If you need to replace your roof, you may have noticed that roofing prices seem to be higher than what they were only one year ago. The average reported cost for asphalt shingles is $5,460- 8,750 on a 1,600 sq.ft. ranch style home.
In this post, I would like to offer a unique insider’s perspective on this pricing situation to homeowners looking to get the best deal on installing a new roof.
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Roofing Prices On The Rise Across The US
People who are doing any kind of renovation, including re-roofing, often face the fact that today contractors are charging at least 15 -20 % more for the job than what their friends or neighbors paid only a few short years ago.
While there are a number of reasons for this spike, there is one that most consumers are not aware of. I would like to shed light on it here: contractors’ costs for roofing materials keep increasing!
I have had my roofing business for the past 15 years, and for the last 10 of them, I’ve been amazed and frustrated with the fact that the cost of roofing materials continues to rise. This includes the shingles themselves, as well underlayment, and all kinds of other necessary accessories.
Every spring, distributors send out notices to pros that read something along the lines of:
XYZ Manufacturer has increased the selling price of their product, and we have to pass the added cost on to you. Beginning March 1st, the cost of ABC Product is going to increase by 7%, and most accessories will go up 3-8%… blah blah blah…”
Think about this for a moment:
- In 2008, a gallon of EPDM Primer from Harvey was about $18-20. Recently I picked one up for $36 (tax included).
- In 2007, I used to pay about $220-275 per square of metal shingles (with basic accessories) and $130 per 10 square roof of GAF DeckArmor underlayment. Now, my cost is $370-450 and $250-280 respectively.
- Architectural asphalt shingles were about $70 per square, and now they are at $100 or more.
That is more than a 50% increase in 7 years! Mind you, inflation is in theory only around 4%.
I know for a fact that the true cost of these products went up AT MOST at the inflation rate, but most likely much less! How do I know, you ask? One of my INDEPENDENT suppliers is charging only $10 bucks more per square of METAL shingles vs. what they charged in 2008!
Why Are Roofing Prices So High?
Back in 2008, I used to buy TAMKO steel shingles from ALSIDE Supply. Unfortunately, they no longer carry Tamko products in RI and MA, so I had to switch suppliers.
But back then, I was on good terms with my salesman, and one time he sat me down at his desk to fill out some paperwork.
I noticed that right in front of me was a document that showed ALSIDE’s material cost, which was only 60% of what they charged me! Turn percentages around – that is a 67% markup on materials!
I was enraged! Sure – a business needs to make money, and I have no problem with it. But, typical markup for distributors in ANY industry is 40% or less. This is enough to cover costs and make a VERY good profit:
ABC Supply’s former founder and CEO Ken Hendricks, before his death in 2007 (he died from a fall off a ladder – how ironic) had a net worth of $1.5 Billion, selling “roof shingles”. And at that time, ABC had $2 billion in sales every year. A company does not become that big by not making money.
So – suppliers charge a lot. I get it – after all, a corporation’s main purpose is to make and increase profits. But here is another “story” that we keep hearing from the manufacturers – rising costs. Rising cost of OIL, rising cost of LABOR, and this and that, and so on. Every year.
As you can see from the price above, the Crude oil price is now at $62.29 per barrel (as of February 19, 2018) which is $50 (FIFTY) lower than the high prices we had in 2011-2014.
Yet in September alone, we got another round of emails from Harvey BP (Roofing Supplier) stating that roof prices are going up yet again:
Sep. 2, 2017
– Aluminum Products
Manufacturers of aluminum products have announced increases of between 5-8% on all aluminum products. As a result we will be passing on these increases effective October 1, 2017. These increases include, but are not limited to, Aluminum Trim Coil, Siding, Gutter, Edging, Sheet Stock, etc.
– Fabral Roofing
Fabral has just announced a 5% increase effective September 15th which we will need to pass on at that time.
We have also received notifications of increases of between 5-10% from our asphalt shingle manufacturers that take effect in early September. We will continue to hold the line on asphalt shingle prices as long as possible.
Sep. 16, 2017
– Roof Cost Increases
A reminder that all roofing manufactures raised their prices between 5-10% effective at the beginning of September. We will need to pass along an increase of 1-4% effective October 1, 2017. This increase will apply to many non-standard shingles and various accessories.
