Property Replacement Cost Data
DLRadar scores RSMeans-style replacement cost against assessed value across U.S. property records - so you can find the ZIP codes and homes priced below what they would actually cost to rebuild. When an asset trades under its depreciated replacement cost, the buyer is picking up the structure for less than new construction, and new supply cannot undercut that price. That is the margin of safety this engine is built to surface.
Actual DLRadar results · record-level detail unlocks with a plan
Replacement cost, in the aggregate
National medians across the scored universe. Aggregates only - no individual property is shown here.
Across 1,035 ZIP codes and 2,182,193 scored parcels, the median structure costs about $144 per square foot to rebuild new, with a median replacement-cost-new near $252,190 and a median depreciated replacement cost of roughly $126,169. On a property-weighted basis, about 4.7% of scored parcels sit below their depreciated replacement cost - the pool where rebuild economics put a hard floor under price.
The four numbers that matter
Replacement cost (new)
What it costs to rebuild the structure today at current material and labor prices, derived RSMeans-style from building size and characteristics. It is construction value only - land is excluded.
Depreciated replacement cost (DRC)
Replacement-cost-new less wear, age, and obsolescence. DRC is the current physical worth of the improvement and the truest read on an asset's construction cost basis.
RC ratio (AV / DRC)
Assessed value divided by depreciated replacement cost. Near or below 1.0, the assessor is valuing the property at or under rebuild cost; well above 1.0, land and market are doing the heavy lifting.
Below replacement = margin of safety
A property priced under its DRC is being acquired for less than it would cost to build. Builders cannot profitably add supply at that price, which puts a floor under value and limits downside.
Find below-replacement inventory before the market does
This page is the national aggregate view. A DLRadar account opens the ZIP- and property-level replacement-cost data - which parcels price below their depreciated rebuild cost, and where those pockets concentrate.
Methodology
For each property, DLRadar estimates an RSMeans-style replacement-cost-new from the building's square footage and characteristics, then applies age-based depreciation to derive the depreciated replacement cost. Each parcel's assessed value is compared to its DRC to compute an AV/DRC ratio, and a property is flagged as "below replacement" when its price sits under its depreciated rebuild cost. These per-property scores are rolled up to the ZIP: median cost per square foot, median replacement-cost-new, median depreciated RC, median assessed value, median RC ratio, and the ZIP's share of properties below replacement. The national figures on this page are medians taken across ZIPs with a meaningful sample so a single-property ZIP cannot skew them, and the national share below replacement is property-weighted to reflect the true count of scored parcels rather than an average of ZIP percentages. The engine is refreshed as new assessor and parcel data lands.
Replacement cost, explained
What is replacement cost for a property?
Replacement cost is what it would take to rebuild a structure from scratch today at current material and labor prices - not what it would sell for. DLRadar computes an RSMeans-style replacement-cost-new for each property from its building size and characteristics, then applies age-based depreciation to get a depreciated replacement cost. It is the construction value of the improvement, independent of land value or market sentiment.
What does depreciated replacement cost mean?
Depreciated replacement cost (DRC) takes the cost to rebuild new and subtracts wear, age, and functional obsolescence. A 40-year-old house does not carry the same value as a brand-new build of the same footprint, so DRC reflects the current physical worth of the structure. It is the number most useful for judging whether an asset is being carried above or below its true cost basis.
What is the RC ratio (AV / DRC)?
The replacement-cost ratio compares a property's assessed value (AV) to its depreciated replacement cost (DRC). A ratio near or below 1.0 means the assessor's value is at or under what the building is physically worth to rebuild - a sign the asset may be priced below replacement. A high ratio means market and land value are carrying the price well above construction cost.
Why does 'below replacement' matter to investors?
When a property trades below its depreciated replacement cost, a buyer is effectively acquiring the structure for less than it would cost to build - a classic margin of safety. New supply is unlikely to undercut those prices because builders cannot profitably construct at that level, which puts a floor under value. Concentrations of below-replacement stock flag markets where downside is limited relative to rebuild economics.
Go deeper
- ZIP Stress Report - the full per-ZIP distress read, including the RSMeans-style replacement-cost block.
- Distressed ZIP Codes - the U.S. ZIP codes under the most housing distress.
- Distress Radar - the national distress overview and signal map.