Defined Regions
CoreLogic curates this monthly bulletin of regional construction cost insights, which are reflected in the CoreLogic Claims Pricing Database. We combine the current month’s pricing data with four common loss scenarios to create models illustrating market impacts that are applied across nine regions and compared month over month and year over year.
Our experts provide detailed analyses of changes and trends to provide additional insight into key drivers. View our Construction Database Pricing Methodology white paper to gain additional insight into how we populate cost values.
The CoreLogic Pricing Analysis and Delivery Team continues to research labor costs and industry best practices for all construction categories within the Claims Construction Cost Database. To standardize labor trade assignments in the CoreLogic Pricing Database, CoreLogic will continue implementing incremental monthly changes throughout 2024 for each respective trade category.
For the August 2024 Claims Construction Cost Database release, we standardized labor trades in the following categories: Tile; Mobile Homes; Awnings and Patio Covers; Landscaping; HVAC; Floor Covering; and Permits and Fees.
In September, we plan to align labor trade assignments in the Fireplaces; Concrete and Asphalt; Mitigation; Appliances; Doors; and Floor Coverings categories.
In the August Pricing Database, we will align labor trade assignments in the following categories: Tile; Mobile Homes Skirting and Setup; Awnings and Patio Covers; Landscaping; HVAC; Floor Coverings; Permit and Fees; and Exterior Furnishings.
Additionally, we will continue increasing subcontractor overhead and material markup allowances across all trades through most of 2024. These adjustments will result in single-digit upward movements in labor trade rates and material prices. These allowances reflect escalating subcontractor costs such as vehicle acquisition and maintenance, real estate expenses, and increased software and office expenses, as well as higher job-site material delivery charges. Customers will notice above-average labor rate adjustments in certain western-region markets through Q3.
Based on customer feedback and our research, we added Bozeman, Montana, to the list of available Claims Cost Database regions. We will continue enhancing pricing for this new region as we gather more feedback from customers and service providers operating there.
We will update the Claims Construction Pricing Database Methodology white paper in September or October to reflect additional considerations not previously outlined.
Line-Item Updates and Ongoing Refresh
The August 2024 Claims Construction Cost Database release will include refreshes of the Windows and Window Screen categories. In September, we expect to refresh the Labor, Miscellaneous, and Light Fixtures categories. We will continue the realignment process on a rolling monthly basis for all categories within the Claims Construction Cost Database, aiming to complete all categories by December 2024 or early Q1 2025.
We have completed additional adjustments for most paint-grade, MDF, polyurethane, and PVC trim items, now including filling/light sanding of nail holes and a caulking component for installation. Most stain-grade trim items will also include filling/light sanding of nail holes for installation. Customers requested these changes to accommodate the most likely installation components needed on a claim restoration project. Caulking as a stand-alone item remains available as a database action for situations requiring additional caulking or other actions that may not include a caulking component.
A full list of actions that include this new caulking component is available upon request, and we are providing these items to the Validate product for incorporation into existing rules as needed or requested.
Looking forward to September and October 2024, additional items will be added to the Claims Construction Cost Database to expand the selection of metal ribbed roofing panels, account for fortified roofing systems, and add additional quality grade selections for cabinetry items, among other ongoing additions.
Fire/Lightning (Large Loss) Insights: 12-Month Trend
In this category, large loss claims are modeled from a typical fire loss where all components of a home’s construction are affected. Losses typically exceed $100,000.
- Year over year, this loss scenario averages 12.1% higher due to increases in drywall and general labor rates as well as drywall materials. However, decreases in framing and finish carpentry materials have offset some of these gains.
| Material | Average Change from August 2023 Pricing |
| Drywall Labor | 7.8% |
| Labor | 19% |
| Drywall Materials | 8.5% |
| Finish Carpentry Materials | -1.7% |
| Framing Materials | -8% |
- Since last month, the fire/lightning loss scenario increased by an average of 2.2%. The Gulf Coast, Midwest, and Southwest regions have all gained 2.3%, while the Northeast and Northwest have risen slightly higher with a 2.4% gain.
Wind/Hail (Exterior/Roof) Insights: 12-Month Trend
This category represents losses due to wind and/or hail weather activity. Restoration from this damage requires roof replacement, partial siding replacement, and accompanying accessories.
