Chapter 4:Property Insurance
1994-1999 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. Below are average percentage changes for construction costs in Ohio and the US. As an example, a residential home built in 1994 for $100,000 in Ohio would cost approximately $111,300 to build in 1999 ($100,000 x 1.113, which is the factor for 11.3%).

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.
A study by the National Immigration Forum, based on 1996 US Census and Current Population Survey statistics, found that more than 60% of immigrants to the US owned homes within 20 years.
(The Daily Reporter, 7/9/99)
Ohio Construction Costs
Percent Change
From . . . .To Residences Apartments, Hotels & Office Buildings Commercial & Factory Buildings All Types Combined
Jan. 1998 Jan. 1999 1.2 1.1 0.6 0.9
Jan. 1997 Jan. 1999 3.9 3.7 3.4 3.7
Jan. 1996 Jan. 1999 6.0 6.0 6.9 6.3
Jan. 1995 Jan. 1999 8.0 8.4 8.6 8.3
Jan. 1994 Jan. 1999 11.3 11.5 11.4 11.4
US Construction Costs
Percent Change
From . . . .To Residences Apartments, Hotels & Office Buildings Commercial & Factory Buildings All Types Combined
Jan. 1998 Jan. 1999 1.7 1.5 0.9 1.4
Jan. 1997 Jan. 1999 4.3 4.1 3.6 4.0
Jan. 1996 Jan. 1999 6.4 6.3 7.1 6.6
Jan. 1995 Jan. 1999 8.8 8.8 9.1 8.9
Jan. 1994 Jan. 1999 12.6 12.4 12.3 12.4

Source: Written permission was granted by the owner of the copyright, Thomson Publishing Corporation, Stamford, CT, prior to its reproduction in its entirety in this guide.
©1999 E. H. Boeckh, A Division of Thomson Publishing Corporation