{"id":540997,"date":"2026-07-16T17:57:19","date_gmt":"2026-07-16T17:57:19","guid":{"rendered":"https:\/\/www.newjerseyheadlines.com\/news\/story\/540997\/americas-most-expensive-states-for-home-improvement-contractors-revealed.html"},"modified":"2026-07-16T17:57:19","modified_gmt":"2026-07-16T17:57:19","slug":"americas-most-expensive-states-for-home-improvement-contractors-revealed","status":"publish","type":"post","link":"http:\/\/www.northcarolinaheadlines.com\/news\/story\/540997\/americas-most-expensive-states-for-home-improvement-contractors-revealed.html","title":{"rendered":"America\u2019s Most Expensive States for Home Improvement Contractors Revealed"},"content":{"rendered":"<div style=\"font-style:italic;padding:8px 0px\">Pasha Funding analysis identifies Hawaii, California and New York as the costliest states for operating a home improvement contracting business<\/div>\n<p style=\"text-align: justify\"><strong>TAMPA, Fla. &#8211; July 16, 2026 &#8211;<\/strong>&nbsp;Hawaii is the most expensive state in America for home improvement contractors, followed by California and New York, according to a new Pasha Funding analysis of publicly available labor, price, tax and energy data.<\/p>\n<p style=\"text-align: justify\">The analysis compared all 50 states using four expenses that can substantially affect the cost of running a roofing, HVAC, plumbing, electrical, painting, flooring or remodeling business:<\/p>\n<ul style=\"text-align: justify\">\n<li>Construction and extraction wages<\/li>\n<li>Overall state price levels<\/li>\n<li>State tax competitiveness<\/li>\n<li>Commercial electricity prices<\/li>\n<\/ul>\n<p style=\"text-align: justify\">Each factor was standardized and weighted to create a consistent state-by-state comparison. Labor received the greatest weight because payroll is one of the largest recurring expenses for many home improvement businesses.<\/p>\n<p style=\"text-align: justify\">&ldquo;Homeowners see the final estimate, but they do not always see the cost of operating the business behind it,&rdquo; said Pavel Khaykin, founder of Pasha Funding. &ldquo;Contractors must pay skilled employees, maintain vehicles and equipment, carry insurance, market their services, comply with licensing requirements and cover everyday overhead before a project begins.&rdquo;<\/p>\n<p style=\"text-align: justify\">Top 10 Most Expensive States for Home Improvement Contractors<\/p>\n<p style=\"text-align: justify\">Based on Pasha Funding&rsquo;s analysis, the 10 most expensive states for operating a home improvement contracting business are:<\/p>\n<ol style=\"text-align: justify\">\n<li><strong>Hawaii<\/strong><\/li>\n<li><strong>California<\/strong><\/li>\n<li><strong>New York<\/strong><\/li>\n<li><strong>Massachusetts<\/strong><\/li>\n<li><strong>New Jersey<\/strong><\/li>\n<li><strong>Connecticut<\/strong><\/li>\n<li><strong>Washington<\/strong><\/li>\n<li><strong>Alaska<\/strong><\/li>\n<li><strong>Rhode Island<\/strong><\/li>\n<li><strong>Oregon<\/strong><\/li>\n<\/ol>\n<p style=\"text-align: justify\">The ranking measures relative operating cost pressure. It does not measure contractor profitability, project demand, construction quality or the prices charged by any individual business.<\/p>\n<p style=\"text-align: justify\">Hawaii Ranks as the Most Expensive State<\/p>\n<p style=\"text-align: justify\">Hawaii&rsquo;s combination of high overall prices and unusually expensive energy pushed it to the top of the ranking.<\/p>\n<p style=\"text-align: justify\">The U.S. Bureau of Economic Analysis reported that Hawaii had the country&rsquo;s second-highest state price level in 2024, behind only California. The U.S. Energy Information Administration also reported that Hawaii had the highest average retail electricity price in the country in 2025.<\/p>\n<p style=\"text-align: justify\">For contractors, the state&rsquo;s geographic isolation can create additional practical challenges. Vehicles, tools, replacement parts and construction materials frequently must travel farther before reaching local businesses and jobsites.<\/p>\n<p style=\"text-align: justify\">California Places Second<\/p>\n<p style=\"text-align: justify\">California had the highest regional price parity among the 50 states in 2024, with prices approximately 10.7% above the national level. It also ranked near the bottom of the Tax Foundation&rsquo;s 2026 State Tax Competitiveness Index.