These days, most contractors have more work than they know what to do with as the industry struggles with a protracted labor shortage. So maybe it’s no surprise that the average cost per lead for replacement contractors has gone down since last year.

In fact, the average cost per lead dropped 10.6% compared to 2017 from $272.43 to $242. 53, according to data from the 2018 Remodeling 550. The drop is even bigger when compared to the last four years when the highest average cost per lead was $280.16 in 2015.

It’s possible those decreases reflect the ongoing labor shortages many contractors are grappling with as the unemployment rate hovers near just 4% — the lowest rate since 2000. Recent NAHB statistics show that nearly 60% of roofers are facing labor shortages. Additionally, 91% of remodelers reported shortages of labor available to perform finished or rough carpentry work, and more than 40% said these shortages were serious, in response to special questions on NAHB’s Remodeling Market Index (RMI) survey for the 3rd quarter of 2017.

Another possible explanation for the drop in cost per leads may be the continued migration from traditional media to online lead generation. For example, many top contractors report that they are using Facebook advertising as a powerful lead generator for a fraction of the cost of print, television or radio.

The Remodeling 550 membership varies a bit each year as companies enter and exit the list for a variety of reasons, such as if they were bought or began to be publicly traded.