During the second quarter of 2020 (April through June), reconstruction costs grew just 0.7%.
All ten provinces experienced cost increases in the latest reporting period. Increases in Quebec and Alberta were highest at 4.2% and 3.8%, respectively, while Prince Edward Island and Saskatchewan had the smallest increases at 0.9% and 1.4%, respectively.
Lumber costs remained contrary to the overall materials trend, decreasing 1.9%. On the labor side, roofer costs grew the most at 7.4%.
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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