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Roofs play a vital role in making homes safe, comfortable and resilient. A high-quality roof can improve a home’s curb appeal, raise the resale value and even increase its overall energy efficiency.
But for many homeowners, it is becoming increasingly difficult to afford roofing projects upfront. In today’s economy, almost forty percent of Americans have less in emergency savings than a year ago.
Low monthly payments through financing options can help homeowners afford higher quality roofing — and help contractors increase their margins.
Why is there an increased need for financing in the roofing industry?
To help projects fit tight homeowner budgets
To offset increases in labor and material costs
To allow for higher quality roofing and business growth
To help projects fit tight homeowner budgets
Economic challenges don’t stop homeowners from needing a roofing repair or replacement, it just makes it harder for them to afford it. According to Bankrate, nearly three in four Americans are saving less due to economic factors. And when homeowners are struggling to cover expenses, many may turn to credit cards, which can include high APR rates.
Flexible home improvement loan options can be a great alternative to high-interest, hidden-fee credit cards. Financing options can also make the unplanned purchase easier on homeowners, turning steep project costs into manageable monthly payments. Homeowners with less disposable income may rely on these alternatives to get their project started and completed.
To offset increases in labor and material costs
Roofing projects are getting more expensive. Four in five respondents in a study done by Roofing Contractor report increased labor costs ranging from 11%–30%. Supply chain shortages have led to increased material costs, with 55% of contractors identifying this as a top challenge for the industry.
These economic factors can lose contractors valuable business opportunities if they aren’t adjusting their sales strategy. Financing options can offset some of the price hikes, allowing homeowners to afford the repairs they need now, and comfortably make payments later. With these adjustments, contractors can keep business steady, even with unsteady market conditions.
To allow for higher quality roofing and business growth
Financing options can help homeowners do more than fund their next project. Manageable monthly payments can help them afford the best quality materials and reap the benefits from it. A higher quality roof leads to less costly repairs down the road, less energy loss, more weather resilience and even lower utility bills.
Selling higher quality materials also benefits contractors by increasing customer satisfaction — while also growing their business. With so many benefits for both homeowners and contractors, it's easy to see why financing options are the future of roofing.
National Roofing Week may be coming to a close, but let’s continue to thank roofing contractors year-round for the work that they do! Hear what a few of your colleagues love most about working in the roofing industry. Watch their short videos here.
Home Improvement loans through the Mosaic platform are issued by WebBank, Equal Housing Lender