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Home renovation cost

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How Much Does Home Renovation Cost? (2025 Pricing)

Expect to spend between $19,500 and $88,400 on your home renovation, depending on the scope of the project. Learn more about what factors impact renovation costs.

Typical cost range:
$19,500 – $88,400

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Written by
Alexis Carthan
Written by
Alexis Carthan
Updated 03/06/2025

Home renovations are exciting, but they can also feel like navigating a financial maze. Whether you’re dreaming of a new kitchen or a bathroom remodel that transforms your morning routine, understanding the true cost of these projects is crucial for budgeting.

Every home improvement project is a unique journey, and costs can vary dramatically based on scope, materials, and local market conditions. This guide breaks down the essential factors that influence renovation costs and helps you create a realistic budget, avoid costly surprises, and ultimately achieve a renovation that adds value to your home and joy to your living space.


Average Home Renovation Cost

A home renovation for most homeowners costs between $19,500 and $88,400. However, depending on many factors and the overall scope of your renovation, you can pay as little as $3,000 or as much as $190,000. For most 1,250–1,600 square foot homes, the average price is closer to $52,275 to complete a renovation.

Cost figures are based on 2025 pricing data from Angi.


What Factors Affect Home Renovation Costs?

Understand the key factors that influence your project’s cost to transform your vision into reality without financial stress. These factors help you navigate potential budget constraints and unexpected expenses.

Cost Per Square Foot

Understanding renovation costs by square footage provides a standardized lens for comparing project expenses. Home renovation costs around $15–$150 per square foot.*

House Size (sq ft)Low-End Total Cost ($15/sq ft)Mid-Range Total Cost ($60/sq ft)High-End Total Cost ($150/sq ft)
1,200$18,000$72,000$180,000
1,500$22,500$90,000$225,000
2,000$30,000$120,000$300,000
2,500$37,500$150,000$375,000
3,000$45,000$180,000$450,000
3,500$52,500$210,000$525,000
4,000$60,000$240,000$600,000

At the low end of $15 per square foot, you can complete basic updates such as painting and replacing appliances. The mid-range of $60 per square foot represents a more comprehensive renovation with moderate-quality materials. The high end of $150 per square foot includes a premium renovation with top-tier materials, higher-end finishes, and potential structural modifications for the whole house.

Remember, these are average estimates. Your project costs may vary based on unique home characteristics, local market conditions, and your vision for your renovation.

*Cost figures according to Angi and NerdWallet.

Cost by Project Scope

The scope of your renovation project is the primary factor in your renovation budget. Simple cosmetic updates, such as repainting or replacing fixtures like faucets, have dramatically different financial implications than full-scale structural modifications or whole-home transformations like replacing drywall.

Here are some examples of varying project costs:

  • A bathroom remodel might range from $6,600 to $28,000.
  • A kitchen remodel could span $14,550–$40,400.
  • Replacing appliances could range from $200 to $10,000 per appliance.

Cost figures are based on 2025 pricing data from Angi.

Wayne Goff, program director and lecturer at the University of North Carolina at Charlotte, says, “Some of the biggest contributing factors that impact renovation cost is the scope of the project, which would include size, level of difficulty, and level of finishes. Obviously, most of the time, the larger the project involved, the more expensive it becomes; however, even small projects that will be performed under difficult conditions or circumstances can increase project costs.” Project complexity impacts costs through multiple channels:

  • Complexity of design and material specifications
  • Higher labor costs for specialized labor and expertise
  • Structural changes requiring architectural plans
  • The potential need for permit acquisitions

Cost by Material

Materials are the silent budget shapers of any renovation project. The difference between budget-friendly and premium materials can represent thousands of dollars in project costs, significantly influencing your overall investment.

Here are some common home improvements and an example of how materials influence the cost:

  • Countertops: Laminate comes in cheaper than fine quartz.
  • Fixtures: Basic models versus designer collections can mean hundreds to thousands in price savings.
  • Flooring: Vinyl will cost less than high-end hardwood flooring.

What Are Additional Home Renovation Costs?

