How Much Does It Cost To Renovate A House In 2023?

Home renovation projects and spending hit a 4-year high in 2021, with over half (55%) of homeowners taking on renovations. Not only this, but the intent to renovate for 2022 remains strong, with households planning to spend a median of $15,000 nationally, up from $10,000 in 2018.¹ With renovation spending increasing, it begs the question: Just how much does it cost to renovate a house?

A recent survey by Houzz Research can help us find the answer. As the largest survey in the home remodeling and renovation industry, the 2022 Houzz & Home study provides invaluable insight into how much home renovators can expect to spend in 2022 and even into 2023.

If you plan to renovate your home in the near future, keep reading to learn more about what you can expect to spend, including: 

• The Average Cost To Renovate A House
• Renovation Costs Per Square Foot
• Median Spends By Renovation Project
• Additional Costs To Consider
• Budget-Saving Renovation Tips
• Home Renovation Benefits
• Additional Home Renovation FAQs

Average Cost To Renovate A House

The average cost to renovate a house will vary depending on home size, location and project undertakings. According to the most recent data, the overall median spend on home renovations is about $18,000.¹ However, home renovations in the 90th percentile can reach up to $175,000 on average.

Recent home buyers tend to spend the most on home renovations – the national median spend for this group is $30,000. This is compared to long-term and short-term homeowners, who spend a median of $15,000 and $19,000, respectively.

Renovation Costs Per Square Foot

If renovation costs vary so much by size, then how much does it cost to renovate a house per square foot? You can expect to spend anywhere from $10 - $60 per square foot depending on the project.² This price can go up even higher with costly renovations, like replacing a foundation or roof. 

Median Costs Of Home Renovations By Project

To get an even more accurate estimation of how much renovations may cost you, it’s best to look at costs by project. From interior to exterior projects, these renovation estimates can help you plan your budget.

Kitchen

Kitchens are the most popular interior space to be renovated, with 27% of home renovators choosing to upgrade. They are also usually the longest renovation project – taking just under 9 months from planning to completion on average. The median spend to renovate a kitchen is $15,000, but major remodels can cost between $25,000 and $45,000 depending on kitchen size.¹

Bathroom

After kitchens, bathrooms are the next most popular home renovation. About 22% of home renovators upgrade primary bathrooms and 24% upgrade guest or other bathrooms. The median spend to renovate a primary bathroom is $9,000, while guest and other bathrooms have a median cost of $4,400. Major remodels can cost between $10,000 and $20,000 depending on bathroom size.¹

Living Room 

Living rooms follow bathrooms as the next most popular renovation, with about 20% of home renovators choosing to upgrade. Living rooms take just over 7 months to complete from planning to final build and typically cost about $4,000.¹

Bedroom

Bedrooms are the fourth most popular remodel after kitchens, bathrooms and living rooms. The median spend for primary bedrooms is $2,000, and the median spend for guest or other bedrooms is $1,275. Bedrooms typically take just under 7 months to complete from planning to the final build.¹

Garage

Remodeling a garage usually costs between $7,000 and $15,000.³ This cost can drop to as low as $3,000 for a remodel on the low end or as high as $40,000 for a remodel on the high end. Garage renovations typically take about 6 ½ months to complete from planning to the final build.¹  

Home Office

With more people working from home, home offices are becoming increasingly popular. About 12% of home renovators spent on home offices in 2021, up 9% from 2020. Home offices typically take just over 6 months from planning to completion and typically cost about $1,200.¹

Home Exterior

In 2021, about 58% of home renovators tackled exterior projects. This includes everything from roof replacements to a fresh coat of paint and more. Depending on what project you undertake, exterior renovations can be as affordable as $1,200 or as costly as $10,000 or more.¹

Here are some of the most common home exterior renovations and their median price. 

Entryway

Entryways are one of the more expensive renovation projects, costing around $9,000 on average. Low-end renovations can drop this price to as low as $2,082 while high-end renovations can take the price up to about $10,044. The average ROI for an entryway renovation is about 61% – 65%.⁴

Additional Costs To Consider

When creating a renovation budget, don’t forget to factor in other costs like labor or permits. Here are some of the most common additional costs to consider when renovating your home. 

Labor

Labor is an essential part of any home renovation, with nearly 9 in 10 home renovators hiring professional help.¹

• 49% of home renovators hire specialty service providers such as electricians or plumbers.
• 38% of home renovators hire construction professionals such as general contractors or bathroom/kitchen remodelers.
• 20% of home renovators hire design professionals such as architects, interior designers or lighting designers.

The cost for labor will vary depending on the professional, but you can expect to spend anywhere between $20 and $150 per hour.²   

Some common rates for renovation labor include:

• Electricians: $50 – $100 hourly
• Plumbers: $45 – $200 hourly
• General contractors: 10% – 20% of the total project
• Kitchen remodelers: $65 – $250 hourly
• Painters: $20 – $50 hourly
• Architects: $125 – $250 hourly
• HVAC technicians: $50 – $150 hourly
• Landscapers: $50 – $150 hourly

Permits

The permits you’ll need will vary depending on your location and renovation projects. Some common projects that may require permits are:

• Fencing
• Window additions
• Plumbing
• Electrical
• Structural additions
• HVAC maintenance
• Demolitions

If you plan to do any of the above, check with your local governing authority to see if any permits are required.

