Average Home Improvement Cost in 2025 [In-Depth Breakdown]

There are several reasons why you might consider remodeling a house.

• You may like the overall property or its environment and would rather invest to remodel it than sell it.
• Perhaps home improvement costs are cheaper than a new mortgage.
• You may also want to increase the value of your property before selling or are interested in house flipping.

Whatever your reasons for remodeling a house, this post will provide a breakdown of home improvement costs to help you make informed decisions.

What Is the Average Home Improvement Cost?

Home renovation costs range from $17,697 to $79,125, with the national average at $48,384. The remodeling costs widely depend on the complexity of the project.

Outside the range, smaller, less complex renovations can cost as little as $3,000, while the highest-value renovation projects can go up to $167,000.

Let’s briefly go over the expected expenses for a low-end, mid-range, and high-end home remodel.

Low-End Home Remodel

This often covers cosmetic upgrades with budget-friendly materials.

It can cover improvements like painting, affordable countertops, basic cabinetry for a kitchen remodel, bathroom renovation with basic fixtures, and some other minor upgrades.

Mid-range Home Remodel

Mid-range home remodeling involves everything in a low-end remodel but with above-average materials and finishes.

It can also include the installation of new light fixtures and mid-level and energy-efficient windows.

High-End Home Remodel

A high-end remodel is a major renovation that typically includes luxury materials, custom designs, attic conversion, roof replacement, new additions, or other major upgrades.

Types of Home Remodel

There are two basic types of home remodeling: whole-house and room-specific remodeling.

Whole-House Renovation

As the name implies, whole-house remodeling typically involves updating or renovating the entire house.

It can include structural changes like foundation repairs and replacing walls, system updates like plumbing and electrical wiring, and interior upgrades like painting and updating flooring. It is a more extensive and costly option.

Room/Project-Specific Renovation

Room- or project-specific remodeling projects focus on renovating specific rooms or individual projects within a house.

For example, you can decide to change just the floor plan or the exterior painting of the house.

It’s ideal when only certain areas of the house need attention. Plus, it’s relatively less expensive.

Factors That Affect Home Renovation Costs

Material, mechanical, labor, and home inspection costs are some factors that affect a home renovation’s overall price.

Taxes and permit costs (when having to make structural upgrades) also play a part. Now, let’s see how much each factor contributes on average.

Materials

The type and quality of materials used in home renovation projects can significantly affect the total cost.

For example, laminate floors are more affordable than higher-end materials like hardwood floors.

The material costs also depend on the room you’re renovating.

Generally, however, materials often contribute up to 40% of the home renovation costs.

Mechanical

Upgrading or replacing mechanical systems is often a major expense in home renovations.

This includes work on HVAC systems, plumbing, and electrical wiring. Mechanical upgrades can take up to 36% of renovation costs.

Labor

Labor costs vary depending on the complexity of the project and the contractor’s experience.

You could hire a general contractor, who in turn hires subcontractors for different aspects of the home remodeling project.

Labor costs are usually $20 to $150 per hour. But it can take up to 20% of your renovation budget.

Permits

If you’re renovating your home structurally or making other major changes, you must apply for a permit before beginning the renovation process.

This is to ensure the renovations comply with the current building codes.

Permit costs for small projects like kitchen remodels range from $50 to $300, and they can go up to $1800 for bigger remodels.

Consult your local government authorities to figure out the exact amount and what permits you’ll need for your home improvement projects.

Designing

Hiring a designer or architect to help with the renovation’s layout, design, and overall vision can enhance the project’s outcome and increase the house renovation cost.

This can cost you an additional $100 to $200, depending on the level of design you require.

Home Inspection

A home inspection is necessary to get an expert opinion on the state of the house and what needs to be changed.

This helps prevent unforeseen expenses during renovation.

Hiring a home inspector adds an extra $300 to $500 to your home renovation cost.

Taxes

Taxes are more of an aftereffect of your home renovation rather than an upfront cost.

The property’s tax value might increase after you complete the renovations.

