Home improvement is a popular category that has had less pressure due to the housing crisis and in reality, this is a category that has always had a steady demand. As the housing market gains momentum and interest rates remain at historically low levels home improvement will once again be back on the radar. We are not in as strong of a recovery at the moment, but we can see plenty of opportunities for improvement that are coming.

Depending on where you live, how big and old the home is, and what projects you will be taking on, renovating your home can be more affordable than buying one. A survey  of renovations in the top 50 major U.S. cities found that the average renovation cost was $15,000.

What is the average cost to renovate a house?

On average, Americans spend $15,000 for one home renovation project. Due to financial strain, homeowners spent 48% less to renovate their homes because of the COVID-19 effect. To keep renovation costs down, people reported being more careful with their renovation spending and turning to DIY projects that are more affordable.

The average remodeling project cost will vary depending on the house type and the project. According to the National Association of Home Builders (NAH, a certain percentage of the total home value should be spent on room upgrades or other improvements.

Suggested Spend By Project
Project Type	Suggested Spend (based on home value)
Kitchen	16%
Attic or basement	10 – 15%
Primary bedroom	13%
Living area	10%
Primary bathroom	7%
Small bathroom	5%
Siding	3 – 5%
Windows	3 – 4%
Patio or backyard	2 – 5%
Roof	2 – 4%
Standard Bedroom	1 – 3%

Source: National Association of Home Builders

Remodeling a House Based on Size

The size of the space is the most important factor in determining the price of your renovation. The price can be anywhere from $10-$60 per square foot. However, this estimate can go up to $150 per sq foot if you use high-end materials or top-of-the-line appliances.

House Renovation by Room  

There are two types of rooms you can use to divide your house: dry and wet. Wet rooms are those rooms that have water running to them. These include bathrooms, kitchens, and utility rooms. These rooms will consume more of your renovation budget than dry rooms.

Dry rooms are bedrooms and living spaces that require only painting and flooring. A fireplace is an exception. The cost of a new fireplace installation is between $900 to $3,70. Here are the most popular room types that help you to determine your budget.

Space or Room	Average Price Range
Bathroom	$3,000 - $25,000
Accessory dwelling unit	$3,000 - $30,000
Office or workspace	$5,000+
Living area or family area	$5,000 - $10,000
Kitchen	$6,000+
Utility room	$6,000+
Bedroom or primary suite	$10,000 - $15,000
Guesthouse	$15,000 - $30,000

        

Bathroom  

 

There are many prices for bathroom remodeling projects, depending on what type of counters, cabinets,  and fixtures you choose. You can expect a higher price tag if the footprint is changed. This can require permits an architect, and moving supply lines or drain lines. You can reduce your budget by half if you don't need to move any of the drain or supply lines.  

Here is a breakdown of the costs for different elements in your bathroom:    

Bathroom Features	Low To Mid-Range Price Range	High Price Range
Bathtub	$400 - $4,100	$6,000 - $8,000
Cabinets	$1,200 - $7,000	$8,000 - $13,000
Countertops	$900 - $4,100	$5,000 - $6,500
Flooring	$800 - $3,600	$5,000 - $7,000
Lighting fixtures	$120 - $1,700	$2,500 - $4,000
Shower	$450 - $4,800	$6,000 - $10,000
Sink	$190 - $2,300	$3,500 - $6,500
Toilet	$130 - $500	$550 - $800
Total	$4,190 - $28,100	$36,550 - $55,800

Kitchen

Kitchen remodeling costs from $55,000 to $65,000 and more. These are just a few examples of kitchen remodeling projects that are common.

Small: $5,000-$30,000. Adding lighting, trim, and paint; budget-friendly backsplashes; removing non-load-bearing walls

Mid-range: $30,000-$65,000. Adding tile backsplash; adding moderately-priced cabinets and counters; upgrading appliances and floors    

High-end: $65,000+ Adding custom cabinets, stone or granite countertops; installing high-end appliances and overhead lighting; hardwood flooring; and a new sink with faucet

Three major factors impact the cost of remodeling or renovating a kitchen: countertops, flooring, and cabinets.

Cabinet costs per linear foot:

• Stock: $100-$300
• Semi-custom: $150-$650
• Custom: $500-$1,200
• Refinished: $1,400-$3,500 (total)

Countertop costs by material:    

• Stone: $4,000-$7,000
• Laminate: $1,200-$2,000
• Solid surface: $1,500-$3,000
• Concrete: $2,600-$5,300

Flooring prices:

• Vinyl: $800-$2,650
• Stone: $900-$2,800
• Laminate: $1,500-$4,250
• Wood: $2,500-$6,750

Bedroom

Bedroom renovations are budget-friendly as they cost between $1500 and $5,500. Although they only require flooring and paint, structural changes like add-ons might require permits and an architect. If you are looking to convert an attic or basement into a bedroom, these projects can be more difficult and costly. These larger projects can cost up to $40,000.

Living Room

The cost of remodeling a living room ranges from $10-$60 per square foot. While a simple DIY project will probably cost less, a custom-designed remodel will likely cost you $60 per sq. foot.