Non-standard shingle examples include: CertainTeed Patriot, GAF Timberline Natural Shadow, Tamko Heritage Vintage, etc. Some accessory examples include Tamko Ridge Roll Vent, GAF Snow Country, Cobra & Shinglemate, select Hip & Ridge cap products, etc.
This increase does not include 3 of our most popular shingles: Landmark, Timberline HD and Heritage. We will continue to hold the line on these standard shingles as long as possible, but please factor in a 5-10% increase when pricing out any projects that will begin after mid-October.
– Aluminum Products
In the past 30 days, Manufacturers of aluminum products have announced multiple price increases. These combined, result in some products increasing by as much as 12%. As a result, we will be passing on two rounds of increases: the first effective October 1, 2017 and a second effective October 15, 2017.
These increases include, but are not limited to, Aluminum Trim Coil, Siding, Gutter, Edging, Sheet Stock, Storm Windows and Storm Doors, etc.
Let’s look at it this way:
Since 2008, oil prices have been dancing around $140 / barrel (a temporary record), with a huge decline after the housing and financial bubbles of late 2008. However, they did not stay low for very long. In 2009, they dropped to around $58 / barrel, but by 2011, came back up into $100 range.
Now let’s compare this to ASPHALT shingles prices – why asphalt? Because OIL is the main and most expensive ingredient in these shingles, and is one of the few building materials that is directly affected by large fluctuations in cost of crude oil.
So, in early 2008, the cost of shingles went up to around $90 per square (100 square feet or 10×10 area). But in 2009-2011, it did not decrease a single penny … rather stayed stable. After 2011, the cost of these shingles began rising again, while crude prices slowly came back (and stayed) at around $100/barrel.
Now, February 2018, crude oil is considerably cheaper – $62.27/barrel, and shingles are still $100-110 per square. So yeah – oil prices “really affect the price of roofing”. Basically, manufacturers increase prices, while maintaining stable or even lower costs!
But even more frustrating to me is a huge increase in the cost of flat roofing materials, such as PVC.
Core PVC roofing contains ZERO oil byproducts. If fact – PVC (poly vinyl chloride) is made of CHLORINE (gas) and Vinyl (made from fossil fuel, which is NOT oil).
However, our cost for PVC has gone up 40% since 2008, and our supplier actually cited “increasing oil prices” as the main reason for the price hike!
The REAL Reason Why Roof Installation Prices Keep Going Up
I think by now you get the picture – it’s pure greed! Manufacturers and suppliers are in a very unique position, where in theory there is competition, but in reality, you have 3-5 major players in the industry, who all, like a clock, raise their prices every spring and on other “special occasions”.
Contractors do not have much of a choice but to bite the bullet, pay up, and pass the added cost onto the end user – the home or building owner.
I recently came across this discussion on the roofing forum, where an aging roofer is considering becoming a materials’ distributor.
A common response from others, who already tried this, is that big roof manufacturers will not sell to them! They are protecting their status quo.
Here is the thread.
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29 comments on “Why Roofing Prices Keep Going Up In 2023”
Just to add. Southern CA northwest of Los Angeles. Got a full re-roof quote in late 2020 when wood costs were at their worst – $20k but needed to postpone. Right now quotes for the same job with the next step up in shingle is $38k. CertainTeed has “only” increased their prices 40% and osb is cheaper. So about 90% increase.
I am getting quotes in Long Beach, CA to remove and replace the rolls (hot mop or torch, not sure) on a portion of my roof that has tie-ins to a pitched comp shingle roof. It’s just under 4 squares. Quotes are in the range of 4900-8000.
Any reason why the quotes are higher than what I’m seeing generally for the area of about $500-800 per square?
Is tear-off involved? what kind of insulation? What is your steep slope roof material (shingles or tile or something else)?
Days of 500-800 per square are long gone. I was charging $800 per square of IB Roof (PVC) 60-mil with 1/2″ insulation, in 2006. Now the materials are up 150-200% since then plus crazy expensive shipping, and labor is way up, and guys don’t want to work, so hard to find good workers, and gas, and everything else is up.
