The cost of a new roof is 20-40% more and it’s not going to go down. 2022 Inflation is here and effecting the cost of a new roof. In this video we break down the cost of shingle from 2020, 2021, and 2022 and show how this is dramatically increasing the price of a new roof. Roofing companies aren’t making more money the reason prices are increasing is because of material.
There have been so many price increases in material these past 2 years Unfortunately it doesn’t look like it’s going to go down. These prices are here to stay and they may increase more. Prices before COVID and after very different.
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Today's Current Inflation
According to Trading Economics the current annual inflation rate in the US is around 8% with energy prices increased 34% and food prices jumped 10% in May.
How does this tie back into roofing?
America’s contractors have experienced material price inflation nearly three times that during the same period of the 8% inflation.
It got to the point where we were getting price increases every month and telling our customer’s our estimates are only good for 20 days. As a roofing contractor, it was a 7-10% increase on shingles & accessories for every material shipped out on the Price Increase day.
2020 Vs. 2022 Shingle Prices
The cost of Owens Corning Oakridge 3o Year Shingle over the years:
June 2020: $26.00 Per Bundle of Shingles
May 2021: $32.33 Per Bundle of Shingles
May 2022: $39.00 Per Bundle of Shingles
Between now and 2020 the difference between a bundle of shingles is $13.00 now let’s see how just the price increase of the shingles affects the overall price.
An average home in the Woodlands area, is around 40 squares or 4,000 Sq.FT.
You would need 3 bundles to cover 1 roofing square. If the roof is 40 squares then you would need at least 120 bundles of shingles. The total cost in 2020 would have been $3,120.
The same exact shingle and 120 bundles in 2022 cost now $4,680.
The difference between the two is $1,560. That is the same exact shingle 2 years later. Now keep in mind that is only the shingle cost that is not including:
- Gas price increases
- Drip Edge
- Ice & Water Shield
- And etc. to complete your roof system
If the current inflation was 10% in the roofing industry that would mean a $10,000 roof would only be $1,000 more today. A roof isn’t just $1,000 more today as you can see with the increase cost of just the shingles. Inflation is a lot higher than what people are realizing today.
How Price Increases is Affecting You
The point of this blog isn’t to scare homeowners but rather be honest with our prices and prepare you. Pre-Covid roof replacement prices are numbers that aren’t doable anymore.
The increased cost of a new roof is not because roofing companies are making more money but rather the 20-30% increase of material. There are only a few suppliers that make the shingles and control the prices.
Why It's Better to Replace Your Roof Today
As prices continue to climb, there is no time better than today to replace your roof.
Most homeowners think it is best to wait until the shingle pricing comes back to “normal levels”.
There is nothing to suggest that shingle prices will drop down to pre-COVID levels. This is actually similar to what we saw after the huge pricing jump in 2009 where there was a spike in asphalt cost. As the cost of asphalt stabilized, the shingle prices remained consistent – until 2020 where they began to rise again.