Remodeling a living room is an extremely complex project. Some people simply want to paint the room and add some window treatments or storage units, while others are more ambitious. It is possible to quickly add new electrical outlets and light fixtures or install new windows. Laying new flooring can also be a costly project. Here are some remodeling jobs and the associated costs that you can budget for:    

Remodeling Project	Average Costs (includes Labor)	Average Cost (includes Labor)
Refinishing walls	$1.75 - $60 per square foot	$31 per square foot
Storage	$20 - $15,000	$7,510
Lighting changes or additions	$25 - $2,000	$1,010
Window treatments	$50 - $1,000	$525
New furniture	$100 - $5,000	$2,550
New electronics	$200 - $5,000	$2,600
Refinishing the ceiling	$250 - $12,000	$6,125
Windows installation	$330 - $3,600	$1,965
Refinishing, replacing, or adding doors	$450 - $4,000	$2,225
New flooring installation	$500 - $14,750	$7,625

                

Basement        

Basement remodeling costs $12.300 to $33,300 with some projects exceeding $40,000. This project will cost you between $100 to $300 per square foot.    

A basement remodel may be difficult depending on the house plan and the conditions of the area. Remodeling costs include flooring, wall construction, electrical and plumbing upgrades, and furnishing the room. The most costly remodeling option would be to add a bathroom in the basement. This would involve hiring a plumber and adding plumbing lines.        

Attic    

The average cost of finishing an attic bedroom would be $40,000. You can pay $12,000 or more than $70,000. You can make the most of your attic space by converting it. Renovating vertically instead of adding new square footage horizontally can help you transform your existing space into a suitable living space. Cost differences will depend on how big the space is and if it's a complete renovation of an attic with no living space. Including a bedroom suite with a bathroom will increase your overall cost.    

Garage   

Renovation costs vary depending on the project's complexity. They range from $3,000 up to $30,000. A full remodel of a two-car garage will cost homeowners around $11,000.    

Exterior    

These upgrades cost $5,000 to $15,000 on an average budget. These are the top exterior remodeling projects and their average costs:    

•      Home exterior painting price: $1,800-$4,400      
•      Landscape installation cost: $1,400-$5,700      
•      Exterior door price: $1,150      
•      Window installation costs: $6,250      
•      Deck railing price: $450-$8,800      

House Entryway    

Your entrance is more than your front door. The first impression is made by your walkways, landscaping, and lighting. These elements can have a big impact on your budget without spending a lot. A small entryway will cost you $1,030 to $1,250. A medium one will cost you $2,570 to $3,120. A large foyer remodel can cost $8,880 to $10,780.    

       

Other home renovation cost factors

It is important to talk about all possible extras when getting estimates from potential contractors.

• Labor
• Permits
• Home additions
• Modifying a floor plan
• Electrical, plumbing, and HVAC
• Modernizing appliances

Labor

House renovation labor costs can range from $20 to $150 an hour.

• General contractor fees: 10%-20% of the total project
• Architect Fees: $125 - $250 per hour
• Interior designer fees: $50-$200 per hour
• Kitchen designer rates: $65-$250 per hour
• Painter Rates: 20-$50 an Hour
• Plumber Rates $45-$200 an hour
• Electrician Rates: $50 - $100 per hour
• HVAC technician charges: 50-$150 an hour
• Landscape designer charges: 50-$150 an hour

Permits

A permit  for small projects such as a kitchen or bathroom could cost $50 to $300 while building permits are available for $400 up to $1,800. To determine the permits required for your house remodel, you need to consult with local authorities. To ensure that everything follows building codes, most authorities will require one. A permit is often required for:

New constructions

• Additions  
• Major renovations
• Structural Changes
• All aspects of electrical, mechanical, or plumbing work

Home additions

A home addition will cost between $22,500 and $80,100. However, it can be as low as $5,000 or as high as $150,000. On average, homeowners will spend $49,000. It all depends on how extensive the addition is and what finish materials are chosen. Plumbing can be more costly than a sunroom or primary bedroom because it requires different materials and components.

Modifying a Floor Plan

A local structural engineer is recommended if your plans for house renovations include adding stairs, changing staircases, or tearing down load-bearing walls. A structural engineer costs from $350 to $750. They can help you make sure your plans are completed safely and securely.

Electrical, Plumbing, and HVAC

There are many choices when it comes to heating, ventilation, or air conditioning units. HVAC units cost $500 to $7,200 and more. Below are just some of the common tasks and average costs associated with your home climate control options:

• Central air installation costs: $3,800-$7,600
• Furnace installation costs: $2,800-$6,800
• Heat pump installation costs: $4,200-$7,500
• Insulation installation costs: $1,400-$6,300
• Replacing ducts and vents costs: 500-$2,100
• Solar panel installation costs: $18,000-$34,500

Update Appliances

Appliances can be purchased for $200 up to $10,000 or more. There are many things to think about when it comes to appliances. Although prices can skyrocket, it can be detrimental to limit your choices to basic appliances. If you are passionate about cooking, spending more on a six-burner stove will increase your enjoyment of the kitchen and improve its functionality.

Below is a list of estimated prices for each appliance category.

• Basic/discount $100-$2,000 depending upon the number of features
• High-end store-bought: $300-$5,000
• Energy Star: $200-$3,500
• Custom built-ins: $1,000-$10,000

Home Renovation Cost Estimator Spreadsheet

Your preferences will influence the cost of your home renovations. The home renovation cost calculator spreadsheet will allow you to easily adjust your budget so that your money goes towards the things that matter most.

Step 1 - Think about how you will finance your remodeling project. You can refinance a home with tax-free funds.

Step 2 - Copy the spreadsheet to each tab. Next, estimate the prep work such as inspections and design costs.

Step 3 - Once your prep work has been estimated, start sourcing vendors and getting estimates for your project, and adjust as necessary.

Step 4 - Once your estimated costs have been calculated, and work has begun, log the actual cost. Adjust your budget if necessary and log any outstanding balance.