Q1 2025 Roofing Pricing Outlook: What Verisk’s Update Means for Your Supplements

For roofers and roofing GCs who live inside Xactimate and need clean, defensible roofing supplements, here’s what the latest Verisk pricing tells us—and how to translate it into higher‑quality estimates and faster approvals.

Summary (for roofers)

• • Materials + labor kept climbing in Q1 2025. Nationally, combined labor‑and‑material costs rose 1.00% in the U.S. for the quarter.
  • Labor is still the bigger driver over a 12‑month window, with combined hourly billable rates up 5.60% year‑over‑year (Apr ’24 → Apr ’25).
  • Roofing material led all material categories: +2.83% year‑over‑year in the U.S. (and +4.01% in Canada).
  • Roofer labor rates rose the least this quarter among U.S. trades—+0.55%—even as “membrane roofing installer” posted +1.06%. Translation: materials are where margin goes missing first.
  • Fuel bounced back (+3.63% in the U.S. for the quarter), affecting delivery, dump, and haul‑off.
  • Reconstruction costs are still trending up (+4.7% YoY for U.S. residential; Kansas +6.95%, Oregon +6.81%, Georgia +6.53%).

What changed in Q1—through a roofing lens

1) Materials: the silent escalator
Verisk’s Key Materials table shows roofing material had the largest annual increase among tracked categories (U.S. +2.83%). Drywall led quarterly gains in the U.S. (+0.97%), but the roofing basket is the one roofers feel daily—shingles, underlayment, fasteners, vents, ridge/hip caps, metals. See page 15.

The Material Composite Index confirms steady pressure through March and April, culminating in a 2.42% U.S. increase year‑over‑year. See the chart on page 16.

2) Lumber: mixed signals underneath the roof deck
Decking and sheathing are behaving differently from dimensional lumber. Year‑over‑year, sheathing is down 2.77% in the U.S., while dimensional lumber is up 1.31%; in the most recent quarter, sheathing ticked +0.63% in the U.S. These component‑level nuances matter when you argue for deck repairs or sheet replacements by square footage. See lumber charts on page 17.

3) Labor: overall hot, roofer‑specific cooler
Across trades, combined hourly billable labor rose 5.60% YoY. But roofer rates posted the lowest quarterly change in the U.S. (+0.55%), and the lowest 12‑month gain (+2.61%) among U.S. trades. Don’t let that mislead an adjuster into assuming the job got easier—complexity, pitch/height factors, and safety still drive real labor time. See pages 13–14.

4) Fuel: back on the radar
After easing in late 2024, fuel rose 3.63% this quarter in the U.S. That supports carrier‑recognized charges like delivery, pickup, dump fees, and—depending on market documentation—fuel surcharges. See page 18.

5) Macro costs: your customers’ budgets didn’t get a raise
Residential reconstruction costs increased 4.7% YoY nationally, with certain states climbing faster. If you’re selling retail or negotiating ACV→RCV payouts, expectations need to be set early. See page 20.

Why adjusters push back—and how to win the file cleanly

Carriers read the same reports. They’ll see that roofer labor ticked up less than other trades and may argue that your labor line items should “hold steady.” Counter with three facts and documentation:

1. 1. Material inflation is leading the roofing category (U.S. +2.83% YoY), so material‑driven lines deserve precise quantities and brand‑correct pricing. Page 15.
   2. Complexity ≠ generic labor: Membrane installers rose +1.06% in the quarter; steep‑slope crews still face OSHA, anchor points, staging, and property protection time that generic roofer rates don’t capture unless you specify. Page 14.
   3. Fuel & logistics are real costs again (+3.63% Q/Q). Tie your dump/load tickets and vendor delivery fees to dates. Page 18.

Xactimate checklist: where roofing supplements win (2025 edition)

Use this as a pre‑submit audit for any roof replacement claim. Each item ties directly to pricing trends or code requirements that typically move the needle in today’s environment for roofing supplements:

Material‑sensitive lines (reflect latest pricing):

• • Manufacturer‑specified starter strip, ridge/hip caps, ridge vent and intake ventilation (by net length, not “lumped”). Roofing materials have the highest YoY increase; quantify precisely. Page 15.
  • Underlayment (per code/design): standard felt vs. synthetic; high‑wind/wind‑design assemblies; ice‑barrier in required zones. Cite local amendments.
  • Metal accessories: drip edge, valley metal, step and counter‑flashing, kick‑out flashing (often omitted, but required by code/manufacturer).
  • Deck repairs: sheathing price trends are distinct from dimensional lumber; do not price one as a proxy for the other. Include test‑cut documentation and photos. Page 17.

