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
Heading into 2025, the CoreLogic Pricing Analysis and Delivery Team continues to actively research and survey labor costs and best industry practices for all construction categories in the Claims Construction Cost Database.
CoreLogic will refresh line item and action descriptions for the Electrical, Structure Cleaning, and Excavation categories in January. In February, the company plans to update the Mitigation, Appliances, and Wallpaper & Wall Carpet categories. CoreLogic will continue realigning all categories monthly, targeting completion for all updates by Q2 2025.
CoreLogic has updated the Claims Construction Pricing Database Methodology white paper to include additional considerations not previously outlined.
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.
- Since January 2024, the fire/lightning loss scenario has risen by 12.9%, driven largely by the continued impact of drywall. The October drywall price adjustment has pushed costs higher, with drywall labor increasing 0.95% and general labor rising 0.71% month over month.
- Fire-related costs increased modestly by 0.13%, highlighting the ongoing influence of the drywall adjustment on both labor and materials.
- The October drywall price adjustment has significantly influenced material and labor costs over the past year, creating lasting effects on pricing trends in the months that followed.
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 trends drove a 15.3% rise in the loss scenario compared to January 2024. Siding labor increased by 17.6%, and roofing labor rose by 13.9%. Materials like fencing (10%), siding (4.2%), and roofing (2.3%) followed similar patterns, highlighting steady demand and supply chain pressures in exterior projects.
- Material costs adjusted upward by 0.69% month over month, with regional variations influencing the increase. The West Central and Northwest regions contributed the most significant growth at 25% and 20%, while the Southeast and Gulf Coast showed more moderate increases of 15% and 12%, respectively.
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.
- Labor and material costs grew steadily over the past year. Flooring labor rose 22%, with monthly growth rising 0.68%. Cleaning labor increased to 16.7%, reflecting a 0.61% month-over-month change. Insulation costs climbed 6.9%, driven by the industry’s focus on energy efficiency and sustainable building practices. These trends emphasize consistent demand and evolving priorities in the construction market.
- Material trends varied. Drywall costs rose 0.6% month over month due to the October price adjustment while flooring materials decreased by 1.2%. This likely reflects seasonal demand shifts or increased competition among suppliers. These changes highlight the ongoing impact of supply and demand patterns on reconstruction material 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 14.9% over the past year, and the West Central region led this trend, recording a 28% increase due to higher labor and operational costs. The Northwest followed with a 21% rise, while steady demand drove increases of 16% in the Southeast and 15% in the Midwest. The Southwest (13%), Northeast (14%), and East Coast (11%) experienced more gradual changes, while the Gulf Coast and Central regions saw steadier growth of 9% and 10%, respectively.
- Water mitigation labor costs increased 14.9% over the past year. Regions like the West Central and Southeast saw significant growth while the Gulf Coast maintained more stable trends.
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.
