Home Renovation Costs in 2022 + Estimation Template
Andrew Dehan10-minute read
March 29, 2023
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Thinking of replacing those old kitchen cabinets? Maybe you're planning to add a third bathroom or replace your home's carpeting with hardwood flooring. You might be dreaming of a finished basement with a bar and home theater. If you're mulling over a home remodeling project, you're not alone.
Depending on factors like where you live, the size and age of your home and what projects you’re taking on, renovations can be cheaper than buying a home. According to a survey of renovations in the top 50 U.S. metro cities by Houzz1, people spend $15,000 on average per renovation project.
Using this post, find the average home renovation costs in 2021, then estimate the cost of your project with the home renovation cost estimator template.
Table Of Contents
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How Much Does It Cost To Renovate A House?
On average, Americans spend $15,000 on a single home renovation project1. Following the effects of COVID-19, homeowners spent 48% less on their renovation costs than prior to the pandemic2, likely due to financial strain. People reported being more cautious with their renovation spend by turning to do-it-yourself projects and more budget-friendly finishes to keep overall renovation costs down.
Depending on the type of house and project, the average recommended spending for remodeling projects will vary. The National Association of Home Builders (NAHB) suggests spending a certain percentage of the home’s total value based on the room or upgrade, detailed in the chart below.
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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 Builders3 |
|
Based on the suggested spend per project, what do the average home renovation costs look like nationally?
Cost To Completely Renovate A House
The average cost to completely renovate a house is $15,000 – $200,0004. Depending on the characteristics of the build, the price can change drastically. The final price tag typically depends on any structural or mechanical repairs, square footage, underlying issues, location and materials used.
Depending on their characteristics, remodels will fall under one of three types of categories: high-end, mid-range and low-end.
- High-end: These are major renovations with designer materials and high-end products.
- Mid-range: Typically, these are renovations for projects typical in second homes with mid-range products and materials.
- Low-end: Remodels with minor upgrades typically found in starter homes are considered low-end, many of which are self-funded or DIY, and use low-end products.
Below you’ll find the national averages of high-, mid- and low-end costs for popular renovations. The calculations include the return on investment to the nearest percentage based on Remodeling’s 2021 Cost vs. Value Report5.
Gut Renovation
Depending on the square footage, the average cost to gut and remodel a house can be anywhere between $100,000 – $200,0004. Gut renovation cost per square foot ranges between $60 – $150 and includes new plumbing, appliances, structural improvements, a new roof and an HVAC (heating, venting, air conditioning system).
Interior Renovation
When it comes to renovating the inside of a home, you have to factor in the cost of demolishing the interior. This typically costs $1,200 – $4,700 with a high end of about $10,0004. The total price includes the removal of debris, dumping fees, permits and tear out. Once everything is cleared out, you have to factor in the costs depending on the specific project.
A popular interior renovation that homeowners tend to do is removing interior walls. This costs $300 – $10,000⁴, however, the price can range depending on whether a wall is load-bearing or not. Load-bearing walls serve as the primary support of the home, so removing them involves a great deal of guidance.
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How Much Does It Cost To Add A Room?
The estimated cost of adding a room ranges between $135,000 – $282,000. About 33 percent of people report renovating their primary bedroom to increase livability and overall function6. Once complete, over half of homeowners enjoy being home more and feel a major sense of accomplishment.
High-end average cost: $320,976
Additional home value: $152,996
Return on investment: 48%
Mid-range average cost: $156,741
Additional home value: $85,672
Return on investment: 59%
How Much Does It Cost To Renovate A Bathroom?
An airy and modern bathroom is considered a luxury by many homeowners. Buyers, just as with kitchens, often focus on bathrooms when deciding whether or not to make an offer on a house.
Remodeling a bathroom, on average, costs $20,000 – $38,000. Renovations in the primary bath are typically only done when budgets are at or exceed $4,5002. With budgets below this threshold, upgrades like floors, lights, counters and cabinets aren’t typically pursued, though paint is the embellishment people still splurge for.
High-end average cost: $75,692
Additional home value: $41,473
Return on investment: 55%
Universal average cost: $38,813
Additional home value: $22,475
Return on investment: 58%
Mid-range average cost: $24,424
Additional home value: $14,671
Return on investment: 60%
Cost To Renovate A Kitchen
Kitchens are traditionally one of the first rooms homeowners remodel and doing so costs $23,000 – $135,000. When buyers look at homes that are for sale, a modern kitchen is what often encourages them to make an offer. With budgets below $4,000, homeowners avoid making upgrades to countertops, cabinets and appliances in the kitchen2.
