How Much Does Home Renovation Cost? (2024 Guide)
Typical cost range:
$40,000–$300,000
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A home that suited your needs 10 years ago may no longer be the best fit. Though you can sell your home and move into a more suitable one, you can also remodel your home to fit your current needs. Renovating a 2,000-square-foot home costs an average of $40,000–$300,000, depending on the project’s extent. We have broken down each price factor and provided saving tips.
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Basement finishing costs an average of $7–$23 per square foot of finished space.
GET QUOTEWhat Is A Home Renovation?
Home renovation is an umbrella term that includes many home improvement projects, from adding new paint or wallpaper to gutting a house down to the studs. The total cost of your project depends on numerous factors, so it’s a good idea to start with a budget in mind and decide which factors are most important to you.
What Factors Affect The Cost of a Home Renovation?
Here are the major factors that determine your renovation cost:
- Size: The larger the area you renovate, the more it will cost.
- Type: Some rooms or features are more costly to remodel than others.
- Labor: About half of professional remodeling costs go toward labor.
- Location: Renovation costs more in areas where the cost of living is higher.
Cost by Size
Size isn’t the best way to estimate home renovation costs, as some rooms cost much more to renovate than others. Renovations fall between a wide range of $20–$150 per square foot.
A low-end renovation ($20–$60 per square foot) keeps your home’s structure — including the roof and walls — intact. These renovations primarily use less-expensive finish materials such as laminate and vinyl, plus prefabricated units for things such as cabinetry and shower stalls. A mid-range renovation ($60–$100 per square foot) may include upgrades to home appliances and heat and air systems.
A high-end renovation ($100–$150 per square foot) usually includes structural changes as well as luxury appliances and materials such as hardwood or natural stone. It may also consist of a full gut and remodel of an older home.
| Square Footage | Low-End Cost | Mid-Range Cost | High-End Cost |
|---|---|---|---|
|
1,200 |
$24,000–$72,000 |
$72,000–$120,000 |
$120,000–$180,000 |
|
1,500 |
$30,000–$90,000 |
$90,000–$150,000 |
$150,000–$225,000 |
|
2,000 |
$40,000–$120,000 |
$120,000–$200,000 |
$200,000–$300,000 |
|
2,500 |
$50,000–$150,000 |
$150,000–$250,000 |
$250,000–$375,000 |
|
3,000 |
$60,000–$180,000 |
$180,000–$300,000 |
$300,000–$450,000 |
|
4,000 |
$80,000–$240,000 |
$240,000–$400,000 |
$400,000–$600,000 |
Cost by Renovation Types
The individual remodeling project or projects you choose also play a large role in the total cost. Expanding your home’s square footage by adding a room has the highest price tag. A kitchen remodel is typically more expensive than other rooms since it includes many trades as well as expensive appliances, cabinets, and countertops. Basement and bathroom remodels costs can be pricier as they usually include plumbing, electrical, and HVAC changes.
| Type | Cost |
|---|---|
|
Basement |
$12,000–$30,000 |
|
Bathroom |
$20,000–$38,000 |
|
Bedroom |
$10,000–$15,000 |
|
Deck addition |
$15,000–$20,000 |
|
Garage |
$7,000–$15,000 |
|
House exterior |
$5,000–$15,000 |
|
Kitchen |
$23,000–$135,000 |
|
Living room |
$10,000–$15,000 |
|
Roof replacement |
$8,500–$14,300 |
|
Room addition |
$135,000–$282,000 |
Labor Cost
About half of professional home remodeling costs go toward labor. The exact trades you need depend on the project, and those that require licensing in your state typically cost more. Pricing may be done by the project or by the hour. Hiring a general contractor to oversee the project will cost an additional 10% to 20% of the total cost.