Also, torch / hot-mop all involved flame, which insurance companies don’t like any more, as there are much better alternatives such as PVC single ply roof (and some will even mention TPO but i’m not a fan).
$4900 does sound reasonable, especially that you need to remove at least 2-3 feet of steep roof for a proper tie in, which adds to labor and materials.
$8000 definitely on the expensive side. Get more quotes.
Recently called a few roofers for our townhome with a roof coverage of roughly 1067sqft. The cheapest quote being 5400 and the most expensive being at 7100+HST.
Reading this article just makes my blood boil. This is nothing but greed and the local governments should get involved. With the call for rates to be hiked, they can’t come soon enough. I sure as hell hope we will see price drops in the coming months or years.
Thankfully we may have another 3-4 years left on our shingles as they seem to be ok – no crumbling or curling etc.
You are getting $5-7 per sq.ft. price which in 2022 is not that bad actually. Think of it – yesterday we had a CPI report of 9.1% inflation as compared to same time year ago (when inflation was 5.4% i think). So in 2 years combined official “inflation” is 14.5% …
So if your roof costs 5400 now, then 2 years ago, same roof would cost $4617… And if inflation remains about the same (9.1%), your roof will cost $6383 in 2 years (on the low end). Thanks Joe Brandon 🙂
In the last 2 years, I get emails from my suppliers almost every 2-3 months about 6-8% price increase on materials. I think overall, the increase in last 2 years was about 30-35% compared to pre-covid levels.
In any case … $5 per foot with today’s prices is not bad at all… $7 is expensive .. but in my mind, prices are frozen in time. I wrote this guide 8 (in its original form) years ago, and a lot has changed since.
In the article, I give example how I used to buy GAF Deck Armor underlayment for $130 per roll. If we calculate compound inflation at 5% we get $270 per roll over 15 years, which is about what it costs now. So yeah … things are getting more expensive.
Another thing I want to mention – there are many roofers now that struggle to find reliable help, and thus have to pay a lot more in labor costs, just to get someone to work (again thanks Joe Brandon for sending Covid payments for 2 years, and conditioning millions of people NOT TO WORK).
Also many not-so-honest roofers are using this chaotic time to raise their prices much more than the real inflation. I get people asking me why Asphalt Shingles quote they got is $15/square foot … now – that is the real scam and a highway robbery.
So once again – I think $5-7 is not all that bad in 2022.
Best of luck, and hope this helps.
I was just quoted 30k on a shingle roof and 63 and 72k for a metal roof (standing seam, galuminum or whatever) my house is 3000sq one story. I can’t even understand how these prices are possible. I was looking into solar and for the metal roof + solar I was quoted (as a final offer price) $118,000.00. FOR. A. ROOF. Any advice is welcome. I have leaks so I need to do something. Will prices come down?
Those numbers are insane. Get more quotes.
While your home is 3000 s.f., the roof area is likely 3500 s.f. Still that $30K for shingles comes to about $8.50 per sq. ft. Way too expensive. Should be more like $5 – $6 per foot, with tear-off, good underlayment, etc.
Metal (Galvalume standing seam) should not cost more than $11-14 per foot.
All of the above assuming your roof is fairly simple, and accounts for recent price hikes, etc.
As far as leaks – those can be repaired in most cases. Get some roofers (not sales people) to come out and give you quotes for both.
Thirty years ago I worked on a roofing crew and know what it takes to do a roof. Hey it ain’t rocket science but it is hard work. Workers comp is high – yep. Roofers get paid well – yep. CGL is high – yep. I know all that cost, I know the cost of CGL/WC/BAP it is high but it isn’t that high!!!
The quotes I am getting to re-roof my house makes me want to kick these people right off my property. Some are quoting $600 a square! Twenty years ago me and my friend did my porch roof and would do the entire job again myself except I am not 70 years old. My knees would hurt.
My house is in a normal neighborhood, not some architectural, multi-gabled roof. In 1986 I paid $75,000 for it but it came with three acres, a portion of that price was for the land. Houses here are selling for $185,000. It is a working persons area, not where bankers and lawyers live.
