1998–2003 Ohio and US Construction Costs

The cost of housing continues to rise, partly because of the market price of a home and partly because of the increase in home construction costs. To the right are average percentage changes for construction costs in Ohio and the US. As an example, a residential home built in 1998 for $100,000 in Ohio would cost approximately $110,400 to build in 2003 ($100,000 x 1.104, which is the factor for 10.4%).

Most insurance companies readily include an endorsement on homeowners insurance policies known as “Inflation Guard Protection,” which automatically adjusts each year the amount of insurance coverage provided on a home in accordance with similar construction cost factors.

Note: For US Construction Costs: Study is predicated on the following 20 major pricing areas: Atlanta, Baltimore, Birmingham, Boston, Chicago, Cincinnati, Cleveland, Dallas, Denver, Detroit, Kansas City, Los Angeles, Minneapolis, New Orleans, New York City, Philadelphia, Pittsburgh, St. Louis, San Francisco, and Seattle.

Source: Written permission was granted by the owner of the copyright, Marshall & Swift/Boeckh, Los Angeles, CA, prior to its reproduction in its entirety in this guide
©2003 Marshall & Swift/Boeckh

The percentage of homes carrying too little homeowners insurance dropped between 2001 and 2002, as did the amount of homes that were underinsured. The percentage of US homes that are undervalued fell to 64% in 2002 from 73% in 2001, while the percentage by which those homes were undervalued improved to 27% from 35%. (Marshall & Swift/Boeckh. MS/B, New Berlin WI)