Average Hourly Cost of Labor
| Contractor Type | Hourly Rate |
|---|---|
|
Architect |
$125–$250 |
|
Carpenter |
$35–$90 |
|
Electrician |
$40–$120 |
|
Flooring |
$40–$100 |
|
HVAC |
$75–$150 |
|
Painter |
$20–$50 |
|
Plumber |
$75–$130 |
|
Roofer |
$45–$75 |
Cost by Location
Your location also impacts renovation costs. Heavily populated urban areas usually cost the most. For example, Bay Area residents may pay up to 40% more than people living in Alabama or Mississippi. Very rural areas might also incur higher costs if contractors need to travel or transport materials over long distances.
Average Cost of Common Remodeling Jobs by Region
Here are some averages for a few common remodeling jobs in different parts of the country.
| Region | Minor Kitchen Remodel | Mid-Range Bathroom Remodel | Asphalt Shingle Roof Replacement |
|---|---|---|---|
|
National Average |
$28,279 |
$27,164 |
$31,535 |
|
Mid-Atlantic |
$29,701 |
$29,554 |
$36,092 |
|
Mountain States |
$27,436 |
$25,802 |
$29,535 |
|
New England |
$29,911 |
$29,277 |
$35,395 |
|
Pacific States |
$31,413 |
$31,561 |
$35,606 |
|
Southeast |
$26,921 |
$25,318 |
$29,186 |
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What Are Additional Remodeling Cost Considerations?
Here are some other factors that impact how much your home renovation will cost.
Age of Home
Older homes are often more costly to renovate. The home’s structure may need more repair or require retrofitting for new amenities and appliances. These homes may also contain asbestos or lead in older building materials, which must be removed or encapsulated. This is an expensive process. Finally, if your home is a historic building, there are additional costs associated with preserving or recreating its original appearance.
Changing Wall Structure
If you choose to move or remove walls in your home, you may need to hire a structural engineer to ensure that these changes are structurally sound. A consultation costs between $300 and $700. Removing load-bearing walls is more expensive and complex than removing non-load-bearing walls, so plan for this in your budget. It can cost up to $10,000 to remove a load-bearing wall.
Plans and Permits
Most home renovations require drawings to detail structural, plumbing, electrical, roof, and HVAC changes. These plans are necessary to obtain a building permit as well as for the contractor to both bid on and build the changes. Plan drawings can be made by a designer or architect and often require a structural engineer to review and approve them. You can expect to pay $500 to $5000 or more for the plans.
If you’re undertaking a home renovation, you’ll probably need at least one building permit. All structural changes and additions require a permit, as do most plumbing and electrical work. Permits can run anywhere from $400–$1,800. Check with your city or county’s building department for more specific information.
Preparing for a Renovation
Large renovation jobs often require some preparation. You may need to remove landscaping features so trucks can access your home or put furniture in storage. Some renovations even require you to live somewhere else for some time.
You may also want to consult with an interior design professional to plan what the finished product will look like. Preparation for a whole-home renovation costs about $1,200–$4,000.
Repairs
It’s wise to budget for repairs even if your home appears to be in good shape. You can’t always know what repairs are necessary until contractors start digging into your walls, floors, or roof. Plan for budget overages in advance so you don’t have a nasty surprise in the middle of the process. Here are some major structural repairs and their average costs.
- Foundation repair projected cost: $2,000 to $7,500
- HVAC repair: $2,000 to $3,000
- Rewiring: $6 to $10 per square foot
- Roof repair Cost: $300 to $15,000
- Roof replacement Cost: $8,500 to $14,300
- Sewer line replacement cost: $3,000 to $6,000
- Water heater replacement cost: $850 to $3,500
What Are Signs That You Need to Renovate Your Home?
Sometimes, it’s obvious when you need to remodel. Here are some signs that it’s time.
- You want to increase your home’s resale value before selling.
- The number of people in your home has changed.
- Your home no longer suits your lifestyle.
- Your utility bills are high because of low energy efficiency.
- The layout is inconvenient or inefficient.
- You haven’t updated your home’s style in 10 years or more.
- Your appliances are outdated or frequently broken.
- You love your home’s location but want an aesthetic change.