Some project-related expenses aren’t directly tied to construction but can significantly impact your overall financial investment:

  • Debris removal and cleanup: Dumpster rentals, hauling and disposal fees, and potential landscaping restoration add to renovation costs. You might also hire clean-up labor and additional material disposal.
  • Design and architectural services: These include professional design consultations and architectural drawings and plans. These services can save you money in the long run by preventing costly design mistakes.
  • Insurance and liability: There are potential increases in homeowner’s insurance, additional liability coverage during renovation, and the need for specialized contractor insurance.
  • Permits and inspection fees: Municipal requirements and building permits can range from $500 to $2,500, according to Angi, and they vary by location and project complexity. Your project can include multiple inspections throughout the renovation process.
  • Temporary housing costs: These are potentially necessary during extensive renovations. They include hotel or short-term rental expenses, as well as meal costs and potential storage expenses.
Ask An Expert

What Are Some Common Obstacles That Arise During Home Renovations, and How Can They Be Avoided?

“Delays, budget overruns, and miscommunication are frequent issues. Setting realistic expectations, clarifying responsibilities, and anticipating structural or permitting challenges help avoid setbacks. Thorough research and planning are key.”
“The most common obstacles I believe would be ‘unforeseen conditions.’ These could be truly unforeseen as they were hidden by existing structures or inaccessible areas or created as in violating building codes, zoning requirements, or HOA restrictions. For items that are hidden or inaccessible, you can only go so far with limited demolition or test pits without causing harm to your property, but you must investigate as much as you can to eliminate the surprises.”
“Common obstacles during home renovations include insufficient budgeting for known and unknown expenses and a lack of alternative backup plans. Pre-planning involves informing clients who wish to be on-site during the renovation about how it will affect their daily routines, including limited access to the kitchen or bathroom, the inconvenience of relocating to an alternate area—such as the basement laundry sink or powder room—and the importance of managing construction dust with appropriate filters and barriers to safeguard one’s health.”

How Do You Plan a Home Renovation?

Every renovation starts with honest self-reflection and comprehensive research. Understanding your true motivations, financial capacity, and home’s potential determines whether your project becomes a dream realized or a financial strain. Think of this planning phase as your renovation blueprint. It’s a critical foundation that determines the success of your entire project.

Here are some of the most important considerations to plan around:

  • Current home condition: Assess your existing infrastructure’s condition. Necessary repairs or outdated systems may take priority over aesthetic improvements. Sometimes, addressing fundamental structural or mechanical issues provides more long-term value than cosmetic updates.
  • Financing: Evaluate your financial resources realistically. Whether you use savings, home equity loans, or financing options, understand the full financial implications. Calculate not just the average cost but also the potential interest, the long-term financial impact, and your comfort with the investment.
  • Home value: Evaluate how your renovation will influence your property’s market value. Not all improvements offer equal returns on investment. Kitchen and bathroom remodels typically yield higher returns than more personalized upgrades.
  • Lifestyle needs: Prioritize renovations that enhance your daily living experience. A beautiful space that doesn’t functionally serve your family’s needs becomes an expensive mistake. Consider how each renovation improves your home’s livability and meets your family’s evolving requirements.
  • Personal goals: Consider your future plans. Are you renovating to sell or creating a forever home? Your timeline dramatically influences the scope of your renovation, budget allocation, and design choices. A home you plan to sell in two years requires different strategic considerations than a space you’ll live in for decades.

Remember, successful home renovations are marathons, not sprints. Take time to research, gather multiple contractor quotes, and create a comprehensive plan that balances your dreams with financial capacities.


What Are Ways To Save on Home Renovation Costs?