- From July 2 to July 29, 2024, storms with 1-inch or greater hail impacted 117 counties across 25 states. CoreLogic Weather Verification Services estimates that more than 253,600 homes may have been affected by hail associated with these storms. New York was hardest hit, with potentially 54,500 homes experiencing damage.
- Widespread damage caused by severe weather events continues to impact wind/hail loss scenario pricing, which averages gains of 17.2% year over year. The upward movement of roofing labor (12%), siding labor (25.9%), and roofing materials (3.2%) fuels this growth. However, reductions in fencing materials (6.8%) and siding materials (3.2%) tempered the increases over this year-long period.
- The Midwest (19%), Northeast (19%), Northwest (21%), and West Central (26%) regions experienced significant growth since August 2023.
Water (Interior Reconstruction) Insights: 12-Month Trend
Moderately complex losses are modeled for the interior water loss scenario using the bathroom as the origin of loss where a combination of replacement and repair of common household finishes is required.
- Prices for water (interior reconstruction) loss scenario increased by 4% monthly, with year-over-year growth averaging 14.4%. The table lists some influential categories driving this upward movement.
| Category | Average Change From August 2023 Pricing |
| Painting Labor | 10.7% |
| Cleaning Labor | 15.2% |
| Cabinetry Materials | 16.7% |
| Insulation Materials | 4.3% |
- Since August 2023, pricing for this loss scenario has increased at a faster rate in the Northwest (21%) and the West Central (24%) regions. This growth is due to greater-than-average increases in cleaning labor — 23.4% in the Northwest and 24.8% in the West Central regions — and painting labor — 18.5% in the Northwest and 24.8% in the West Central regions.
Water Mitigation (Drying) Insights: 12-Month Trend
Typical drying costs for a residential structure include water extraction, removal of wet material, and drying equipment usage.
- Pricing for the water mitigation loss scenario has increased significantly year over year, rising by an average of 11.1% across all regions since August 2023. The Northwest and the West Central regions have seen even higher increases or 17% and 22%, respectively.
- Rising labor rates for water mitigation technicians have driven this yearly increase, with average rates rising 7.8%. In the Northwest, labor rates surged by 14.3%, In the West Central region, they increased by 20% over the past 12 months.
- Month over month, the loss scenario and labor rates for water mitigation technicians have remained stable.
About CoreLogic Data Research
CoreLogic develops this report using up-to-date materials and labor costs. CoreLogic’s team of analysts continuously researches hard costs such as labor, material, and equipment, including mark-ups. CoreLogic updates its database every month accordingly.
Our research also covers soft costs, such as taxes and fringe benefits, for reconstruction work performed as part of the insurance industry. CoreLogic monitors demographics and econometric statistics, government indicators, and localization requirements, including market trends from thousands of unique economies throughout the U.S.
Other factors in this process include the following:
- Wage rates for more than 85 union and non-union trades
- Over 100,000 construction data points
- Productivity rates and crew sizes
- Building code requirements and localized cost variables
Additionally, we validate cost data by analyzing field inspection records, contractor estimates, phone surveys, and both partial and complete loss claim information.
Please complete the online form to provide feedback or request information on any items in our construction database. Please contact your sales executive or account manager for additional explanations or questions. A more detailed methodology explanation can be found in our Construction Database Pricing Methodology white paper.
About CoreLogic
CoreLogic is a leading global property information, analytics and data-enabled solutions provider. The company’s combined data from public, contributory and proprietary sources includes over 4.5 billion records spanning more than 50 years, providing detailed coverage of property, mortgages and other encumbrances, consumer credit, tenancy, location, hazard risk and related performance information. The markets CoreLogic serves include real estate and mortgage finance, insurance, capital markets, and the public sector. CoreLogic delivers value to clients through unique data, analytics, workflow technology, advisory and managed services. Clients rely on CoreLogic to help identify and manage growth opportunities, improve performance and mitigate risk. Headquartered in Irvine, Calif., CoreLogic operates in North America, Western Europe and Asia Pacific. For more information, please visit www-corelogic-com.corelogicdev.wpengine.com.
NOTE: The building material, labor, and other cost information in this bulletin is generated using research, sources, and methods current as of the date of this bulletin and is intended only to provide an estimated average of reconstruction cost trends in the specified general geographic regions of the United States. This cost information may vary further when adjusting claim values for specific property locations or specific business conditions.
