Home Replacement costs are HIGH! $200-300/Square Foot

I received a note in the mail today from my homeowners insurance company in reference to my 2 Family in Worcester.

Key Takeaways

A couple takeaways:

• Property Replacement Cost estimates are up 15-21% year over year.

• Material cost increases:

  • Copper wire: +156%

  • Lumber: +41%

  • Plywood: +88%

  • PVC pipe: +45%

  • Labor cost: 5-7%

• Local construction cost estimates are $200-300/SF. WOW!

Yes, check your insurance coverage.

For the last 6 months, the cost per SF for a multifamily in Worcester was $163.

Sounds like it is a deal to get all of these materials in place for that price point.

Might be worth buying a place and fixing it up!

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