<\/p>\n<p style=\"text-align: justify\">High wages and operating expenses can place significant pressure on home improvement companies, particularly businesses that employ large crews or operate fleets across expensive metropolitan markets.<\/p>\n<p style=\"text-align: justify\">New York Ranks Third<\/p>\n<p style=\"text-align: justify\">New York&rsquo;s high labor and regional operating costs, combined with the least competitive state tax structure in the Tax Foundation&rsquo;s 2026 index, placed it third. The state also had one of the country&rsquo;s higher commercial electricity prices in April 2026.<\/p>\n<p style=\"text-align: justify\">Contractors serving New York City and other high-cost markets may face additional expenses related to parking, transportation, permitting, storage and access to crowded jobsites.<\/p>\n<p style=\"text-align: justify\">The Northeast Dominates the Top 10<\/p>\n<p style=\"text-align: justify\">Five of the 10 highest-cost states are in the Northeast:<\/p>\n<ul style=\"text-align: justify\">\n<li>New York<\/li>\n<li>Massachusetts<\/li>\n<li>New Jersey<\/li>\n<li>Connecticut<\/li>\n<li>Rhode Island<\/li>\n<\/ul>\n<p style=\"text-align: justify\">Commercial electricity prices in April 2026 were 24.02 cents per kilowatt-hour in Massachusetts, 23.56 cents in Connecticut, 22.31 cents in Rhode Island and 21.88 cents in New York. Each was well above the rates reported in many states in the Midwest and South.<\/p>\n<p style=\"text-align: justify\">Several Northeastern states also combine higher price levels with less competitive tax structures. The Tax Foundation ranked New York 50th, New Jersey 49th, Connecticut 47th, Massachusetts 43rd and Rhode Island 40th in its 2026 index.<\/p>\n<p style=\"text-align: justify\">Why Contractor Operating Costs Matter to Homeowners<\/p>\n<p style=\"text-align: justify\">Home improvement estimates account for much more than the hours spent working inside or outside a customer&rsquo;s property.<\/p>\n<p style=\"text-align: justify\">Contractors may need to cover:<\/p>\n<ul style=\"text-align: justify\">\n<li>Employee wages and payroll taxes<\/li>\n<li>General liability and workers&rsquo; compensation insurance<\/li>\n<li>Trucks, vans, fuel and vehicle maintenance<\/li>\n<li>Tools and specialized equipment<\/li>\n<li>Licensing, permits and continuing education<\/li>\n<li>Office and administrative staff<\/li>\n<li>Estimating and project-management software<\/li>\n<li>Advertising and customer acquisition<\/li>\n<li>Warranty work and return visits<\/li>\n<li>Rent, utilities and storage<\/li>\n<\/ul>\n<p style=\"text-align: justify\">These expenses vary by company and location, but they ultimately influence how contractors price their services.<\/p>\n<p style=\"text-align: justify\">A roofing contractor in Hawaii or California may operate under very different economic conditions than a roofing contractor performing a similar project in Arkansas, Mississippi or Oklahoma, where overall state price levels are among the lowest in the country.<\/p>\n<p style=\"text-align: justify\">&ldquo;Two contractors can complete similar work and still face very different costs simply because of where their businesses operate,&rdquo; Khaykin said. &ldquo;That is one reason homeowners should avoid comparing estimates based only on the final number. Licensing, insurance, workmanship, materials, warranties and the contractor&rsquo;s ability to complete the project responsibly also matter.&rdquo;<\/p>\n<p style=\"text-align: justify\">Higher Estimates Can Create Affordability Challenges<\/p>\n<p style=\"text-align: justify\">As wages and operating costs increase, contractors may have limited room to reduce prices without cutting their margins, changing materials or reducing the project scope.<\/p>\n<p style=\"text-align: justify\">This can leave homeowners struggling to pay for essential projects such as:<\/p>\n<ul style=\"text-align: justify\">\n<li>Roof replacement<\/li>\n<li>HVAC installation<\/li>\n<li>Plumbing and sewer repairs<\/li>\n<li>Electrical upgrades<\/li>\n<li>Window and door replacement<\/li>\n<li>Siding installation<\/li>\n<li>Bathroom and kitchen remodeling<\/li>\n<li>Flooring and painting<\/li>\n<li>Insulation and energy improvements<\/li>\n<\/ul>\n<p style=\"text-align: justify\">Customer financing gives qualified homeowners an opportunity to review potential monthly payment options instead of paying the entire project price at once.<\/p>\n<p style=\"text-align: justify\">For contractors, offering financing can provide another way to address affordability concerns without automatically relying on discounts.