Home renovations are a strategic investment, and like any savvy investor, the smartest homeowners know how to maximize every dollar. Here are some ways to save:

  • Federal tax credits: Energy-efficient home improvements can unlock significant tax credits. The Inflation Reduction Act offers homeowners up to $3,200 annually for qualifying energy-efficient upgrades. Solar panels, energy-efficient windows, heat pumps, and insulation improvements can qualify, potentially offsetting a substantial portion of your renovation costs.
  • Material cost optimization: Strategic material selection can dramatically reduce costs without sacrificing quality. Use remnant or overstock materials for smaller projects, and consider refurbished or slightly imperfect high-end materials. Mix high-end statement pieces with more budget-friendly options. Purchase materials during sales or clearance events.
  • Multiple quotes: Never settle for the first estimate. Obtaining three to five detailed quotes from reputable contractors can reveal price disparities and negotiation opportunities. A comprehensive quote should break down material costs, labor, timeline, and potential additional expenses. Pro tip: The lowest bid isn’t always the best—look for value, expertise, and comprehensive service.
  • State and local rebates: Many states and local utilities offer additional rebates for green home improvements. These cover specific upgrades like energy-efficient appliances, water heaters, and HVAC systems. Always check with local energy offices and utility providers for current incentive programs.
  • Timing: Renovation costs fluctuate with contractor availability and material prices. Winter and early spring often see lower labor rates as contractors seek work during slower seasons. Planning your renovation during off-peak times can result in cost savings on labor and potentially faster project completion.
Ask An Expert

What Advice Would You Give Homeowners for Creating a Home Renovation Budget?

“Homeowners should account for hidden costs, collect multiple bids, and differentiate between construction and consultant fees. A common mistake is underestimating both expenses and timelines—unexpected issues often arise during demolition, and permitting through building and zoning departments can cause delays. Setting a realistic budget and schedule with built-in contingencies helps avoid frustration.”
“Common obstacles during home renovations include insufficient budgeting for known and unknown expenses and a lack of alternative backup plans. Furthermore, setting aside a budget for unforeseen issues, such as hidden structural barriers or problems related to water or pest damage, can assist with what the industry calls CYA (Cover Your Assets).”

Renovation vs. Remodel

Although “renovation” and “remodeling” are frequently used interchangeably, these terms represent fundamentally different approaches to transforming your living space. Each has unique implications for your budget, design, and home’s overall value.

Renovation is essentially a restoration process. Think of it as giving your home a sophisticated refresh. You update and improve existing structures while maintaining the original design and fundamental layout. It’s like a makeover that breathes new life into a space without dramatically altering its core purpose. For example, a kitchen renovation involves surface-level improvements such as repainting, replacing fixtures, updating appliances, or refinishing surfaces. The financial investment is generally lower, and the project complexity remains relatively manageable.

Remodeling, by contrast, represents a more radical transformation. This approach completely reimagines and restructures spaces by potentially moving walls, changing floor plans, or fundamentally altering a room’s function and purpose. For example, a kitchen remodel might involve removing walls to create an open concept, completely redesigning the workflow, relocating plumbing and electrical systems, and creating an entirely new functional space. Remodeling costs more, is more complex, and often requires architectural plans, multiple professional trades, and extensive permitting.

The choice between renovation and remodeling isn’t just financial. Renovation makes sense when your existing space is fundamentally sound, you’re working with a more constrained budget, and your goal is to refresh rather than redesign. Remodeling is the right choice when your current layout no longer meets your functional needs, you’re prepared for a more substantial investment, and you want to increase your home’s value and livability dramatically.

Ultimately, both approaches offer potential value appreciation, but the return on investment varies. Minor kitchen and bathroom renovations often yield higher percentage returns compared to extensive remodeling projects. The key is to align your home improvement strategy with your long-term goals, budget, and lifestyle needs. Consulting multiple professionals, getting detailed estimates, and thoroughly researching your options will help ensure that your home transformation journey is both financially sound and personally satisfying.


DIY vs. Professional Home Renovation Cost

Home renovation is a delicate balance between personal ambition and practical expertise. While the allure of saving money through do-it-yourself (DIY) projects is strong, the potential for costly mistakes is just as great. Understanding when to grab your toolbox and when to call in professionals will help you avoid serious issues.

Julia Klineberg, project designer at Studio Mayd and professor of architecture at George Washington University, explains the trade-offs between hiring professionals and DIY approaches: “A contractor brings experience, knowledge of regulations, and cost-saving trade relationships, but hiring one can be costly and requires careful vetting. DIY renovations offer more control over materials and costs but demand time, expertise, and management of multiple trades.”

