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A Home Renovation Can Cost Tens of Thousands of Dollars. Experts Share Ways to Prepare and Save – NextAdvisor

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Home renovations are more popular than ever, as people are spending more time at home and thinking about how to make their living spaces work for them.

The price tag for a typical home remodel can be in the tens of thousands of dollars, but rising home values have offered homeowners more opportunities to afford those costs. According to mortgage technology and data provider Black Knight, the average homeowner gained $48,000 in tappable equity in 2021, a 35% increase from 2020. That could be helping to drive the popularity of renovations, as homeowners often draw on home equity loans or lines of credit (HELOC) to finance renovation projects. 

While homeowners have more equity to help pay for the work, costs have also gone up, driven by increased labor costs and supply chain issues affecting building materials.

Whether you’re using a home equity loan, home renovation loan, or your own savings to update your house, it’s important to estimate costs upfront before you dive in. 

How Much Does It Cost to Renovate a House?

Home renovations can involve anything from repainting kitchen cabinets to refinishing hardwood floors to replacing old windows with new ones. Even small changes, such as painting a room or replacing light fixtures, can make a big difference to the look and feel of a room. 

While some homeowners remodel for their own aesthetic enjoyment, others choose to renovate to increase the resale value of their home. Renovating bathrooms and kitchens tend to have the best return on investment, says Allie Weiss, U.S. digital director of Architectural Digest. “It can be costly to replace your appliances, but if they are dated that is likely to have a major impact.”

The chart below shows the average costs of popular home renovations for a house of about 2,500 square feet, according to Realtor.com. Keep in mind that these averages are just estimates; house renovation costs can vary significantly based on such factors as the materials you choose and your location. 

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Source: https://time.com/nextadvisor/loans/home-equity/average-cost-home-renovation/

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Common Renovations Projects Average Cost to Renovate 
Kitchen $10,000 – $50,000, with an average of $20,474
Bathroom $9,000
New Floors $4,400 for wood; $2,800 for laminate
Window Replacement