<\/p>\n<p style=\"text-align: justify\">Methodology<\/p>\n<p style=\"text-align: justify\">Pasha Funding compared all 50 states using the latest publicly available data in four categories:<\/p>\n<ul style=\"text-align: justify\">\n<li><strong>Construction labor costs: 40%<\/strong><\/li>\n<li><strong>Regional price levels: 25%<\/strong><\/li>\n<li><strong>State tax competitiveness: 20%<\/strong><\/li>\n<li><strong>Commercial electricity prices: 15%<\/strong><\/li>\n<\/ul>\n<p style=\"text-align: justify\">Construction wage information was obtained from the U.S. Bureau of Labor Statistics&rsquo; May 2025 Occupational Employment and Wage Statistics. Regional price parity data came from the U.S. Bureau of Economic Analysis and reflects 2024 state price levels. Commercial electricity prices came from the U.S. Energy Information Administration. State tax rankings came from the Tax Foundation&rsquo;s 2026 State Tax Competitiveness Index.<\/p>\n<p style=\"text-align: justify\">The values in each category were normalized so that states could be compared across datasets with different measurement units. The normalized results were then combined using the stated weights.<\/p>\n<p style=\"text-align: justify\">The analysis measures broad state-level operating conditions. It does not account for every expense faced by an individual contractor, including insurance premiums, local permit costs, material prices, licensing fees, commercial rent or city-level differences.<\/p>\n<p style=\"text-align: justify\"><strong>About Pasha Funding<\/strong><\/p>\n<p style=\"text-align: justify\">Pasha Funding helps home improvement contractors connect their customers with financing options from a network of third-party lending partners. Contractors can introduce financing during the estimate process, while qualified customers can review available offers and decide whether a payment option fits their needs and budget.<\/p>\n<p style=\"text-align: justify\">Pasha Funding is a financing marketplace and is not a lender. Credit decisions, rates, terms, funding requirements and loan availability are determined by individual lending partners.<\/p>\n<p style=\"text-align: justify\">For media inquiries please contact:<\/p>\n<p style=\"text-align: justify\"><strong>Pavel Khaykin<\/strong><\/p>\n<p style=\"text-align: justify\">Founder &amp; CEO, Pasha Funding<\/p>\n<p style=\"text-align: justify\">pavel.k@pashafunding.com<\/p>\n<p style=\"text-align: justify\">(813) 816-0709<\/p>\n<p style=\"text-align: justify\"><a rel=\"nofollow\" href=\"https:\/\/pashafunding.com\/\">https:\/\/pashafunding.com\/<\/a><\/p>\n<p class=\"caps\"><span style='font-size:18px !important'>Media Contact<\/span><br \/><strong>Company Name:<\/strong> <a rel=\"nofollow\" href=\"https:\/\/www.abnewswire.com\/companyname\/pashafunding.com_192269.html\">Pasha Funding<\/a><br \/><strong>Contact Person:<\/strong> Pavel Khaykin<br \/><strong>Email:<\/strong> <a rel=\"nofollow\" href=\"https:\/\/www.abnewswire.com\/email_contact_us.php?pr=americas-most-expensive-states-for-home-improvement-contractors-revealed\">Send Email<\/a><br \/><strong>Country:<\/strong> United States<br \/><strong>Website:<\/strong> <a rel=\"nofollow noopener\" href=\"https:\/\/www.pashafunding.com\/\" target=\"_blank\">https:\/\/www.pashafunding.com\/<\/a><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/www.abnewswire.com\/press_stat.php?pr=americas-most-expensive-states-for-home-improvement-contractors-revealed\" alt=\"\" width=\"1px\" height=\"1px\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Pasha Funding analysis identifies Hawaii, California and New York as the costliest states for operating a home improvement contracting business TAMPA, Fla. &#8211; July 16, 2026 &#8211;&nbsp;Hawaii is the most<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/posts\/540997"}],"collection":[{"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/comments?post=540997"}],"version-history":[{"count":0,"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/posts\/540997\/revisions"}],"wp:attachment":[{"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/media?parent=540997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/categories?post=540997"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.northcarolinaheadlines.com\/news\/wp-json\/wp\/v2\/tags?post=540997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}