Plus thirty years ago we weren’t using nail guns. Now they can lay a bundle a lot faster and easier than the days when I used a hammer. In economics that would been an increase in efficiency would create a decrease in labor costs but it seems in the world of roofing the opposite is true.
The roofing contractors used to show up to quote in their Ford E350 van or pick-up truck. Now they who up in that $65,000 shiny pick-up truck that never sees a days labor.
I’m ticked! I’ll put a tent over my house until the next recession when they start begging for work.
Shingles jumped from $21 to $26 overnight at Lowe’s. That’s 25% overnight. Inflation is only 2.5% not 4%. Got their decimal point missing.
If you don’t send your children to college and don’t buy real estate, than inflation is 2.5% … but most Americans do (college and houses) … and thus real inflation is in fact 4% or higher…. My home’s value went up by 17% in 3 years, which is about 6% / year … on top of that Interest rates are way up, so my mortgage payment toady would be at least 16.79% higher if I bought it today vs 3 years ago. I ran the best case scenario numbers in mortgage calculator, assuming I gave same percentage down-payment (not same amount). With same downpayment amount, I would have to pay 21.7% more every month!
But regardless – real inflation is important for economists and bankers … people don’t really “feel” it that much (unless they make large purchases), when they buy chicken or veggies … and gas prices are fairly low anyway.
However shingle prices are insane in my opinion, and we both agree on that, and that is mostly pure greed from manufacturers … sure their costs go up, but not enough to justify the insane cost increases.
Dude, it’s even worse because inflation is only around 2.5% not 4 percent annually
Well written article. I feel like last year I received a price increase notice several times. It is rediculous how much roofing has increased over the last ten years. There is no way possible that a square of shingles I paid 30 dollars for 15 years ago should cost 90 dollars today and more after April. Guess until we have another option for roofing they will continue to take advantage of the circumstances.
There is another option – metal roofing. It is also good for business, as contractors can differentiate themselves from the hordes of shingle guys, and charge premium.
The problem here is, and it’s the reason why asphalt shingles are and will be for the next 20-30 years the number # installed roofing product in US and Canada – homeowners don’t want to spend money for a good roof. So they end up with a roof that maybe will last 15 years. However, by then – most of them will be living in a new home anyway, and will be replacing someone else’s 15 y.o. roof 🙂
Well…I’m a wimpy Yuppie type-I don’t like heights. I inherited an early Sixties ranch (Inner Detroit Suburb) ca. 1600 sq. ft.
It last had a new roof (asphalt shingles, underlayment, and multiple boards replaced) back in 2003. I believe the bill was around 3,500, and it took them about three days in July. Since then, I’ve had ice dams, and the gutter/downspout system replaced ($3000 in 2018.) I also had shingles blow off-in flocks at a time-during windstorms. My neighbors had less damage. It’s an old-school roof with soffit vents.
Long story short: I got two estimates for dimensional shingles and a ridge vent. The first guy said 15,000, but he worked for a less highly rated company, and didn’t bother to inspect my crawlspace attic. The second guy, from the five-star place, did, and said there were a LOT of rot around the nail holes, and that many of the shingles were heat-fractured. He also retrieved the two T-Rex mouse traps I had a trapper put near the attic door in 2018. And, Yes, both had dead mice in them. I told you I didn’t like heights.
His Estimate: 28,000. A bit Steep: and, the roof, btw, is not very steep.
I only want the roof replaced so I can sell the house, before the neighborhood totally goes down the drain. It’s nice in my immediate area (except for the carjacking/murder in the new condos behind me) but it will not stay that way. And, I hope when the gables are sealed up, I won’t get any more rodents!
Are we taking USD or Canadian Dollars?
If USD – even $15000 for a 1600 sq.ft. roof is way too much for asphalt shingles job. It should be around $8000-9000, plus cost to repair rotten wood. I am not sure how much damage you have there.
While roof shingles prices have (yet again) increased dramatically, and had additional 2-3 price hikes this this year alone, to the tune of 20-30% … Still you can buy shingles for about $1.25/sq. ft. and total material cost in the $2/ft range. I don’t see why a roofer would charge $10-17/ft. That is insane. Normal price for shingles tear off and install should be in $5-7 range currently, given the inflation and labor shortage. Get more quotes!
