Construction cost index for residential buildings
Updated: 12 May 2023
Next update: 13 June 2023
|Change from last month, per cent||Change from last year, per cent||Index|
|Residential buildings, labour cost2||0.0||4.5||122.3|
|Residential buildings, materials||1.3||6.0||165.2|
|Detached houses of wood||0.5||4.6||143.1|
|Detached houses of wood, materials||1.1||4.3||168.5|
|Detached houses of wood, other building work||0.5||4.4||147.4|
|Detached houses of wood, other building work, materials||1.1||3.5||172.3|
|Multi-dwelling houses, materialsr||1.5||8.7||159.5|
|1Construction cost index for residential buildings is weighted by index for detached houses of wood and index for multi-dwelling houses.|
|2Wage statistics for the 1st, 2nd, 3rd and 4th quarter are includeded in the construction cost of May, August, November and February respectively.|
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The latest available figures are for April 2023. Figures for May are released around June 12.
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About the statistics
The index measures the monthly cost development of residential building construction works. The cost indices are not affected by changes in productivity or changes in profit margins. It is primarily used for contract escalation in construction contracts.
Definition of the main terms
The CCI measures the changes in the prices of input factors to the construction process of residential buildings. CCI ignores gains in productivity and changes in profit margins
Labour cost = direct labour costs an indirect labour costs per hour. Direct labour costs include wages and salaries, remuneration and other cash payments. Indirect labour costs include salaries in kind, costs for health and safety, social contributions, training costs and taxes on labour
A Laspeyres price index is a price index where the weights remain fixed. A chained Laspeyres price index is an index linked by Laspeyres indices with different sets of weights.
Definition of the main variables
Price: Actual sales prices to the construction industry. Price on the 15 th of each month exclusive VAT.
Name: Construction cost index for residential buildings
Topic: Prices and price indices
Division for Housing, Property, Spatial and Agricultural Statistics
National level only.
Monthly. Published the 12th of the month, around 12 days after the current month.
The statistics are reported to Eurostat.
Monthly price observations for goods and services are stored on UNIX.
The indices are published since 1978.
The CCI is used to regulate the cost of construction works. At Statistics Norway the CCI is used as deflator in the National Accounts. The subscribers are developers, contractors, builders, technical installation firms, manufacturers of prefabricated houses etc.
No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 8 am. Prior to this, a minimum of three months' advance notice is given in the Statistics Release Calendar
Principles for equal treatment of users in releasing statistics and analyses
Some data are collected from the Consumer Price Index, Wage Statistics, Cost Index for Road Goods Transport and NTNU's Cost Index for Machinery.
The construction cost index for residential buildings is an important input to the National Accounts.
Data from the survey are used in the calculation of the Construction Cost Index for Civil Engineering works, the Consumer Price Index and the Price Index for Wholesale Trade.
Act of Offical Statistics and Statistics Norway (Statistics Act) from 2019-06-21 § 10, decision on the duty to provide information and § 20, compulsory fines
Construction cost index for residential buildings is regulated through EC 1165/98.
Construction cost indices measures the price developments of material, labour, transport, plant and other types of input factors in the production of residential buildings, i.e. costs incurred by the contractor/producer carrying out the construction work. It is two different types of information to be collected about the input factors, the percentage of each component (weights) and the prices. The weights are compiled every tenth year through cost studies of representative buildings. The prices are measured monthly.
The material prices are collected by means of questionnaires, which are sent to the suppliers to the construction industry (mainly wholesale companies).
The labour costs are based on Statistics Norway's quarterly Labour cost index, based on full cencus data from a-meldingen.
Machinery costs indices calculated by NTNU
Transport costs indices compiled by Statistics Norway.
The material prices are collected by means of questionnaires, which are sent to the outlets on the 15th of each month. The deadline is 10 days after.
The prices are put through tests, which identify observations with large price changes from the previous month. Prices are also checked when sorted by item and when items are aggregated into groups. Sub-indices and item-indices are checked against time-series that are published earlier and comparisons with other statistics.
The construction cost indices are calculated as Laspeyres indices. A new weight basis was adopted in January 2000. The weights are based on calculations and accounting data from 7 apartment building projects and 4 detached house projects. Projects which in size and standard were close to the average from Statistics Norway's surveys of detached houses and multi-dwelling units completed in 1997 and 1998. The weight basis was prepared in accordance with the Norwegian Standard for specification of costs in building project NS 3453.
The overall building cost index for houses comprises the two indices for detached houses and apartment buildings. The weights that are used are square metre utility floor space for dwellings under construction multiplied with the average price in kroner per square metre utility floor space.
Reporting and recordkeeping burden
An outlet uses an average of 17.5 minutes every month to fill out the questionnaires, which means that the sample of outlets use a total of 1 050 hours or 131 days of work each year.
Collected data are subject to confidentiality specified in the Statistics act, §7.
The index goes back to 1978. Aspelin - Stormbull AS calculated construction cost indices for residential buildings from 1932 to 1978.
The outlets might, for the sake of convenience, copy the previous month's prices instead of the correct prices when filling out the questionnaires. The most obvious cases of this kind are revealed in a manual check carried out when receiving the questionnaires. When a product or service is no longer sold the outlets are instructed to find a replacement and mark it in the questionnaire. If they fail to do so, the difference in price between the old product and the replacement will incorrectly be registered as a price change of the old product.
Skewness: The sample of goods and services is updated every tenth year. In addition products are replaced if an outlet no longer deliver this particular product.
Non-response: Each month about 1 per cent off all questionnaires are missing. Missing prices are imputed. The imputations are based on the average changes in prices from the previous month of the same product.
Sampling errors are not calculated.
For some goods prices measurements are based on price lists, and changes in discounts given to building contractors are not taken into account.
Price effects due to changes in relative prices.
The price ratio between different goods and services has been changed over time.
Unsatisfactory handling of quality changes.
Statistics Norway has not initiated separate calculations of the impact of these measuring errors in the building cost indices.
The construction cost indices are not subjected to revisions.
Hanne Beate Høiby