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360Value Quarterly Cost Update
Q3 2016 United States
This report provides reconstruction cost trends at the national and state levels.
360Value® Quarterly Cost Updates are derived from building cost research
conducted by industry leader Xactware.
Property reconstruction costs
show modest annual increase
From July 2015 to July 2016, overall reconstruction costs increased 1.7 percent in the United States. During the
second quarter of 2016, reconstruction costs were up 0.6 percent. As the housing market has recovered, the rate
of increase for construction costs has been slowing. While all states experienced an annual increase in total
reconstruction costs, this marks the first time in the last five quarters when the rate has increased relative to the
previous quarter. Despite this trend reversal, reconstruction cost changes remain fairly low. In fact, only the District of
Columbia and Vermont broke the 4 percent threshold, with Vermont having the highest increase in the nation, at
4.6 percent. Hawaii experienced the lowest increase, at only 0.4 percent.
NH
WA
MT
VT
ND
OR
ME
MN
ID
NY
WI
SD
UT
CO
CA
AZ
IL
KS
NM
DE
WV
MD
VA
KY
DC
NC
TN
AR
SC
MS
TX
NJ
OH
IN
MO
OK
CT
PA
IA
NE
NV
AL
GA
LA
FL
HI
AK
0.00 – 0.99%
1.00–1.49%
2.00–2.99%
3.00–5.00%
Changes in reconstruction costs by state from July 2015 to July 2016
MA
RI
MI
WY
1.50–1.99%
Q3 2016 United States
360Value Quarterly Cost Update
Material Cost Analysis
At the national level during the past 12 months, overall costs for material composites that Xactware tracks increased
0.5 percent. During the second quarter of 2016, material costs increased 0.3 percent. During the past year, Xactware
identified changes to several material categories. Costs for some materials decreased during the period, with lumber
falling by 4.1 percent, interior trim costs down 1.7 percent, and carpet costs decreasing 0.7 percent. Drywall and
paint costs were largely unchanged. Roofing was the only category with a material increase (2.4 percent).
Positive Percentage
Negative Percentage
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
Roofing Composite
Paint Composite
Drywall Composite
Carpet Composite
Interior Trim Composite
Lumber Composite
-5%
-4%
-3%
-1%
-2%
0%
2%
1%
Lumber Composite
Interior Trim Composite
Drywall Composite
Carpet Composite
3%
Paint Composite
Roofing Composite
3%
2%
1%
0%
-1%
-2%
-3%
-4%
-5%
-6%
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
2016
FEB
MAR
APR
MAY
JUN
Cost changes for common building materials from July 2015 to July 2016 at the national level. The data is reported by composite, a grouping of
materials needed to complete a particular aspect of reconstruction.
JUL
360Value Quarterly Cost Update
Q3 2016 United States
Labor Cost Analysis
Overall retail labor rates increased 2.8 percent from July 2015 to July 2016, with all six of the common labor trades
showing increases. The quarterly change in overall retail labor costs was 0.7 percent. Rates for roofers increased
the most during the past year, by 5.7 percent, while rates for drywall installers increased 5.0 percent. Labor costs for
plumbers rose 2.5 percent, and costs for electricians and heating/AC mechanics rose moderately at roughly 2 percent
each. Carpenters–general framers was the common labor trade with the lowest increase, 1.2 percent.
Positive Percentage
0%
1%
2%
3%
4%
5%
6%
1%
2%
3%
4%
5%
6%
Roofer
Drywall Installer/Finisher
Plumber
Electrician
Heating/AC Mechanic
Carpenter–General Framer
0%
Carpenter–General Framer
Drywall Installer/Finisher
Roofer
Plumber
Electrician
Heating/AC Mechanic
6%
5%
4%
3%
2%
1%
0%
JUL
2015
AUG
SEP
OCT
NOV
DEC
JAN
2016
FEB
MAR
APR
MAY
JUN
JUL
360Value Quarterly Cost Update
About this report
Q3 2016 United States
360Value Quarterly Cost Updates are derived from building cost research conducted by industry leader Xactware
and validated at a highly localized level.
This report should not be used as the basis for underwriting,
coverage, rating, or renewal decisions, as replacement
costs vary dramatically at the individual property level.
Xactware employs a comprehensive research process
that includes real-time feedback on reconstruction
costs from tens of thousands of contractors and claims
adjusters, extensive material and labor cost surveys, and
analysis of 5 million actual damage repair estimates for
claims each year.
The data compiled in this summary is available in
Xactware’s Industry Trend Reports, an online reporting
tool that gives users an overview of market changes from
one area to another; national and state averages; and
price trends for roofing materials, drywall materials, and
much more.
Current, localized, and detailed cost information on
reconstruction labor and building materials is essential to
create reliable, component-based replacement cost estimates. Each quarter, updated reconstruction cost data is
incorporated into 360Value.
For more information or to subscribe to Xactware’s Industry Trend Reports, visit:
http://www.xactware.com/en-us/solutions/claims-management/industry-trend-reports/
For more information on 360Value, visit:
http://www.verisk.com/insurance/underwriting/property/360value-residential.html
1-800-444-4554, option 3.
verisk.com/360Value
© 2016 Insurance Services Office, Inc., Verisk Analytics and 360Value are registered trademarks and Verisk, Verisk Insurance Solutions, and the Verisk Insurance Solutions
logo are trademarks of Insurance Services Office, Inc. Xactware is a registered trademark of Xactware Solutions, Inc. All other product or corporate names are trademarks
or registered trademarks of their respective companies.
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