PriceReality

We Expected States With More Tradespeople to Pay Them Less. The Data Says No

This is a methods piece. It reports a null result from our own data rather than a finding.

 

By PriceReality Editorial· Type estimate range, not a quote

The theory

It is a reasonable thing to believe. If a state has three times as many roofers per resident as its neighbour, competition should push the price of a roofing hour down.

We have employment counts and wages for ten trades across 51 states, so this is testable.

The test

Pearson correlation between state employment and state median pay
TradeCorrelation (employment vs pay)
Carpenters+0.32
Floor Layers+0.24
Painters, Construction and Maintenance+0.15
Drywall and Ceiling Tile Installers+0.12
Tile and Stone Setters+0.09
Roofers+0.06
Plumbers, Pipefitters and Steamfitters+0.03
Construction Laborers-0.02
Electricians-0.04
Cement Masons and Concrete Finishers-0.07

A correlation of zero means the two numbers move independently. A positive number means more tradespeople go with higher pay, which is the opposite of the theory.

Carpenters are the strongest at +0.32, and that is almost certainly a size effect: big states have both more carpenters and higher wages, and the two are being read as a relationship.

Why the theory fails

Geography is doing the work. Florida and Texas have the most roofers and below-average pay. Illinois has a twentieth as many and the highest pay. Both patterns are explained by state size and local price levels, not by a supply curve.

Wages are sticky in both directions. A market with too many roofers does not see pay fall quickly, because the workers leave or move to other trades first.

The buyer does not see the market. You get three quotes, not thirty. The price you pay reflects those three contractors' backlogs, not the state aggregate.

What this means for the site

We do not use employment counts to adjust any calculator on this site. The adjustment is the state wage median, and nothing else.

It is worth saying plainly: a plausible theory that the data does not support should be reported as unsupported. That is the difference between an analysis and an argument.

See cost by project size

Frequently asked

So what does drive prices between states?

Wage levels and local price levels, in that order. Employment counts do not add explanatory power in this dataset.

Could the correlation be real but hidden?

Possibly. A per-capita measure would be better than a raw count, and we do not have state population in this dataset. That is a limitation, stated rather than papered over.

Updated October 2026

Data note: Pearson correlation computed across the 51 state observations for each trade, using OEWS employment counts and median annual pay from a public-domain mirror (quanna1210/us-wages-cost-of-living). Raw counts rather than per-capita, which is a known confounder in this test.