Concerning costs, permits can vary between $50 and $1,800 depending on the project.² With such wide price variations, checking what permits you’ll need ahead of time is even more important.

Electrical

Whether you’re upgrading home entertainment systems or updating old wiring for safety, be sure to plan on electrical costs. Electrical upgrades are one of the most popular areas to spend, with about 24% of home renovators investing here. The median spend on electrical upgrades is about $1,500.¹ 

Plumbing 

With the popularity of kitchen and bathroom upgrades, it’s no wonder that plumbing is one of the most popular home system upgrades. About 27% of home renovators spend on plumbing, and the median spend for plumbing renovations is $1,000.¹  

Home Additions

Home additions can vary anywhere between $5,000 and $150,000 depending on what’s involved in the project. Demolitions, construction, electrical, plumbing and expensive finishing materials can all cause the price of home additions to go up. However, the average home addition project costs about $49,600.²

Cooling And Heating

A home without cooling and heating can become uncomfortable very quickly. It’s no surprise about 1 in 5 home renovators spend on installing or updating these important systems. The median spend for cooling is about $5,000, and the median spend for heating is about $4,300. While expensive, these systems can be worth the splurge.¹ 

5 Ways To Save Money When Renovating Your Home

Depending on the project, home renovations can quickly become expensive. What’s more, home renovators typically take on two to three projects at a time, making renovations even more expensive. Combined with external factors like extended timelines or material shortages, it’s easy to see how an average of 34% of renovations go over budget.¹

That’s why it’s so important to financially plan ahead when renovating. By using the following methods, you’ll hopefully be able to save some money, stay closer to your target renovation budget and reduce stress.  

1. Compare quotes: Not every professional charges the same rates. While it may seem like a hassle, shopping quotes from general contractors, electricians and other specialized professionals can cut down your costs by thousands of dollars.

2. Lock in a maximum budget: While shopping quotes, ask professionals what their policies are on maximum budgets. Extended timelines or material shortages can push expected budgets over the top. Some professionals will allow consumers to write a maximum budget into their contracts to prevent large unforeseen costs.

3. Do demo work yourself: Plenty of demolition projects can be done yourself. Whether you’re tearing down an old deck or gutting cabinetry from the kitchen, doing demolition work yourself can save hundreds to thousands of dollars in labor costs.

4. Don’t move the sink or toilet: Redoing plumbing systems can be costly. If your home’s plumbing can reasonably be left as is, this is a great way to cut down on renovation costs. For this reason, plan to leave sinks or toilets where they are if possible. 

5. Choose donation over disposal: Funny as it may seem, disposing of unneeded materials can be a major cost in renovation projects. For example, removing dirt after a landscaping project can cost between $235 and $600 with a disposal service.⁵ Some materials can be donated to organizations like Habitat for Humanity instead.

Benefits Of Home Renovations

With the costs of home renovations, a common question arises: Is it really worth it? That largely depends on your reasons for renovating as well as your budget. Some renovations are necessary for accessibility issues or fixing damage from natural disasters. Sometimes renovation projects are purely for aesthetics.

Whatever the reason, here are a few common benefits of home renovations. 

• Increase selling price: While not guaranteed, some renovations can increase a home’s property value. The projects that tend to offer the highest ROI are deck additions or replacements, window replacements and kitchen or bathroom upgrades.⁶
• Modernize your living space: Some homes are simply outdated and may be aesthetically unappealing. Renovations can modernize living spaces for the simple benefit of increasing a homeowner’s satisfaction with the space.
• Address safety issues: While some older homes are simply aesthetically unappealing, some may actually present safety concerns. Wiring that’s not up to code or structural integrity problems necessitate renovation.
• Increase home efficiency: Some renovations can boost how efficiently your home uses energy. Adding new windows or simply sealing existing windows can prevent drafts that make heating and cooling your home more expensive. This project may even save homeowners 10% – 20% on heating and cooling bills.⁷

Home Renovation FAQs

Have more questions on home renovations? Here are the answers to some of the most commonly asked renovation questions.

How Much Does It Cost To Completely Renovate A House? 

On average, complete home renovations can run anywhere from $15,000 – $200,000.⁴ This figure varies widely depending on home size, what renovations are needed and what kinds of finishing materials are used. Home renovations that require new roofing, for example, will run much higher than those that don’t.

When planning a renovation budget, it’s a good idea to hire an inspector, architect or general contractor who can give you an idea of what renovation projects may be required (or desirable). Price out these projects before beginning any work when estimating home renovation costs.

Is It Cheaper To Buy Or Remodel A House?

Wondering if you should remodel or move? Remodeling is generally less expensive than buying a new home. The national median spend on home renovations is only about $18,000.¹ This low number is possible because most remodels don’t require redoing the whole home. Even completely remodeling a home typically costs between $15,000 and $200,000.⁴ Contrast this with the national median price of buying a new home: $408,100 in Q4 2021.⁸   

If you plan to renovate your home, it’s important to start financial planning sooner rather than later. This can prevent last-minute credit card use, which can come with high interest rates. Some financial options may include VA renovation loans or a cash-out refinance.

Sources

1. Houzz Research

2. HomeAdvisor

3. Fixr

4. Rocket Mortgage

5. Budget Dumpster

6. Investopedia

7. Energy Saver

8. Credit Karma