How Much Does it Cost to Renovate a House in 2023?

Americans spent $427 billion in 2022 vs $368 billion in 2021 in home improvements. Experts predict spending on home improvements to rise in 2023.

High mortgage rates entice homeowners to renovate and continue to live in their current homes rather than hunt for a new one. Moreover, home renovation projects can bring in up to 60% ROI and is a great way to increase home value.

Read further to know how much it costs to renovate a house and what high ROI renovation projects you should invest in in 2023.

How Much Does it Cost to Renovate a House?

The average home remodeling cost in the US is about $50,000. However, prices can vary from $18,000 for a simple redesign to $150,000 for a major restoration project. High-end remodeling will cost even more.

House renovation costs depend on various factors. These include the size of your home, underlying repair costs, material costs, and labor fees.

Here are a few home renovation costs you must consider before undertaking a renovation project:

• Labor Costs – $20 to $150 per hour: The labor cost depends on the scope and complexity of the project. It includes the cost of hiring contractors, electricians, plumbers, and other professionals. As a thumb-rule, keep aside 10% – 20% of your home renovation budget for labor expenses.
• Permits Costs – $400 to $1,800: You need to acquire permits before beginning the renovation project. Permits ensure compliance with safety. Local permits may include building codes, zoning regulations, accountability, inspections, and insurance requirements.
• Interior Designing Costs – $100 to $200 per hour: If you have elaborate renovation plans you may have to hire a professional interior designer. You can DIY interior renovations if you are confident about your design skills.
• Home Inspection Costs – $300 – $500: Budgeting for unforeseen expenses such as sudden repairs can save you a lot of grief later. It’s best to conduct a home inspection before the start of your renovation project.

In general, the price of remodeling a home in the US might differ greatly depending on the project. You can use a renovation cost calculator available online to estimate your remodeling costs.

How Much Does it Cost to Renovate a House By Size?

Size matters when it comes to home renovation expenses. It costs about $15 to $60 per square foot on average to renovate a house.

Here’s the table showing renovation costs per square foot:

Project-Wise Cost to Renovate a House

You may want to renovate your home completely or just remodel a specific room. Here are the costs of the most common renovation projects:

Cost to Renovate a Bathroom: $5,000 to $32,000

Bathroom renovations can vary greatly in cost depending on factors such as the size of the bathroom, the scope of the renovation, the quality of materials used, and the location. On average, renovating a bathroom can range from $5,000 to $30,000 or more.

Here’s a list of bathroom renovation costs by type:

• Powder Room – $5,000 to $10,000: It may include vanity upgrades, flooring, and lighting expenses.
• Guest Bathroom – $14,000 to $20,000: Guest bathroom renovation may include bathtub and shower upgrades, new wallpaper, and more.
• Master Bathroom Remodel – $30,000+: It may include new lighting, tiles, and double vanity fixture expenses.

Cost to Renovate a Kitchen: $25,000 to $120,000

The cost to remodel a kitchen will depend on the scale of your project. A simple refresh will be much cheaper than a proper remodel where you replace or add plumbing, cabinets, etc.

We have listed a few of the common kitchen upgrades and costs for each below:

• New Appliances – $3,800 to $25,000: Costs of new appliances will depend on your taste and preferences. A new refrigerator can either cost you $500 for a basic model or up to $10,000 for a top-of-the-line model.
• Plumbing – $4,000 to $7,000: Upgrading or replacing plumbing is a costly part of your kitchen remodel. As a thumb rule have at least 4% of your total kitchen renovation budget for plumbing.
• Countertops – $3,200 to $8,500: Replacing countertops can be a big expense. You can cut costs by replacing the doors or repainting the cabinets instead of replacing the entire structure.

Cost to Renovate a Living Room: $1,200 to $2,000

The cost to remodel a living room primarily depends on labor and material expenses. Labor typically accounts for 15% – 30% of the total cost, while materials make up 70% – 85%.

The average costs of remodeling a living room by size are as follows:

Cost to Renovate/Convert a Garage: $1,500 to $50,000

Renovating your garage can improve the curb appeal of your property and increase your ROI. You can either renovate the garage to upgrade its look and function or convert it into a new room.

• Cost to Renovate a Garage – $7,000 to $15,000: You can give your garage a fresh look with a simple paint job, add extra storage, or change the flooring. Some homeowners have spent less than $2,200 for a quick garage update.
• Cost to Convert a Garage – $5,719 to $24,316: The size of your garage will largely influence the cost of conversion. You can turn your garage into an extra bedroom, office space, or a man cave.

Cost to Renovate Exteriors: $5,000 to $15,000

The exterior of your home is its first impression. You can increase your curb appeal and improve the value of your home with an exterior renovation.

Listed below are common exterior renovation costs that bring in high ROI:

Cost to Build a Swimming Pool: $23,000 to $40,000

The cost to build an inground swimming pool starts at $23,000. An above-ground pool can cost as low as $1,000.

Here are a few factors that will influence the cost of building a swimming pool:

• Pool Size, Shape, and Type: In-ground pools typically incur a cost ranging from $50 to $125 per square foot on average. The pool’s size primarily determines the project cost, with larger sizes resulting in higher expenses.
• Labor Costs: Labor typically accounts for 25% to 50% of the total cost of building a pool. The cost of labor can vary depending on the type of pool being installed. Inground pools generally have higher labor costs compared to above-ground pools.
• Landscape: Be ready to spend an average of $3,000 to $5,000 or $4 to $12 per square foot for professional landscaping surrounding your pool.

Cost to Add a Room: $22,440 to $80,930

It’s usually cheaper to build an add-on to your existing space than build a new home. Additionally, it will take only a month or two to add a room.

According to HomeAdvisor.com, it will cost you between $80 to $200 per square footage to add a room. Here are the most common home additions and their costs:

• Mudroom – $4,000 to $12,000: A mudroom can make a great addition to your home, especially for homes with children and pets. You can build a 6×6 room for under $5,000.
• Sunroom – $8,000 to $30,000: A sunroom is a great way to elevate your home. The cost to build a sunroom largely depends on the size and materials used.
• Second-Story Addition – $80,000 to $600,000: Adding an extra floor to your home is a huge project. You can build a partial second story for $80,000 to $250,000 or a full second story for $100,000 to $600,000.

Cost to Gut and Remodel a House: $20,000 to $200,000

For a complete gut remodel of your home you can expect to spend around $100,000 to $200,000 or $100 – $200 per square foot.

Here’s a list of major gut renovation projects with their costs:

Additional Renovation Costs

You may face a few unexpected costs during a home renovation project. It’s best to prepare beforehand.

Refer to the table below to see the additional house remodel costs you may have to incur:

📌 Tip: Use a whole house renovation cost calculator to get an estimate for your home renovation project.

Home Improvement Loans

Homeowners can use a loan for various home improvement projects. It covers renovations, repairs, and remodeling costs. Strategic upgrades increase home value and attract potential buyers.

Average home improvement loan rates currently range from around 6.50% to 36%. Lenders determine the rate based on factors such as credit score. Higher scores result in lower rates.

» Home Improvement Loans: Check out our blog on home improvement loans for more details.

Bottom Line

The remodeling cost of a house varies depending on its structural or mechanical work, square footage, underlying problems, location, and materials. Use an online home remodel cost calculator to find the average price to remodel your home.

Talk to local contractors about labor and material costs and availability. Get the required permits before starting a home renovation project. Be cash ready for the renovation expense or consider refinancing as an option.

Frequently Asked Questions

» Sources: We have sourced our information from HomeAdvisor, Architectural Digest, BobVila, HomeGuide

Home Renovation Costs