What Is a New Roof’s ROI?

Replacing your roof has many benefits, such as preventing leaks, improving safety from extreme weather, and increasing energy efficiency. But how does a new roof impact your home’s resale value? A new roof’s ROI averages between 48% and 57% for most homeowners, however, you could get as much as 70% under the right conditions. You can expect a recouped amount of between $2,900 and $7,500 when you add a new roof to your home.

There are plenty of reasons to replace your roof while living in your home, but should you replace it just to increase your home’s resale value? 

Factors That Influence New Roof ROI Value

When considering exterior home projects with the most significant ROI, a new roof’s ROI falls right in the middle. It’s not the biggest bang-for-your-buck project, but it does provide some recouped costs. However, some factors impact how much (or how little) you’ll get back from this project. 

Location

The geographical location of your home will impact your new roof’s ROI value, sometimes more than you’d think. Areas with extreme weather conditions like high winds and heavy precipitation will deteriorate roofs faster than areas with mild weather. This means roofs in milder climates will be longer-lasting and have a larger ROI than those in extreme climates, where they need to be replaced more often. 

Roof Size

The size of your roof will help determine your overall cost—the bigger the roof, the more materials and labor are needed to replace it. A new roof’s ROI percentage isn’t necessarily impacted by the size, but rather, you won’t expect any additional gains from having a larger roof. The only outcome is a bigger price tag and heftier ROI amount loss. 

For example, a smaller roof that costs $6,000 will net you an ROI of approximately $2,900 to $3,500. A larger roof that costs $15,000 will net you an approximate ROI value of $7,200 to $8,600, which is still only 48% to 57% of the total project cost. You can’t do much to change the size of your roof, but it’s good to know how this will affect your potential ROI. 

Roof Complexity

Does your roof have multiple peaks, angles, or slopes? If it does, your cost to install a new roof will be higher to account for the extra materials and labor required to install it correctly. What does this mean for your new roof’s ROI? Essentially, the extra cost to install your new roof will not increase the ROI you get back. You’ll get the same return percentage—usually somewhere between 48% and 57%—whether you spend lavishly or cost-effectively. 

Roof Materials

The materials you use for your roof will impact your new roof’s ROI, and sometimes by a large margin. Not all roofing materials are the same—some are longer lasting than others, and some are more aesthetically pleasing to the eye. Plus, some are simply better suited for certain geographic locations than others. Your new roof’s ROI is not always correlated with cost, meaning a higher up front cost does not always equate to a higher ROI. 

DIY vs. Hiring a Pro

While it is possible to build a new roof by yourself, it’s most certainly not recommended unless you have several years of contracting experience. Adding a new roof to your home takes time, skill, and knowledge (and often a crew of several people). 

This job is best suited for a roofing pro for several reasons, but one of the most important is that a pro with the experience can net you the maximum ROI value for this project. A non-perfect DIY job could leave behind a roof that needs repair, which certainly won’t help the resale value of your home. Not to mention, having a pro take on this job is just safer, as you won’t be putting yourself in a path of danger. 

Time of Home Sale

Adding a new roof to your home to increase resale value is a good strategy—after all, no one wants to immediately replace a roof on a house they just bought. However, the timeframe between installing the new roof and listing the house for sale is important if you choose this strategy. 

The resale value of your new roof will diminish as the years go on. You’ll undoubtedly get a larger return on your investment if you sell your house within the first year or two of the roof being new versus year ten, for example. Since roofs last between 15 and 30 years on average, you’ll see a more significant ROI on your new roof if you plan to sell soon after replacement. 

How to Estimate the Added Value of a New Roof 

Here are a few steps you can take to help estimate the added value of a new roof for your home:

1. Consider your needs. Do you need to replace your roof now due to damage, or are you looking to upgrade it to sell? Having a safe roof is invaluable, but if you are years away from selling your home, your ROI will start to diminish. 

2. Evaluate materials. A more expensive roof does not always equate to a higher ROI. Decide on materials that make sense for your roof, considering the size. 

3. Consider the neighborhood. Are homebuyers scooping up move-in-ready houses? If so, a new roof will help you net your asking price (or more). 

4. Get appraised. You can hire a property appraiser to assess your home's current value and estimate the potential value increase with a new roof. 

5. Talk to a pro. A local roof installer can discuss the best options for your roof based on your home and location to help determine your potential ROI.  

Cost to Install a New Roof

The average cost of a new roof is between $5,900 and $13,200 for most homeowners. However, that cost could fluctuate depending on your location and the roofing materials you choose. For example: 

• The cost of a steel roof ranges from $16,000 to $28,000 on average

• The cost of a cedar shake roof ranges from $10,200 to $25,500 

• The cost of a tile roof can range from $8,500 to $26,500 for most homeowners

• The cost of a slate roof averages between $4,400 and $22,000

• The cost of a composite shingle roof ranges from $15,000 to $25,000 on average 

• The cost of a rubber roof ranges from $6,000 to $18,000 for most homeowners  

• The average cost of a metal roof is between $5,700 and $17,600

• The cost of a new copper roof ranges between $45,000 and $90,000

• The average cost of a tin roof is between $7,500 and $18,000

• The average cost of a shingle roof is between $7,500 and $18,000

• The average cost of an aluminum roof is between $6,900 to $21,900 

As you can see, your price for a new roof can vary widely. And because of that, your new roof ROI can fluctuate widely, too. As a guide, you can expect to see an ROI of between 48% and 57%, with some roofing options returning up to 70%. For a shingle roof, you can expect an ROI of between $3,600 and $10,260, based on average costs. 

To get a more accurate quote for your project and determine an estimated ROI, consult a local roofing company near you. 

Is a New Roof Worth It? 

Overall, there are a few considerations when weighing if replacing a roof is worth it for its ROI value.  It’s crucial to weigh the cost of a new roof with what you’ll actually recoup—since you won’t get back everything you pay to install it, it’s only worth adding a new roof to your home in a few situations. 

Of course, one of the biggest considerations is your existing roof’s age—if it’s a relatively new roof, there’s no significant benefit to replacing it. Likewise, if your roof only needs a minor repair, replacing the whole roof might not be cost-effective and will certainly not return a large enough ROI percentage to make it worth it. 

On the other hand, if you plan to sell your home soon and have a dated roof, it’s a good idea to replace it. This helps attract buyers and can help you get your list price (or more, in some situations). It’s always best to consult your local roofing contractor to determine if a new roof is worth it for your home. 

How Angi Gets Its ROI Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners maximize the value of their investments, we gather ROI data from reputable sources, including industry reports, real estate studies, and interviews with market experts. We calculate the average resale value for projects by multiplying the ROI against the project’s average cost according to our cost data, which is sourced from thousands of real Angi customers. 

Want to help us improve our data? Send us a recent project quote or home appraisal value to [email protected]. Quotes and personal information will not be shared publicly.