The decision on which material to choose when replacing your roof is not an easy one. It’s a huge, long-term investment that affects your home’s curb appeal and future sale value, among other things. So it’s worth considering the return on investment (ROI), which differs depending on the type of roof you have installed. Asphalt shingle roofs tend to be more affordable than other roofing types such as metal roofs, and can offer on average as much as a 64.6% ROI and increase your home’s value by about $7,200.
But the ROI of a new asphalt shingle roof can vary greatly depending on which state you live in, so let’s take a look at the different ROIs across the U.S. and whether or not a roof replacement is worth it for you.
Asphalt Shingle Roof Replacement ROI by State
A return on investment indicates the percentage of the project's cost that you can expect to recoup when you sell your home. A higher ROI means you'll recover a larger share of the project's expense upon resale.
The above map represents the available data from Remodeling’s “Cost vs. Value Report” for the ROI of an asphalt shingle roof replacement across the U.S. To achieve state-by-state data, we took the statistics available for each city in each state and calculated the median average percentage. For those states where the city is mentioned, it was the only available city data for that particular state. Some states had no data available.
The East South Central region has the highest average ROI at 67.3%. The return for this project varies as much as 41% between states, highlighting the vast difference across the country.
States With the Best and Worst ROI for Asphalt Shingle Roofing
Top 10 states with the highest ROI
After calculating the average ROI for an asphalt roof replacement with the available data of large U.S. cities, we discovered that the state of Virginia sees the highest return for this project at 83%. So if your home is located in Virginia, you will likely recoup around $9,200 of the average cost of $11,076 for a new asphalt shingle roof if you decide to sell your home this year.
With South Dakota’s data only available for Rapid City, homeowners living in this area are likely to see an ROI of 78% for their new asphalt shingle roof. If you live in Arizona or Tennessee, expect a return of around 76%. Alabama, South Carolina, and Kentucky all see an ROI of around 75%, and those installing an asphalt shingle roof in Georgia or West Virginia can expect an ROI of around 74%. West Virginia’s ROI data was only available in Huntington this year, which currently sees a return of 73% for this project. Rounding out the top 10, asphalt shingle roofs installed in Vermont tend to produce a return of 72% according to the latest data.
|2. South Dakota (Rapid City)
|6. South Carolina
|9. West Virginia (Huntington)
Top 10 states with the lowest ROI
Not all states see as high of a return for this project, with North Dakota having the lowest ROI for an asphalt shingle roof in the country at 42%. If you live in Colorado or Nebraska, you may also want to take into account the fact that you may see a return of less than 50% for this project once you sell your home.
Those considering investing in their roofs in Idaho and New Mexico are likely to see a return of 52.5%, and an ROI of 50.9% is common for those in Kansas this year. An asphalt shingle roof replacement in Ohio or Illinois may only generate a return of around 58%, and homeowners living in Michigan should expect an ROI of 56.4%. If your home is located in Nevada, you may only see an ROI of around 59% if you decide to take on this project.
|1. North Dakota
|2. Nebraska (Omaha)
|3. Colorado (Pueblo)
|4. Kansas (Wichita)
|5. Idaho (Boise)
|6. New Mexico (Albuquerque)
When is a Roof Replacement Worth it?
There are other factors you should consider, aside from which state you live in when deciding whether or not it’s worth replacing your roof. Here’s when it may be worth making the investment:
1. Costly Roof Repairs
If your roof is showing multiple signs of damage such as leaks, missing or damaged shingles, or structural issues, it may be time to opt for a new roof. Roof repairs can cost up to $16,000, so it’s important to weigh up these costs with those of a total roof replacement which averages at around $24,000.
Although a roof replacement can be more costly than repairs, fixing minor damage on a regular basis will accumulate the costs towards your roof over the years. A new roof can also improve your home’s energy efficiency, saving you some money on energy bills in the long run. Consider carrying out a roof inspection so a professional can help you determine whether or not you would benefit from a roof replacement.
2. The End of Your Roof’s Lifespan
Asphalt shingle roofs typically last between 15 and 30 years. If your roof is nearing the end of its lifespan and isn't in the best condition, it might be worth replacing it. By proactively replacing the roof you're also adding significant value to your property. If you plan on selling your home in the future, a new roof can improve the property’s curb appeal which can attract buyers and potentially lead to a faster sale.
3. The Local Housing Market is in Your Favor
The impact your new roof will have on your home’s value can depend on your local real estate market. This variation is one of the factors behind the differences in return on investment (ROI) from state to state and why in some places a new roof can increase home value and lead to faster sales compared to other areas of the country.
However, in areas where roofs last longer or where buyers focus on different aspects, the return on investment for a new roof may not be as significant. These are usually areas with good climate conditions, as roofs tend to suffer less damage from high winds, hail, or snow. If you’re unsure as to whether or not a roof replacement would be worth it in your area, it’s best to consult with real estate experts or local appraisers.
A Good Selling Point
No matter where you live, a new roof is always a good selling point that could lead to a fast and successful sale. Buyers tend to be attracted to a new roof as they’re reassured by the fact that they won’t have to think about replacing it for many years to come.
Trying to sell a home with an old and damaged roof could stir up some issues. If a home inspector finds that your roof has exceeded its expected lifespan or is not structurally sound, it could lead to potential buyers backing out of the sale.
But again, if you’re unsure about the state of your roof and whether a replacement would be worth the investment, it’s best to consult a professional. A roof inspection will determine its current condition, and you can be advised about whether or not you should carry out any repairs or replace the whole thing before selling your home.
Adam Graham is an industry analyst at Fixr.com. He analyzes and writes about the real estate and home construction industries, covering a range of associated topics. He has been featured in publications such as Better Homes and Gardens and The Boston Globe and has written for various outlets including the National Association of Realtors, and Insurance News Net Magazine.