When planning for the cost of a new roof and looking at manufacturers' prices, it's useful to understand the relative cost breakdown between finished products (manufactured roofing materials) and a contractor's labor and construction expenses. According to Shawn Schwotzer—owner of Pyramid Roofing in Manchester, New Hampshire and a ServiceMagic-preferred contractor—the baseline average for these costs is about 50-50. Schwotzer indicates that this average remains fairly consistent, but a number of factors can push the exact percentage one way or another. "The pitch, style, how many stories your home has, and whether your roof has one layer or three, they're all variables," Schwotzer explains, "Every single house is different." Schwotzer goes on to say that if you choose a custom shingle, the total project costs may swing to about 60-65 percent toward the finished products' cost.
Roofing Materials Going Up, Labor Staying Constant
Although it remains the most economical roofing material, asphalt roofing manufacturers have said that the cost of asphalt roofing materials will jump 10 percent this March, after already increasing 30 percent in 2008, largely due to an increase in the cost of oil. Though the cost of oil has since receded, the cost of asphalt has not followed, and the economic stimulus—with its focus on highway construction—has put a claim on a large supply of asphalt, further increasing the cost of raw materials.
Meanwhile the cost of metal roofing, which traditionally goes down during times of recession, continues to rise due to sustained demand from China for both residential roofing and metal in general. Plus, roofing manufacturers have used the recent increase in popularity of metal roofing to further justify the cost of their products. As the economy recovers and residential roofing experiences an uptick in demand around the world, the rising costs of roofing materials may accelerate even faster.
In terms of labor costs, many areas of home improvement have seen costs drop as a result of the recession, as demand recedes and meets the relatively short supply of home improvement contractors. The roofing industry, however, with steady consumer demand and high project costs yielding tidy profits has always drawn a fair share of construction workers. The result has been a fairly consistent cost of labor for roofing companies over the years—not cheap but not overpriced, either. Over the next few years, labor costs will undoubtedly rise, but in increments that reflect cost-of-living and inflationary pressure, rather than a marketplace upheaval.
Roof Installation and Roof Removal
Average Costs of Roof Installation
This discrepancy isn't as inexplicable as it might initially appear. An asphalt roofing replacement that costs only $6,000 might reflect the average life expectancy of asphalt roofing (10-15 years or even less in the case of re-roofing), while a high-quality architectural asphalt roof, installed by a skilled, experienced roofer can last 30 years or more. Schwotzer points out the difference in the time and expertise of various roofing installation, as well. "If somebody is offering a 10-year installation warranty and somebody is offering a 2-year warranty, that's definitely something you want to look at and consider." In terms of labor costs and choosing a roofing contractor, installation warranties can be key in determining the overall value of the contractor's cost. Keep in mind that, separate from product warranties that only protect you against problems with the materials themselves, most roof repairs stem from issues with the installation.
Unless they look at an itemized breakdown of their roof installation estimates, many homeowners don't realize just how much labor costs are contained in the removal of their old roofing system. With asphalt roofing, it can cost around $75-$150 per square just to remove the old roofing system and clean-up the resulting mess. This can represent, on average, about 30-40 percent of the total installation cost or about 20-30 percent of the total project costs. Thus, if you're able to re-roof (install new roofing directly on top of old roofing), substantially reduced labor costs will make for a tough decision, given that even responsible re-roofing can shorten a roof's lifespan by 25 percent.
The average cost for a roof installation is $18,825, according to Remodeling Magazine's 2008-09 Cost vs. Value Report and accounts for 30 squares (3,000 sq. ft.) of 235-pound fiberglass, asphalt shingling. Meanwhile, ServiceMagic, leading online resource connecting homeowners and home improvement contractors, indicates the average asphalt roof installation costs $6,088. This figure represents the price homeowners have actually paid for roof installation after choosing amongst multiple bids and undoubtedly includes many homeowners who chose to have their homes re-roofed, rather than torn down to the wood sheathing and constructed from scratch.