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Professional vs. DIY Home Renovation
Some homeowners might be tempted to save money on labor costs by performing a home renovation themselves. While small projects may be within a seasoned DIYer’s (do-it-yourselfer) scope, most large renovation projects should be completed by professionals.
Professional Renovation
Any projects involving structural changes should be completed by a licensed contractor. A professional will know how to preserve the integrity of your home’s structure and meet all necessary local building codes. Additionally, you’ll need licensed tradespeople for many tasks such as electrical, plumbing, HVAC, drywall, paint, cabinetry, and flooring. These specialty trades require training and experience.
A professional can also complete the job faster and more effectively than if you tried to do it yourself. Professional contractors can often get better prices on materials by working with wholesalers. Careful adherence to code will ensure you preserve your home value, and most pros offer guarantees on their work, increasing your peace of mind.
DIY Renovation
If you have the time and the patience, you can complete some small renovation projects yourself. For example, you may be able to do some of the finishing, such as replacing faucets or repainting interior walls. You may also be able to install prefabricated kitchen cabinets, countertops, or light fixtures.
Still, it pays to leave the big changes to the pros. A recent NBC News survey found that 55% of DIYers were disappointed with the look of their finished project, and the same percentage found that the project took much longer than expected. Be honest with yourself about the limits of your time and abilities.
How Do You Hire a Professional?
You may need to hire many contractors for your remodel if you choose to manage it, but the steps to finding a trustworthy professional are the same no matter the trade. Using a general building contractor who’ll hire the necessary trades and verify their abilities, licenses, and insurance means you only have to hire one company.
- Make sure the contractor’s license is current and active if your state requires one.
- Make sure the contractor has both liability and workers’ compensation insurance.
- Check the contracting company’s page on the Better Business Bureau (BBB) website.
- Ask for references from previous customers and read reviews on sites such as Yelp and Trustpilot.
- Request estimates from at least three contractors or companies. Make sure to have professionally drawn plans and a project scope so that they’re all bidding on the same work. Be wary of bids that are far higher or lower than others.
How To Save Money on Your Home Renovation?
Even if you hire professionals for the bulk of your project, you can save money without cutting corners on important costs.
- Create a budget before you start and build in room for overages. Plan for at least 10% in unforeseen overruns.
- Stick with the existing floor plan. Making structural or layout changes is expensive.
- Use synthetic materials such as vinyl and laminate. These can mimic the look of more expensive materials such as wood or stone but cost less.
- Choose prefabricated building materials over customized units whenever possible.
- Talk to your contractors to see if you can do your own demolition at the beginning and clean up at the end.
- Look into refinishing your existing hardwood floors instead of installing new flooring.
- Take on DIY finishing tasks such as installing window coverings or ceiling fans.
Our Conclusion
Home renovation can be as big or small of a project as your budget allows. Some cosmetic projects are DIY-friendly, but you’ll want to hire professionals to design and implement any jobs that change your home’s structure or floor plan. Additionally, plan your budget carefully and stick to it as much as possible. Every remodeling project comes with surprises, so having patience and extra room in the budget will make it a more pleasant experience.
FAQs About Home Renovation
What is a good budget for home renovation?
A good budget for your renovation project depends on which room or rooms you’re remodeling and how extensive the project is. Determine what projects are most important and look at cost estimates. Remember to include at least 10% extra for overages and unforeseen problems.
Is it cheaper to buy a new house or renovate?
It’s almost always cheaper to renovate your current home. Home prices vary by location, but anything less than an extremely high-end remodel will be cheaper than buying or building a new home.
How do you calculate renovation costs?
It’s best to calculate renovation costs based on the rooms you want to remodel rather than square footage. For example, a kitchen renovation can cost twice as much as remodeling a bedroom or living room.
What are the benefits of renovating?
Here are some benefits of renovating your home:
- A space that better fits your specific needs
- A return on investment when you sell your house
- Greater energy efficiency and reduced utility costs
- Better comfort and convenience
What are the most expensive items to renovate?
Here are some of the most expensive rooms and areas to renovate:
- Room additions
- Kitchen
- Bathroom
- New roof
- HVAC system
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