Some projects are perfect DIY candidates, offering significant cost savings and personal satisfaction. If you have a free weekend and some basic skills, you might confidently tackle interior painting, simple tiling, or installing new light fixtures. These projects typically save you at least 50% compared to professional services, with material costs often remaining below $1,000.

However, certain home improvement projects are no-go zones for DIY enthusiasts. Electrical work, complex plumbing modifications, structural changes, and advanced heating, ventilation, and air conditioning (HVAC) installations require professional expertise. These projects involve critical safety considerations, potential code violations, and risks that far outweigh any potential cost savings. A botched electrical installation could create fire hazards, while improper plumbing work might lead to catastrophic water damage, costing tens of thousands of dollars.

Professional contractors bring not just skills but also other important elements:

  • Advanced diagnostic capabilities
  • Comprehensive understanding of local building codes
  • Liability insurance
  • Necessary permits and inspection processes
  • Specialized tools and equipment
  • Warranty protection for their work

Jacqueline Carmichael, associate professor and interior design program coordinator at Howard University, emphasizes the value of professional expertise: “Hiring a professional saves time and money in the long run. Their expertise ensures accuracy, code adherence, and proper construction, saving costs and time. If a DIY client is skilled, I suggest they pursue their project and put their skills into action; however, the notion of ‘time’ remains an asset that one will come to value and cannot regain.”

Goff echoes the same sentiment. He explains that the benefits of using a licensed professional include “competence in building and renovations from experience, code interpretation, planning, scheduling, and overall coordination of the work while managing the brunt of the frustration and headaches for their client. However, he also notes the potential drawbacks: “The disadvantages are that not all contractors are created equal with respect to the assumed advantages, and the additional costs borne by the homeowner may in fact provide none of the stated benefits, only more cost.”

The smartest homeowners adopt a hybrid approach. They tackle simple preparatory or finishing work themselves, such as demolition, painting, or basic cleanup. They leave technical, complex, or high-risk tasks to professionals. This strategy can reduce overall project costs while ensuring safety and quality.

Ask An Expert

How Should Homeowners Select a Contractor?

“Homeowners should carefully select their contractor by checking their references, visiting previous projects and confirming they are in good standing with the licensing board in their respective state.”
“Clients must research and vet credentialed professionals who uphold industry standards or risk losing their licenses. They should also read reviews to understand how projects were managed and how challenges were addressed. Obtaining at least three references to confirm the company’s past performance can be beneficial.”

Is Home Renovation Worth It?

Home renovation costs can be worth it when strategically approached by focusing on improvements that balance financial return with personal satisfaction. Kitchen and bathroom remodels typically recoup a lot of their costs, while energy-efficient upgrades and exterior improvements like siding easily return the investment. The most valuable renovations enhance both property value and daily living experience by modernizing spaces, improving functionality, and addressing outdated home systems.

However, renovation isn’t always financially prudent. Carefully evaluate your specific circumstances, considering factors like current market conditions, neighborhood property values, and long-term housing plans. Renovations make the most sense when they solve functional problems, reflect lifestyle needs, and don’t overinvest beyond the home’s potential market value. Consulting real estate professionals, appraisers, and financial advisors can help you make sure that your renovation decisions align with both your desires and financial realities.


FAQs About Home Renovation Cost

What are the biggest hidden costs in home renovations?

Unexpected structural issues, outdated electrical or plumbing systems, and permit fees are common hidden costs. Changes to the original plan, material price fluctuations, and living expenses if you need temporary housing can add to the overall cost.

Is it more cost-effective to renovate a home in phases or all at once?

Renovating all at once can be more cost-effective because it reduces labor and material costs due to bulk pricing and avoids repeated disruptions. However, phasing the renovation allows for better budgeting and flexibility, especially if funds are limited or if you want to live in the home during the process.

How do financing options impact the overall cost of a home renovation?

Paying in cash avoids interest but can strain savings. Home equity loans or lines of credit offer lower interest rates, while personal loans have higher costs. Due to high interest rates, financing through credit cards can be expensive, so it’s best for smaller projects or short-term expenses.

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