Reconstruction costs rising at faster rates in U.S., CanadaBy Trish Hopkinson | April 16, 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 April 2019 to April 2020.
U.S. cost increases accelerate
Total reconstruction costs, including materials and retail labor, increased 5.0% at the national level in the United States from April 2019 to April 2020, up from the 4.1% growth seen from January 2019 to January 2020.
Reconstruction costs increased in all states, with the highest changes seen in Hawaii, Rhode Island, and Washington, at 8.14%, 7.7%, and 7.6%, respectively.
The materials component of costs showed a continuing decline in the lumber category, at negative 1.5%, while paint costs increased again, at 6.4%. On the labor side, drywall installer/finisher costs again saw the fastest rate of increase, at 12.3%.
View the full report and map for the United States.
Cost growth rate turns upward in Canada
In Canada, at the national level, total costs increased 2.1% from April 2019 to April 2020, reversing a pattern of slowing cost growth. During the first quarter of 2020 (January through March), reconstruction costs grew just 1.2%.
All ten provinces experienced cost increases in the latest reporting period. Increases in Quebec and Manitoba were highest, at 3.7% and 3.2%, respectively, while Prince Edward Island and New Brunswick had the smallest increases, at 1.01% and 1.42%, respectively.
Lumber costs remained contrary to the overall materials trend, with a negative 4.1% 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.
Tagged with: ,