The Economics of Roofing
Cost Breakdown, ROI Analysis, and Why Roofing Prices Vary
Introduction: Understanding Roofing Costs
Roofing is expensive. A typical residential re-roof costs $8,000-20,000+ in the Fraser Valley. Understanding where that money goes helps you make informed decisions and spot red flags in quotes.
COST BREAKDOWN: WHERE YOUR MONEY GOES
Typical Residential Re-Roof (1,500 sq ft, Architectural Shingles)
Total Cost: $12,000-15,000
Materials (40-45% of total cost):
- Shingles: $2,500-3,500 (15 squares @ $150-230/square)
- Architectural shingles: $150-200/square
- Premium shingles: $200-300/square
- Designer shingles: $300-500/square
- Underlayment: $600-900
- Synthetic: $40-60/square
- Felt (not recommended): $15-25/square
- Ice & water shield: $400-600
- $25-40/roll (covers 200 sq ft)
- Extended coverage (72 inches at eaves + valleys)
- Drip edge: $200-300 (aluminum or galvanized steel)
- Ridge cap: $300-400
- Vents, flashing, nails, sealants: $400-600
Labor (40-45% of total cost):
- Tear-off: $1,500-2,000 (1-2 days, 3-4 workers)
- Installation: $3,000-4,000 (2-3 days, 3-4 workers)
- Cleanup: $300-500 (magnetic sweep, haul away)
Overhead & Profit (15-20% of total cost):
- Insurance: $5M liability, WorkSafeBC ($500-800/job)
- Equipment: Trucks, ladders, tools, safety gear
- Dumpster rental: $400-600
- Permits: $100-200 (if required)
- Office overhead: Estimating, scheduling, admin
- Profit margin: 10-15% (industry standard)
WHY ROOFING COSTS VARY
Roof Complexity
Simple Roof (Lower Cost):
- Gable or hip roof (basic geometry)
- Low pitch (4:12 to 6:12)
- Few penetrations (1-2 vents, 1 chimney)
- Easy access (ground-level, no obstacles)
Complex Roof (Higher Cost):
- Multiple valleys, dormers, turrets
- Steep pitch (8:12+, requires safety equipment)
- Many penetrations (skylights, vents, chimneys)
- Difficult access (multi-story, tight spaces)
Cost Impact:
- Complex roof: 20-40% higher cost per square
- More labor hours (cutting, flashing, safety setup)
- More material waste (complex cuts)
Material Quality
Budget vs. Premium:
- 3-tab shingles: $100-130/square (15-20 year lifespan)
- Architectural shingles: $150-200/square (30-50 year lifespan)
- Premium shingles: $200-300/square (50+ year lifespan, better warranties)
- Designer shingles: $300-500/square (luxury appearance, lifetime warranties)
Total Cost Impact:
- Budget materials: $8,000-10,000 (1,500 sq ft roof)
- Premium materials: $15,000-20,000 (same roof)
Contractor Quality
Low-Cost Contractor ($8,000-10,000):
- Minimal insurance (or none)
- No WorkSafeBC coverage
- Budget materials (felt, 3-tab shingles)
- 4-nail protocol (code minimum)
- Minimal cleanup
- Short/no warranty
Quality Contractor ($12,000-15,000):
- $5M liability insurance
- WorkSafeBC certified
- Quality materials (synthetic, architectural shingles)
- 6-nail protocol (better wind resistance)
- Extended ice shield (72 inches vs. 36)
- Thorough cleanup (magnetic sweep)
- 10-15 year workmanship warranty
Premium Contractor ($15,000-20,000):
- All quality contractor features, plus:
- Premium materials (designer shingles, copper flashing)
- Lifetime warranties
- Enhanced customer service
RETURN ON INVESTMENT (ROI)
Resale Value Impact
National Association of Realtors Data:
- New roof ROI: 60-70% of cost recovered at resale
- Example: $15,000 roof adds $9,000-10,500 to home value
- Curb appeal: New roof is one of most visible improvements
Fraser Valley Market:
- Buyers expect functional roof (won't buy with failing roof)
- New roof removes negotiating leverage (buyers can't demand discount)
- Premium materials (metal, designer shingles) may not add proportional value
Energy Savings
Cool Roofs (Reflective Shingles):
- Savings: 10-15% reduction in AC costs
- Fraser Valley impact: Minimal (AC not common)
- Better for: Hot climates (California, Arizona)
Proper Ventilation:
- Savings: 10-20% reduction in heating costs (prevents ice dams, reduces heat loss)
- Fraser Valley impact: Significant (heating is major expense)
- Payback: 5-10 years
Insurance Benefits
New Roof Discounts:
- Some insurers offer 5-10% discount for new roof
- Impact-resistant shingles: Additional 10-20% discount (hail-prone areas)
- Fraser Valley: Minimal hail, so impact-resistant premium not justified
TOTAL COST OF OWNERSHIP
Asphalt Shingles: 30-Year Analysis
Budget Approach (3-Tab Shingles):
- Initial cost: $8,000
- Lifespan: 15 years
- Replacements: 2 over 30 years
- Total cost: $16,000 (2 roofs @ $8,000)
- Maintenance: $500/year (moss removal, repairs) = $15,000
- 30-year total: $31,000
Quality Approach (Architectural Shingles):
- Initial cost: $15,000
- Lifespan: 30-40 years
- Replacements: 1 over 30 years (or 0 if 40-year shingles)
- Total cost: $15,000 (1 roof)
- Maintenance: $300/year (less moss, fewer repairs) = $9,000
- 30-year total: $24,000
Savings: $7,000 over 30 years by choosing quality
Metal Roofing: 50-Year Analysis
Metal Roof:
- Initial cost: $25,000
- Lifespan: 50-70 years
- Replacements: 0 over 50 years
- Maintenance: $100/year (minimal) = $5,000
- 50-year total: $30,000
Asphalt Shingles (Architectural):
- Initial cost: $15,000
- Lifespan: 30-40 years
- Replacements: 1-2 over 50 years
- Total cost: $30,000-45,000 (2-3 roofs)
- Maintenance: $300/year = $15,000
- 50-year total: $45,000-60,000
Savings: $15,000-30,000 over 50 years with metal
RED FLAGS IN QUOTES
Too-Good-To-Be-True Pricing
Warning Signs:
- Quote 30%+ below competitors
- No insurance or WorkSafeBC
- Cash-only, no contract
- Pressure to decide immediately
What They're Cutting:
- Insurance (you're liable if worker injured)
- Material quality (felt instead of synthetic, 3-tab instead of architectural)
- Proper installation (4 nails instead of 6, minimal ice shield)
- Cleanup (nails left in driveway)
Vague or Incomplete Quotes
Red Flags:
- No material specifications ("shingles" without brand/type)
- No square footage calculation
- No warranty details
- No timeline
What a Good Quote Includes:
- Exact materials (brand, type, color)
- Square footage and waste factor
- Labor breakdown
- Warranty (workmanship and materials)
- Timeline
- Payment schedule
The Bottom Line
Roofing is expensive, but it's an investment. Quality materials and installation cost more upfront but save money long-term through longer lifespan, lower maintenance, and fewer repairs.
At Dads Roof Repair, we provide detailed quotes with exact material specifications, square footage calculations, and warranty details. We're not the cheapest, but we're the best value. Our roofs last 30-50+ years because we do it right the first time.
Want a detailed, transparent quote? Call (778) 651-8021 for a free estimate.