We all need to call our congresscritters and demand better antitrust laws and enforcement! We are not powerless, but unless we call our public servants to account, they will continue to look the other way.
I’m sorry, but as someone who has been in business as a marketer for about 40 years, I am not buying the argument that a spike in demand and the need to add facilities and payroll to supply it is justification to increase prices beyond your actual COGS increases. If the commodities prices for the inputs to those materials go down, it’s a windfall for you that flows directly to your bottom line. If you raise prices in the face of falling input prices it IS greed that motivates you. Increases in demand due to natural disasters are a windfall for your industry (and a tragedy for homeowners) that gives your business AN OPPORTUNITY to fund investments in plant and workforce out of the higher sales revenue that results from the increased demand. There is no way to dress up the fact that if you raise your prices beyond your actual COGS increases because your services are in demand, you’re gouging your customers. That’s it. Everything else is BS.
Completely agree – unfortunately for consumers, greed is the name of the game. 10 years of sub $70 oil prices (first 6 years – sub $60/barrel), from the highs of $140/barrel, and roof shingles prices came down maybe 5-10% by 2016-2017. Most of these 10 years, laminated shingles were at $100/square, where as in 2006, they were $60/square, and now they are at $90.
Because roofing materials have gone up so significantly, has insurance ever changed what they pay per sq yet? Also, what do roofing contractor’s do when they take off a 30 year roof but the homeowner association requires a 50yr, architectural roof to be installed? Since insurance only pays to replace what is removed, do roofers pass the costs onto the homeowner? When we have encountered this scenario, we have eaten the cost of what insurance wouldn’t pay for. Until last year, it wasn’t as big of a noticeable hit. Last year-it was very significant. I just wondered if insurance is paying more per sq & in the case of H.O.A. Requirements dictating the materials used, does anyone ever try to get more per sq from insurance? KC-MO
Most insurance companies will do their best to pay out a s little as possible, often denying valid claims, or significantly reducing payouts for required items. With that said, you have to read your policy for details.
As for upgrades from 30 yr. shingles to 50 yr. shingles:
A) These classifications no longer exist, as virtually all roof manufacturers in US have switched “wording” fro 30 yr. to “lifetime” … this is a total gimmick to trick customers, and does not say anything about the actual lifespan of shingles. With this switch, both 30 yr. and 50 yr. shingles are now “lifetime” …
However, there is still a huge price gap between basic and premium architectural / laminated shingles.
Now as for who will pay for the upgrade – it completely out of pocket expense. Think of it this way – you drive a Corolla, and due to some accident where Corolla gets totaled, you expect to get a Lexus GS450 as a replacement, without any out of pocket expense. Well that is just not going to happen in real world …
So yea – any upgrades are out of pocket, and are your HOA responsibility.
Greed is the biggest turn-off why did these guys think they need billions of dollars? what’s selfish bastards!! I’m glad that guy fell off the ladder went to the other side and found out what a ****** he was!!
I’d like to add a little bit more insight (from deeper inside the industry) that may help explain these price trends beyond “greed” from the manufacturers and suppliers.
I understand that this post was created in early 2018, so you may not have had all the information you needed to correctly approach the situation with price increases, but to label this as a comprehensive explanation of the issue for all of 2018 is unfair and misleading. I think it is also important to add that the prices in your area / region do not reflect what the rest of the nation is selling product for, so again, your argument can only be used very narrowly, if at all.
With that in mind, I’d like to start by saying that I worked for a large roofing contractor for six years, so I have a lot of experience from the contractor’s perspective. In 2014, I joined the distribution side. At the time, shingle prices in our area were dropping dramatically for many reasons including the cost of oil, improved features, new technology that allowed manufacturers and distribution centers to become more efficient, and a lack of major storms which resulted in lower demand for product.
Since then, I have seen my fair share of price increase notices from manufacturers, but typically, those price increases never take effect (this experience is specific to my region and may not be reflective of the entire nation). Manufacturers release those price increase notices every year around March to protect themselves from what hurricane season may do to our industry. I believe it is only fair that shingle manufacturers give ample opportunity for contractors, suppliers and insurance agencies to adjust their prices accordingly BEFORE a major weather event obliterates thousands of homes during hurricane season (which typically starts in June).
