Whether you are planning to give your kitchen a new look, upgrade your living room, or spruce up your entire home, a renovation cannot only transform your living space but also add to your property value. However, before you start looking for some home renovation inspiration online, it is important to budget for your project.
In this article, we will explore different factors that can affect home renovation costs.
Expected Home Renovation Costs in 2025
Here is what you can expect regarding the cost of various home renovation projects, such as basement waterproofing, bathroom remodeling, and general upgrades.
General Updates
General house upgrades include painting, flooring, and other minor updates like ductwork or insulation. Such upgrades can cost as little as $1500 or as much as $15,000.
Kitchen Remodeling
Kitchen remodeling can include upgrading electric appliances, cabinets, countertops, and more. In the United States, minor kitchen renovation projects in 2025 may start around $3,000 and range up to $25,000, whereas major remodels can range between $30,000 and $60,000. Luxury kitchen remodeling projects can cost up to $70,000.
Bathroom Renovations
Bathroom renovations include repairing fixtures and bathroom tiles and adding features like freestanding tubs and walk-in showers. An average bathroom remodel in 2025 can cost anywhere from $5000 for basic renovations to $50,000 for high-end luxury upgrades.
How to Budget for Home Renovations
Follow these strategies to design your budget for your next home renovation project:
Establish a Budget
The first step for planning your home renovation project is to set a clear budget. You need to determine how much you are going to spend on your project. Try to include a healthy emergency fund of about 10 to 20% of your renovation budget or at least six months of savings. However, try your best not to spend this contingency fund at all.
Estimate Costs by Searching Online
Research thoroughly before starting a home remodeling project. Various home improvement websites offer cost calculators to estimate the project cost by square foot, types of materials used, and other factors. These calculators provide an approximate cost for your projects, and you can get accurate bids from the contractors who visit your home.
Get Bids from Various Contractors
Experts recommend getting bids from at least three contractors before signing the deal. Meet them in person, check their website, look for testimonials, and ask for warranties and credentials. A good contractor will be upfront with their communication and will provide an estimated cost and timeline for the project.
Prioritize Needs Vs. Wants
Your home might need more than one renovation. The trick is to focus on the projects that will add the most value to your home and defer non-essential upgrades. Also, prioritize functionality over aesthetics. Improved aesthetic appeal does add value to your property, but when you have to choose between looks and function, functional upgrades should be your priority.
Adjust the Budget
You might need to adjust your budget after getting remodeling bids. Follow these tips to cut down costs:
- If you are a DIY enthusiast, you can do simple renovation tasks such as painting or hanging shelves on your own. However, consider calling professionals for major tasks like basement waterproofing or foundation repair.
- Upcycle old materials into new products.
Explore your Financing Options
Home renovation projects can be costly, so you must explore the financing options that fit your budget. Try to pay upfront for the remodel instead of opting for a Home Equity Line of Credit (HELOC), which can lead to deeper debt, especially if you have a fixed income. If you do not have enough savings to finance the remodel, then you can use a HELOC to secure financing.
However, do not just open an equity line without a proper plan.
Factors Influencing Home Renovation Costs in 2025
Numerous factors can affect home renovation costs. Have a look at them below:
Material Quality
Your choice of materials will greatly affect the cost of your project. Opting for premium or luxury items can increase expenses, while choosing budget-friendly materials can help lower the costs. For instance, marble costs somewhere between $40 – $200 and is a budget-friendly option for a bathroom or kitchen upgrade.
Location
Renovation costs can also vary based on the geographical location. Urban areas or regions with a high cost of living have higher renovation prices. Likewise, if you are renovating in a remote area, you also need to consider transportation costs.
Project Scope
Complex remodeling projects require more time and labor compared to smaller ones, so they have higher overall costs. Knocking down walls or reworking the floor will definitely cost more than just refreshing what’s already there (e.g., painting or fixtures).
Home Size
Renovating or remodeling a larger space will require more resources, labor costs, and time. Hence the higher overall costs.
Labor Cost
Expertise comes with a price. Electricians, plumbers, and waterproofing experts typically charge between $50 and $150 per hour, depending on their skills, experience, and location. You may have to pay even more to the engineers and the builders if your project requires structural work. The longer the project timeline, the higher the budget.
Common Home Renovation Mistakes
These are some common mistakes that a homeowner can make while budgeting for renovations.
Lack of Clear Planning
Lack of clear communication and ineffective planning can lead to misunderstandings, delays, and additional costs. Therefore, map out everything you want to do and the cost associated with it when planning to remodel.
Underestimating or Overestimating Costs
As described earlier, getting detailed quotes from multiple contractors can help avoid overestimating or underestimating costs. By understanding various factors that can lead to potential price fluctuations, you can set up a realistic and precise budget for your renovation project.
Neglecting Permits and Inspections
Neglecting the necessary permits and inspections can lead to fines, delays, and property issues. You need to stay informed and compliant with permits and laws to avoid costly setbacks.
Plan a Budget-Friendly Renovation Project for Your Home!
Renovations can be a burden on your pocket if they are not planned properly. The planning involves setting a clear budget, estimating costs by searching online, and getting bids from various contractors. Explore the financing options available for your remodeling project and consider various factors that can affect renovation costs.
Connect with reputed contractors to get an estimated cost for your project now!