Study - Initial Cost of Construction
Multi-Residential Structures

The objective of this study was to develop a construction cost model to accurately evaluate the relative construction cost of a multi-family building constructed using six different construction materials. The concept of multi-family would include traditional apartment type buildings, condominium style buildings, student housing, elderly housing, and others.

Prepared by: Walter G. M. Schneider III, Ph.D., P.E., MCP, CBO, CFO
Dr. Schneider is registered as a professional engineer in six states, and a International Code Council (ICC) Master Code Professional, and has been actively designing buildings for more than twenty-five years, working on projects that include commercial, single and multi-family residential, retail, and sports based projects. Dr. Schneider currently holds a certification as a registered Building Code Official in the Commonwealth of Pennsylvania and has been involved in the fire service for more than 30 years, both as an active firefighter and fire chief, and as a State Fire Instructor in the Commonwealth of Pennsylvania.

Patrick Riley, CPCU, ARM, CRIS - Vice President, Property & Casualty, USI Insurance Services LLC was added to the team to provide insurance cost factors for builders risk/GC liability insurance. The cost study has been revised to reflect insurance cost trends in the builders risk market over the past year.

"Like the property insurance market overall, the builder’s risk market has hardened significantly over the past several years. The hardening property insurance market has been driven by an increase in the frequency and severity of natural disasters along with the reduction in capacity and increasing prices in the reinsurance market. The hardening of the builders risk market has been driven primarily by an increased frequency of attritional losses and many large fires on wood-frame residential projects. Large wood frame projects have experienced the most severe impact over recent months, with few changes expected in the near future. The cost study has been updated to reflect these rate changes across building materials.

Not contemplated in the cost study is the long-term costs associated with certain building materials, including wood frame. These costs are incurred annually by building owners and will exist as long as the building is owned. In the current market, the cost to insure multi-residential structures from a Property perspective can be up to 4x higher for wood frame vs. masonry non-combustible."


Initial Study Report

> Initial Cost of Construction Multi-Residential Structures Study Report - 2017


Addendum Cities

Arizona
> Phoenix, Arizona - May 2018 Addendum
> Tucson, Arizona - May 2018 Addendum

California
> Los Angeles, California - May 2021 Insurance Update (August 2020 Addendum)
> Los Angeles, California - August 2020 Addendum
> Los Angeles, California - September 2017 Addendum
> Sacramento, California - September 2017 Addendum
> San Jose, California - September 2017 Addendum

Colorado
> Denver, Colorado - April 2022 Addendum

District of Columbia
> Washington, DC – Addendum August 2020 with June 2022 Updated Insurance Costs
> Washington, DC - August 2020 Addendum
> Washington, DC - May 2018 Addendum

Florida
> Tampa, Florida - May 2021 Insurance Update (August 2020 Addendum)
> Tampa, Florida - August 2020 Addendum
> Orlando, Florida - May 2021 Insurance Update (August 2020 Addendum)
> Orlando, Florida - August 2020 Addendum

Georgia
> Atlanta, Georgia - May 2021 Addendum with Insurance Information
> Atlanta, Georgia - March 2018 Addendum
> Savannah, Georgia - March 2018 Addendum

Hawaii
> Honolulu, Hawaii - November 2022 Addendum

Illinois
> Chicago, Illinois - October 2017 Addendum

Iowa
> Des Moines, Iowa - October 2017 Addendum

Kansas
> Kansas City, Kansas - November 2018 Addendum

Maryland
> Baltimore, Maryland - May 2018 Addendum

Massachusetts
> Boston, Massachusetts - November 2021 Addendum with Insurance Information
> Waltham, Massachusetts - March 2018 Addendum

Nebraska
> Omaha, Nebraska - May 2018 Addendum

New York
> Mineola, New York - June 2018 Addendum
> Syracuse, New York - March 2018 Addendum

North Carolina
> Charlotte, North Carolina - May 2021 Addendum with Insurance Information
> Charlotte, North Carolina - May 2021 Insurance Update (August 2020 Addendum)
> Charlotte, North Carolina - August 2020 Addendum
> Charlotte, North Carolina - April 2018 Addendum
> Raleigh, North Carolina - March 2018 Addendum

Ohio
> Toledo, Ohio - November 2018 Addendum

Oregon
> Portland, Oregon - May 2019 Addendum

Pennsylvania
> Lehigh Valley, Pennsylvania - October 2017 Addendum with June 2022 Updated Insurance Costs
> Lehigh Valley, Pennsylvania - October 2017 Addendum
> Philadelphia, Pennsylvania – Addendum August 2020 with June 2022 Updated Insurance Costs
> Philadelphia, Pennsylvania - August 2020 Addendum
> Philadelphia, Pennsylvania - October 2017 Addendum
> Pittsburgh, Pennsylvania – Addendum June 2021 with June 2022 Updated Insurance Costs
> Pittsburgh, Pennsylvania - October 2017 Addendum
> Harrisburg, Pennsylvania – Addendum August 2020 with June 2022 Updated Insurance Costs
> Harrisburg, Pennsylvania - August 2020 Addendum

South Carolina
> Columbia, South Carolina - March 2018 Addendum

Tennessee
> Knoxville, Tennessee - March 2018 Addendum

Texas
> Dallas, Texas - May 2021 Addendum with Insurance Information
> Houston, Texas - September 2017 Addendum

Virginia
> Richmond, Virginia - March 2018 Addendum


Cities Under The Canadian Code

Calgary
> Calgary, Alberta, Canada - November 2018 Addendum

Halifax
> Halifax, Nova Scotia, Canada - November 2018 Addendum

Montreal
> Montreal, Quebec, Canada - November 2018 Addendum

Regina
> Regina, Saskatchewan, Canada - November 2018 Addendum

Saskatoon
> Saskatoon, Saskatchewan, Canada - November 2018 Addendum

Toronto
> Toronto, Ontario, Canada - May 2021 Addendum with Insurance Information
> Toronto, Ontario, Canada - November 2018 Addendum
> Toronto, Ontario, Canada - October 2017 Addendum

Vancouver
> Vancouver, British Columbia, Canada - November 2018 Addendum

Winnipeg
> Winnipeg, Manitoba, Canada - May 2019 Addendum