If you’re debating on whether a new roof installation will increase your home value, we’ve done all the research to help you make the best decision. Your roof affects your home’s aesthetics, energy efficiency and level of protection. We all know a quality roof is important, but will a new roof increase your home’s value? Will you see a high return (ROI) from installing a new roof? We’ve gathered the data, now let’s dive in.
What the Data Says
Remodeling’s 2022 Cost vs. Value Report found the average American spends $31,535 on asphalt shingle roofing replacement and sees a resale value of $18,780. This is a 59.6% ROI. For metal roofing, the ROI was lower, at 54.8%.
NAR & NARI’s 2022 Remodeling Impact Report found new roofing to have the highest percentage cost recovery of exterior projects, at 100%. NARI Remodelers’ cost estimate for new roofing was $12,000. The roofing type was not specified.
A new roof is a smart and usually necessary investment, but where will you fall on the ROI scale? There is almost a 40% difference in ROI between the most reliable data in the roofing industry. We took a deeper dive to look at the obvious and less obvious factors influencing the numbers.
Factors Influencing Roofing ROI & Home Value
- The Condition and Age of Existing Roof
The NARI report cited a 100% ROI for new roofing. Of the statistic, 51% of homeowners cited upgrading worn-out surfaces, finishes and materials as the reason for replacement. What does this mean? The data shows high favorability for new roofing installation when the previous roof is old and worn. Picture a home with a damaged or century-old-looking roof. The entire house gets a facelift and better protection the moment a new roof is installed.
- Your Local Market
New roofing is more valuable in some markets than in others. The NARI report cited 33% or 1/3 of REALTORS® recommend roof replacement before selling. That means for ⅔’s of sellers, a new roof won’t make sense if other conditions aren’t at play. However, for ⅓ of sellers, your local market will play a heavy hand in generating a higher ROI.
- The Roofing Material
Roofing jobs should match your neighborhood for the best return. Luxury shingles in a starter home may not yield the highest possible return. Depending on your neighborhood, your resale value may be limited. In the same regard, installing cheap shingles in a luxury community may decrease your home’s value.
How to Increase Home Value with a New Roof
To get the most value from your new roof, there are critical decisions to make during the selection process. You’ll need to choose a reliable, professional contractor with a great reputation. The most important aspect of a high ROI is installing a roof that’ll last and ward off weather elements. Second, choosing the right material is critical to match your neighborhood’s value and make the best selection for your home’s look. If you have an older home with a traditional style, you may want to consider a classic material like slate or tile, which can add charm and character. Alternatively, if you want a modern look, metal or asphalt shingles may be a better choice. To fully capitalize on your investment, choose an energy-efficient material to cut down on energy bills.