Yahoo Finance This Is How Much Americans Typically Spend on 4 Popular Home Renovations
The average home renovation costs $51,336, and homeowners can expect to spend between $19,504 and $86,917, according to a recent study from Angi. However, various factors affect the total cost you pay.
According to Angi, the location of your home matters when it comes to the cost of your renovation. This is because regional and local labor price fluctuations have a significant impact on home improvement projects, and labor charges in metropolitan areas are often higher than in rural locations. Regional material prices can also affect costs.
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For example, the average home renovation cost in Austin, Texas, is $39,400, whereas in San Francisco, it’s $56,500. With that in mind, here’s how much Americans typically spend on various home renovations, according to Angi’s data and two home renovation experts.
Most Common Home Renovations
GOBankingRates asked a couple experts what their most common home renovations were in 2023.
Krixelle Sant, founder and CEO of Sell My House Fast For Cash, said her company pays cash for houses and resells them. However, they try to increase each house’s value by renovating it before reselling.
“Some of the most common home renovations we handled in 2023 included kitchen and bathroom remodels, room additions and outdoor living space projects,” she said. “We also saw an increase in requests for energy-efficient upgrades, such as solar panel installations and smart home technology integrations.”
Kristin Hintlian, co-owner of Bonsai Builders, which specializes in high-quality renovations, said that the most common renovations their company handled in 2023 were kitchen remodels, bathroom renovations and full-gut renovations of older homes.
“We also managed several conversion projects, such as turning basements into livable spaces and transforming outdated floors to meet modern standards,” she said.
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Average Costs for Different Types of Home Renovations
Here’s a breakdown of the average costs of each home renovation the two companies completed in 2023, as well as Angi’s data for comparison.
Bathroom and Kitchen Renovations
Kitchen renovations range between $14,550 and $44,000, according to Angi. Bathroom renovations cost about $11,250, on average, but premium finishes can elevate costs up to $28,000 or more.
According to Sant, 2023 kitchen and bathroom renovations completed by her company typically ranged from $10,000 to $20,000 depending on the scope and size of the project.
Hintlian said her company’s 2023 kitchen renovations typically ranged from $15,000 to $40,000. “High costs are often linked to custom cabinetry, premium appliances and significant layout changes,” she explained.
Bathroom renovations, Hintlian said, averaged around $10,000-$25,000. “Prices were driven by the quality of tile work, custom fixtures and necessary plumbing upgrades.”
Room Additions
According to Angi, home additions average between $22,400 and $81,000. Sant said room additions completed by her company averaged around $20,000 to $100,000.
“For more expensive projects, such as room additions and kitchen remodels, the cost is justified by the added square footage and improved functionality of the space,” she explained. “These renovations can significantly increase the value of a home and make it more appealing to potential buyers.”
Full-Gut Renovations
“These projects ranged from $100,000 to $300,000,” Hintlian said. Angi’s data extended the range significantly, placing gut-and-remodel renovation costs between $100,000 and a whopping $650,000.
Hintlian explained that the costs her company charged were justified by comprehensive structural changes, system upgrades — plumbing, HVAC, electrical — and high-end finishes that transformed the entire space.
Average Spend on a Home Renovation
“On average, we spend around $20,000 to $50,000 on a home renovation project,” said Sant. “However, this can vary depending on the specific needs and desires of the project.”
Hintlian said, “On average, our clients usually spend around $50,000 on their home renovation projects, considering a mix of minor updates and extensive remodels. This average reflects the quality craftsmanship and custom solutions we provide.”
Again, according to Angi’s data, the average home renovation costs $51,336, and homeowners can expect to spend between $19,504 and $86,917.
Issues That Can Cause Renovation Costs To Change
The initial estimate for your home renovation is likely to change. Hintlian said that clients often end up spending more than initially planned on renovation.
“Unforeseen issues like hidden water damage, upgrading to higher-quality materials once the project is underway or adding new features based on evolving needs contribute to these additional costs,” she explained. “Detailed initial assessments and maintaining a flexible contingency budget can help manage expectations and mitigate unexpected expenses.”
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