Labor & complexity (justify the time):

• • Steep/High charge (pitch & eave height), two‑story access, safety harness and fall protection setup, and property protection (shrub/AC/balcony covering). Overall labor is up 5.60% YoY across trades; complexity is where roofing captures legitimate time. Page 13.
  • Tear‑off, haul‑off, and dump with weights and receipts. Rising fuel supports logistics‑related lines in the estimate. Page 18.
  • Membrane areas (porches/low‑slope tie‑ins): treat separately; quarter‑over‑quarter, membrane installer rates climbed faster than generic roofer labor. Page 14.

Documentation that closes arguments:

• • Building code citations (PDF excerpts, page numbers, and the local amendment link).
  • Manufacturer installation instructions for system components and wind/ice assemblies.
  • Date‑stamped supplier quotes for shingles, underlayment, metals, and accessories to reflect current market—especially where tariffs or import exposure could affect roofing and gypsum inputs. Page 24.

Tariffs, immigration, and why adjusters’ macros lag reality

Verisk flags two structural pressures for 2025 that roofers should know cold when writing roofing insurance claim supplements:

• • Import exposure: The U.S. relies on imports for ~28% of softwood lumber, ~24% of concrete, and ~36% of gypsum (a drywall input). New tariffs create localized volatility—especially where supply chains are import‑heavy. When price sheets move mid‑job, update material quotes and attach them. Page 24.
  • Labor supply: Immigrant workers comprise 26% of the construction workforce. Policy shifts that constrain labor inflows can tighten certain trades (e.g., roofers, plasterers, drywall/ceilings), even if the headline “roofer rate” appears flat. Be ready to argue schedule compression costs and crew availability. Page 24.

Regional watchlist & outlook

• • Residential reconstruction costs rose 4.7% YoY nationwide, but the spread matters: Kansas (+6.95%), Oregon (+6.81%), Georgia (+6.53%) lead. If you operate in these states, standard carrier baselines may be furthest from jobsite reality. Page 20.
  • Market expectation (Verisk) for the next two quarters: residential reconstruction +2.60% (Apr → Oct 2025). Build that escalation into quotes and hold them only for defined windows. Page 20 (Future Outlook).

How to convert pricing data into faster approvals

1. 1. Refresh your templates monthly. Update roof system components (starter, ridge/hip, vents, ice barrier, drip edge) to supplier‑current pricing. Anchor each change with the supplier quote PDF. Roofing materials are the top mover YoY; don’t rely on last quarter’s numbers. Page 15.
   2. Separate assemblies by slope. Low‑slope tie‑ins, porch roofs, and transitions often justify separate labor and material logic (and different crews). Membrane installer rates suggest the differential. Page 14.
   3. Document logistics. Delivery constraints, long carries, and repeated dumps are more defensible with fuel receipts and haul tickets while fuel costs are up. Page 18.
   4. Lead with code. Wind‑design underlayment (e.g., double‑layer assemblies), ice‑barrier, ventilation balance, and kick‑out flashing—quote code section and page, paste the excerpt, and note inspection triggers.
   5. Forecast with the homeowner. Explain that reconstruction costs are trending upward; set expectations on lead times, PO validity, and why accurate supplements protect scope (and safety) rather than “inflating” the job. Page 20.

Where Estimate On Demand fits

EOD’s roofing supplement writing services plug directly into this environment. We track Verisk’s updates, reconcile them with local supplier quotes and building codes, and produce Xactimate roofing estimates that anticipate adjuster objections: material inflation on system components, membrane/low‑slope differentials, safety and access time, and code‑driven scope expansions. If a carrier macro lags current inputs, we show the page, the quote, and the line item math—so you can get to “yes” faster and keep crews moving.

Sources & figures noted

• • Combined labor & material +1.00% (U.S. Q1), labor +5.60% YoY, monthly labor trends, and roofer‑specific changes (pages 12–14).
  • Roofing material +2.83% YoY; Material Composite Index +2.42% YoY (pages 15–16).
  • Lumber component behavior—sheathing vs. dimensional (page 17).
  • Fuel +3.63% Q/Q (page 18).
  • Reconstruction cost growth and outlook (page 20).
  • Import exposure (lumber, concrete, gypsum) and construction workforce composition (page 24).