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National average reconstruction costs increase by 1.51% in 2011


February 10, 2012   by Canadian Underwriter


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The national average for reconstruction costs grew by 1.51% in 2011, according to Xactware’s 2011 Property Report for Canada.
The increase in the overall cost to rebuild was related to a rise in the average cost of building and installation labour rates, the report found.
Alberta and Saskatchewan posted the highest average increases, at 3.3% and 2.49% respectively, with only Ontario reporting a decrease in average reconstruction costs.
Ontario and Quebec reported the highest, year-end median costs to rebuild premium-quality and economy- quality homes. For the third year in a row, Manitoba and Saskatchewan reported the lowest costs.
Material and labour costs increased slightly in 2011, pushing Xactware’s Material and Labour Index up by 0.89%. The index tracks repairs costs, not complete rebuild costs.
This marks the second straight year the index increased by less than 1%, according to the report.
The Combined Construction Labour Index, which measures changes in all labour trades, increased 0.91% in 2011. The cost of building materials used for common repair jobs grew by 0.87%, the report found.
Price changes for individual material and labour components in the index varied. The 2011 Lumber Index dropped 4.6% lower than 2010, and drywall dropped by 5.41%, according to the report.
Information about purchasing the report can be found at:
http://www.xactware.com/store/SelectCat.do?catId=202&prodsFound=2&category=Latest+Reports