So, why would a hurricane or massive storm that takes out hundreds of thousands of homes make prices go up? Well, when you have a product that is suddenly in high demand, you need to make extra money to create more jobs, facilities and product to service the people in need as well as make sure you are still servicing the areas that weren’t affected by the storm.
Let’s look at 2017: There were two disastrous hurricanes, Harvey and Irma, that hit the U.S. and damaged hundreds of thousands of homes in Florida, Texas, and many states in between. Fast forward one year later to where we are now, and MOST of those homes have still not been fixed. The industry is still reeling from the impact of those storms, and the demand for product in these areas is still very high. And guess what? A new hurricane season JUST started. That means that not only are manufacturers and suppliers still trying their best to supply material from last year’s hurricane season, but on top of that, we have new potential threats to prepare for. This means more jobs, more facilities, more products that result in higher prices.
I will spare you my thoughts on your argument about metal prices, because I think we all know by now that metal price increases have absolutely nothing to do with “greed”.
Leo B. – as a novice consumer curious about the reasons for periodic price hikes of materials, this read was extremely informative. Our church is replacing our roof, and the contractor has warned us about price increases (2-3 per year) from GAF. We wondered why. Your comments have been very enlightening. Thank you.
In regards to your statement about PVC. Vinyl is definitely a petroleum-based product, at least in today’s manufacturing processes. “Fossil fuels” include coal, oil, and natural gas. The petroleum portion comes from ethanol, which is mostly produced from oil. While it is possible to produce ethanol from plant-based alcohols, by volume oil is virtually the sole source of ethanol.
This also means that the statement, “…and Vinyl (made from fossil fuel, which is NOT oil)” is inaccurate.
So, in a very real sense the cost of PVC _is_ tied to the price of oil. Depending on the time it takes to go from oil to PVC the price delay may be weeks to months. On such a long production chain there are many other cost factors that contribute to the price of PVC, but the link is very real. To some degree this means the price of PVC products will rise and fall with the cost of oil, with some delay to account for the time involved in the production chain (oil > ethanol > vinyl chloride > polyvinyl chloride).
Great read. As a fellow roofing contractor in Charlotte, NC we buy Tamko, and are on great terms with our salesman. We have seen a pretty good increase with our prices on products as well. I agree totally that it is pure greed. I am kind of getting the feeling that they are simply making up for lost time with the housing market came into affect. It is incredible the amount of people who are unable to afford it us because of our mark up just to stay competitive. Great read. I am glad I ran into this.
The ugly truth – shingles went up to $100/square level at the end of G.W. Bush presidency (just as oil prices dropped from $140 to $40 per barrel).
Oil prices have mostly stayed around or below $50/barrel in the last 8 years (Obama presidency) so shingles should have gone down to $65-70 per square. But they did not. So this is pure profit for manufacturers!!!
Great business to have with guaranteed demand for your product – because all asphalt shingles and junk that is made to fail after 12-18 years.
I think that US homeowners should say not to shingle manufacturers and just go with a more expensive metal roof – so they would never have to buy another asphalt roof again!
Also consider that companies like ABC supply are planning on buying L & W supply company for 670 million cash. They will then control 7% of the nations gypsum board sales. Meanwhile they are not willing to negotiate union contracts, or reduce the price to contractors. Essentially their Union employees and their contractor customers are buying L & W for them.
If i where a contractor that is being fleeced by ABC supply I would refuse to purchase from them. Organize all the contractors and create a Buying group.
i would like to know why the cost of asphalt shingles has not come down.
oil went from hundred dollars a barrel to under $30 barrel for about a year now but Shingles have not come down in price.
I might also add Price to paint has also tripled during this time product made from oil and has not come down at all either.
Because roof manufacturers want to make more money, and people keep replacing their roofs with crappy asphalt shingles – the system works!
Why charge $70 per square when you can get $90-100 no problem?
I mean – I agree that it’s BS, but it is what it is. However – the metal roofing prices have come down a lot – a 5-rib / R-panel system now costs the same as 30 year architectural shingles. And R-panel is SO VERY EASY to install on simple roofs – a homeowner can do a 15 square range in 1 day (over-top).