High-end average cost: $149,079
Additional home value: $80,284
Return on investment: 54%
Mid-range average cost: $75,571
Additional Home Value: $43,364
Return on Investment: 57%
Low-end average cost: $26,214
Additional home value: $18,927
Return on investment: 72%
Garage Remodeling Costs
A complete garage remodel will range $7,000 – $15,000, on average8. Small upgrades like a garage door replacement can add significant value to your home, nearly matching your investment at a 95% return.
Garage door replacement average cost: $3,907
Additional home value: $3,663
Return on investment: 94%
Exterior Remodel Cost
Exterior remodels can focus on the structural integrity or curb appeal of your home. For roof, siding and window replacements, you’ll spend an average of nearly $68,000. To add a patio or deck area, expect to pay another $17,000.
Roofing replacement average cost: $37,144
Additional home value: $21,482
Return on investment: 56%
Siding replacement average cost: $18,101
Additional home value: $12,467
Return on investment: 69%
Window replacement average cost: $21,302
Additional home value: $14,471
Return on investment: 68%
Deck addition average cost: $19,596
Additional home value: $12,604
Return on investment: 65%
Remodel House Into An Entryway
A grand entrance is a high-end upgrade for any home, averaging just over $9,000. While you may feel sticker shock with the price tag, consider the labor associated. This renovation calls for moving electrical elements, updating the trim, installing a wider casing and a painting.
High-end grand entry door average cost: $10,044
Additional home value: $6,116
Return on investment: 61%
Mid-Range entry door average cost: $2,082
Additional home value: $1,353
Return on investment: 65%
Home Renovation Cost Estimator Spreadsheet
Your home renovation costs will vary depending on your preferences. By using the home renovation cost estimator spreadsheet, you can easily fine-tune your budget to put your money toward what means the most in your home.
- Step 1: Consider how you’re going to finance your remodeling project. You can refinance your home for tax-free funds, apply for a construction loan or pay out-of-pocket.
- Step 2: For each project, copy the spreadsheet onto its own tab. Then estimate the prep work including inspections, design and permit costs.
- Step 3: Once your prep work is estimated, begin sourcing vendors and getting estimates for your project and adjust as needed.
- Step 4: Once your estimated costs are calculated and work begins, log the actual cost in column E. If needed, adjust your budget and log your outstanding balance accordingly.
Need cash to fund your renovation project?
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Home Renovation Cost FAQs
Still unsure whether to renovate or repurchase? Take a look at these commonly asked questions about home renovation costs.
Is it cheaper to remodel or build a new house?
The cost of remodeling is typically less than building a new home. Residential spend for purchasing new homes with upgraded kitchen and bathrooms typically exceeds that of remodels, their industries ticking $77 billion and $62 billion, respectively2. To fund your project, consider getting tax-free funds for your remodeling project with cash-out refinancing.
Is remodeling a home worth it?
Remodeling can be expensive but investing money in your home can increase the value for a higher ROI when reselling. It can also make living in your home more enjoyable and lucrative. Say you invest in new siding or landscaping for your home. This will boost its curb appeal and resale value, making it easier to sell your home and boosting the odds that you’ll generate the highest possible profit when you do sell.
Replacing your roof, repairing a sagging foundation or investing in new HVAC equipment will fix serious problems in your home. By tackling these problems, you’ll prevent future, even costlier problems such as water damage, mold or cracking walls.
What is the average cost per square foot to remodel a house?
The more square footage involved in your home renovation project, the more expensive it will be. Renovating an entire home will cost, on average, $10 – $60 per square foot5. As a result, the more square footage involved in your renovation project, the more you’re likely to pay.
The Bottom Line
Home renovation costs will vary based on structural or mechanical repairs, square footage, underlying issues, location and materials used. Start by using the home renovation cost estimator spreadsheet above, then talk with contractors to understand the exact estimates in your area.
Home renovation and remodeling aren’t easy. However, a happy home can help improve your well-being. Before you begin your project, consider the value of your time into your budget – the planning and remodeling processes aren't quick.
If you’re thinking about any home improvements, consider refinancing your house to help you budget for the costs of remodeling. You can also give us a call at (833) 326-6018.
Need cash to fund your renovation project?
Apply for a refinance and see how much you can get.
See What You Qualify For
Congratulations! Based on the information you have provided, you are eligible to continue your home loan process online with Rocket Mortgage.
If a sign-in page does not automatically pop up in a new tab, click here
Andrew Dehan
Andrew Dehan is a professional writer who writes about real estate and homeownership. He is also a published poet, musician and nature-lover. He lives in metro Detroit with his wife, daughter and dogs.
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