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.
Pricing Insights
Throughout 2024 and into 2025, the CoreLogic Pricing Analysis and Delivery Team has continued to research and survey labor costs and best industry practices for all construction categories within the Claims Construction Cost Database. Based on this research and analysis, CoreLogic will continue standardizing labor trade assignments in the CoreLogic Pricing Database by implementing incremental monthly changes throughout 2024 and Q1 of 2025 to each respective trade category.
In December 2024, CoreLogic will complete the alignment of labor trades with final updates to the Labor Only, Miscellaneous, and Pools/Hot Tubs categories.
CoreLogic is refreshing line item and action descriptions for the Plumbing category in December. The January release will refresh the Electrical, Structure Cleaning, and Excavation categories. In December, CoreLogic also added the new sub-category Aluminum-Clad Wood Windows to expand the existing Windows category. The monthly realignment process will continue, with completion targeted for the end of Q1 2025.
Following Hurricanes Helene and Milton, CoreLogic continues to monitor market conditions and evaluate the need for additional pricing adjustments in southern states, including Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia.
Separately, CoreLogic is increasing material prices for drywall based on manufacturer price hikes scheduled for this quarter.
Lastly, we have updated the Claims Construction Pricing Database Methodology white paper this month to reflect additional considerations.
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.
- The fire/lightning loss scenario increased by an average of 11.9% compared with December 2023, primarily driven by higher drywall and general labor costs. Costs rose by 0.13% month over month, driven mainly by an annual drywall price adjustment that took effect in October. These increases will continue to drive costs, raising drywall labor costs by 8.6% and causing modest increases in other labor and materials.
- The October drywall price adjustment remains a key driver of recent cost increases, significantly impacting material and labor prices over the past year and influencing costs in the following months.
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.
- Labor and material costs have driven a 14.6% increase in the loss scenario compared to December 2023. Siding labor costs rose by 16.6%, and roofing labor increased by 12.7%. Material prices also climbed, with fencing up 9.5%, siding up 2.5%, and roofing up 2.3%. These changes highlight ongoing supply chain challenges and rising demand in construction, particularly for exterior repairs and improvements.
- The loss scenario grew by 0.22% month-over-month, reflecting a slower pace compared to the past year. Recent hurricanes in the Southeast have added pressure to material costs, influencing overall pricing trends.
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.
- Flooring labor increased to 21% over the past year, with monthly growth rising by 0.12%. Cleaning labor costs grew to 16%, showing a slight monthly uptick of 0.06%. Insulation costs rose to 6.8%, driven by higher demand for energy-efficient solutions as more projects emphasize sustainability and energy reduction. These trends highlight how construction demands and project priorities have shifted throughout the year.
- Material costs also changed significantly. The October drywall price adjustment drove a 0.6% month-over-month increase in drywall costs. Flooring materials, however, declined by 2.1%, likely due to seasonal demand shifts or heightened supplier competition. These trends reflect how demand, labor rates, and market dynamics continue to shape reconstruction costs.
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.
- Water mitigation costs rose 14.6% over the past year, with regional variations. The West Central region experienced the largest increase at 27%, driven by higher overhead costs and supply-and-demand imbalances in the labor market. The Midwest followed with a 14% rise, and the Southeast increased by 15%, likely due to storm activity and heightened seasonal demand. The Southwest and East Coast saw moderate growth of 12% and 11%, respectively. The Northeast reported a 13% rise, while the Gulf Coast and Central regions had smaller increases of 9%, reflecting relatively stable conditions for water mitigation services in these areas.
- Water mitigation labor costs also rose 14.6% compared to last year. The West Central region posted the most significant increase, while the Southeast showed notable growth, likely due to recent hurricanes and storms driving demand. The Gulf Coast saw a more modest rise, indicating steadier labor conditions in that region.
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.
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.
