Home renovation costs 101

Most homeowners undertaking a renovation have one thing on their mind: money. How much can they afford, how much will it cost, how much will their renovations boost their home’s value? Unfortunately, there are no easy answers to these questions. It all comes down to the individual home and home renovation.

For homeowners scoping out a possible remodel, though, it can be useful to get a sense of how much home renovations typically cost. This guide breaks down the most common renovations and typical spend, as well as the factors that have the biggest impact on their bottom line. Consider it essential reading for anyone contemplating remodeling their home.

How much does it cost to renovate a house?

The cost to renovate a house can span $15,000 to $200,000 or more, depending on the size of the house, the scope of the renovation, the location, the quality of materials used, and the complexity of the project. On average, homeowners typically spend anywhere from  $17,803 to $79,870, according to HomeAdvisor.

That’s a big range, and the only way to truly know how much your home renovation will cost is to obtain detailed quotes from contractors and professionals in your area. Additionally, factoring in design fees, permits, unexpected expenses, and additional costs such as furniture and landscaping is important to create a comprehensive budget for your renovation project.

Factors affecting the cost of renovation

If you want to estimate the cost of your home renovation before speaking to a contractor, it’s important to understand the role the following factors play in determining your home renovation budget. Doing so not only helps you plan for your renovation, but also helps to find the right contractor for your project.

Size and scope of the project

The size and scope of the renovation project play a significant role in determining the overall cost of your home renovation. Larger projects that involve extensive changes, additions, or structural modifications will generally require more materials, labor, and time, resulting in higher costs.

Materials and finishes

The choice of materials and finishes can greatly impact the cost. High-end or custom materials, such as premium flooring, countertops, fixtures, or appliances, will come at a higher price point compared to standard or budget-friendly options. Consider the quality and durability of materials within your budget.

Labor and contractor fees

Labor costs make up a significant portion of the renovation budget. The complexity of the project, skilled tradespeople required, and local labor rates can influence the overall labor costs.

While it may be tempting to use the high cost of labor as an excuse to do-it-yourself, consider that in a recent survey of renovation leads and real estate agents at Orchard, only 2% recommended that homeowners consider doing the work themselves.

That’s because the workmanship is often not up to par with those of highly skilled craftsmen, and may hurt your home value down the line. Plus, hiring experienced and reputable contractors may end up saving you money simply because they can get the work done faster and more effectively.

Structural changes and building codes

Structural changes, like repairing a foundation, are among the most expensive home renovation projects. Not only are these projects labor and materials intensive, but they require significant planning and permitting.

If your renovation involves structural changes, such as removing walls or adding new windows or doors, additional costs may be incurred for engineering assessments, permits, and compliance with building codes. Ensuring the project meets safety standards is crucial, and these factors can impact the budget.

Plumbing, electrical, and HVAC upgrades

If your renovation involves updating or relocating plumbing, electrical, or HVAC systems, it can take up a significant portion of your budget. For example, replacing an HVAC system can cost as much as $8,000.

However, upgrading these systems may be necessary to meet current codes, accommodate new fixtures, or improve energy efficiency, which can help make the initial cost worth it.

Design and architectural services

Hiring design professionals, architects, or interior designers can add to the cost but can provide valuable expertise, guidance, and detailed plans for your renovation project. The level of involvement and complexity of the design can impact the fees. Architects typically charge a fee based on the total costs of the project, but may also charge a few hundred per hour.

Location

The cost of home renovations can vary depending on your home’s location. Factors such as local labor rates, availability of materials, and regional economic conditions are variable to local markets and can significantly influence the overall cost of your project. Research local market conditions before taking on a project to help you gauge the potential costs in your area.

Timeline and project management

The duration of the renovation project can impact the cost. Extending the timeline may result in additional labor costs or the need for temporary accommodations, while efficient project management and clear communication with contractors can help minimize delays and associated costs. Additionally, if you need your project completed fast, you’ll likely have to pay more to meet a strict deadline.

Average home renovation costs by project

The cost of a home renovation will depend on the scope of the project. For example, a small bathroom renovation costs as little as $1,000 to $5,000, while a home addition can cost as much as $200,000. We broke down some of the most common projects to give you a sense of the average cost to renovate.

Remember, these are average cost ranges, and the actual costs for your specific renovation project may differ. It's crucial to obtain multiple quotes, carefully plan your renovation, and work with experienced professionals to get accurate cost estimates tailored to your needs.

Related: How to calculate a house’s square footage

Tips for a cost-effective house renovation

If you want to save money on your home renovation, follow these eight tips.

1. Plan and budget

Start by creating a detailed renovation plan and establish a realistic budget. Identify your priorities and focus on essential improvements. A clear plan will help you stay organized and avoid unnecessary expenses.

2. DIY vs. hiring professionals

Determine which tasks you can handle yourself and where it's best to hire professionals. While DIY can save money, be realistic about your skills and consider outsourcing complex or specialized work to ensure quality and avoid costly mistakes.

3. Research and compare quotes

Get multiple quotes from reputable contractors and suppliers. Compare prices, services, and reviews to ensure you're getting the best value for your money. Don't forget to check for any warranties or guarantees offered.

4. Repurpose and reuse

Look for opportunities to repurpose existing materials and fixtures instead of buying new ones. Consider refinishing or repainting cabinets, using salvaged materials, or updating hardware to give a fresh look without breaking the bank.

5. Energy-efficient upgrades

Invest in energy-efficient upgrades during your renovation. This could include installing LED lighting, improving insulation, upgrading windows, or selecting energy-efficient appliances. These upgrades can save you money on utility bills in the long run, and you may even be take advantage of a residential energy credit.

6. Timing and seasonal sales

Take advantage of seasonal sales, discounts, and promotions for materials and appliances. Plan your renovation during off-peak seasons when contractors may offer better rates or have more availability.

7. Focus on value-adding projects

Prioritize renovations that add value to your home. Consider projects like kitchen and bathroom updates, adding extra living space, or improving curb appeal, as these improvements often have a high return on investment.

8. Proper maintenance

Regularly maintain your home to prevent costly repairs or renovations down the line. Stay proactive with tasks like cleaning gutters, sealing cracks, and servicing HVAC systems to prolong their lifespan and minimize future expenses.

Remember, while cost-saving is essential, it's equally important to maintain quality and ensure that renovations meet safety standards and building codes. Consulting with professionals and conducting thorough research will help you achieve a successful and cost-effective house renovation.

Home renovation costs FAQs

Homeowners have a lot of questions when it comes to home renovations. Here are answers to some of the most commonly asked questions.

How much does it cost to remodel an entire house?

The cost of a full house remodel can vary significantly based on factors such as the size of the house, the level of renovation desired (cosmetic updates vs. structural changes), the quality of materials, and the geographic location. On average, a comprehensive house renovation can cost anywhere from $50,000 to $150,000 or more. It's important to note that this is a general range, and the actual cost will depend on individual project specifications.

How much does it typically cost to renovate a kitchen?

The cost of kitchen renovation can vary widely depending on factors such as the size of the kitchen, the quality of materials used, and the complexity of the project. On average, a moderate kitchen renovation can range from $15,000 to $30,000, while a high-end renovation can cost $50,000 or more.

What is the average cost of renovating a bathroom?

The cost of bathroom renovation depends on various factors, including the size of the bathroom, the extent of the remodeling, the quality of fixtures and finishes, and the geographic location. On average, a mid-range bathroom renovation can cost between $10,000 and $20,000, while a high-end renovation can range from $30,000 to $50,000 or more.