For example, your house’s overall value can increase by $50,000 after remodeling the basement. While this is good news if you’re selling the property, it can also mean an increase in property taxes.

Scope Creep

Scope creep refers to the unplanned expansion of your renovation objectives.

When contractors get to work and the vision starts coming together, you may add new features to the project.

If you skip the home inspection process, you may discover other necessary upgrades during the renovations.

Consequently, unexpected costs may arise to expand your necessary budget.

How Much Does House Renovation Cost by House Size?

The average cost of remodeling a house per square foot ranges from $15 to $60. You can calculate your home’s size or see the table below for estimates per square foot.

Square Feet	Average Cost Per Square Foot
900	$9000 – $54000
1000	$10000 – $60000
1200	$12000 – $72000
1500	$15000 – $90000
1800	$18000 – $108000
2000	$20000 – $120000

How Much Does Home Remodeling Cost Per Room?

Home remodeling costs may also vary based on the part of the house you want to remodel.

Let’s explore the cost breakdown for different rooms and areas of the home.

Bathroom

Bathroom renovation costs typically range from $3000 to $25,000.

The actual price depends on your bathroom’s size, the scope of the renovation, and the quality of materials you choose.

This average cost for bathroom remodeling also varies by type.

• A powder room in a house can cost between $5,000 and $10,000 to renovate.
• Renovation costs for guest bathrooms range from $14,000 to $20,000.
• A master bedroom remodel, on the other hand, may cost up to $30,000.

Kitchen

A kitchen remodel usually costs above $10,000. It can get over $100,000 depending on the new appliances you’re getting, cabinetry, plumbing, and layout changes.

You may spend up to $25,000 getting new appliances, which is heavily influenced by your preferences.

Replacing countertops is another expense that can cut into your remodeling budget. Expect to spend over $3000 on countertops alone.

Plumbing costs between $4000 and $7000. It usually takes at least 4% of the kitchen renovation budget.

Living Room

Remodeling a living room costs between $5000 and $15,000. The cost is largely affected by materials and labor.

Materials account for about 70% of the total costs, while labor costs account for about 20%.

The size of your living room also affects the overall expense. See the table below for cost estimates per square foot.

Square foot (sq. ft.)	Average Cost
300 – 400	$500
400 – 500	$780
600 – 800	$1,200 – $2,000

Bedroom

A bedroom remodel typically costs between $10,000 and $15,000.

The expenses vary based on upgrades like closet expansion or custom wardrobe organization systems, flooring replacement, lighting and fixture installation, and painting.

Basement and Attic

Basement and attic remodels can cost between $15,000 and $40,000, depending on the project’s scope.

These areas of the house are usually unfinished. So, if you plan to turn them into a living space, expect the expenses to get to the higher end of the range.

Proper ventilation, framing, insulation, and drywall are essential upgrades, contributing to the overall cost.

Electrical and plumbing work will also increase expenses.

The cost of renovating a basement or attic depends on your vision for the space.

If you intend to make it an entertainment area, you will spend additional money on new appliances.

Garage

If you choose to renovate your garage in a simple way, expect to spend between $7,000 and $15,000 (or even less for a quick upgrade like a paint job).

However, if you want to convert the garage to a living space, like a home office, the expenses may rack up to $24,000.

Home Exteriors

Renovating your home exteriors is an investment that improves curb appeal and functionality. The average cost for this renovation varies based on the specific aspects you want to upgrade.

Check the table below for common exterior renovations and their associated costs:

Renovation	Cost
Roof replacement	$6,000 – $80,000
Exterior painting	$5,000 – $12,000
Deck building	$3,900 – $10,500
Window replacement	$300 – $1,200
Gutter installation	$1,000 – $6,000

How Much Does House Remodeling Cost by Type?

Different home improvement projects, such as gut and remodel projects, historic home restorations, and home additions have different budget considerations. Let’s examine the average cost for each.

Gut and Remodel

In a gut and remodel project, a space is completely gutted, often down to the studs, and then rebuilt from the ground up.

This extensive renovation costs between $100 to $200 per square foot.

Historic Home Renovation

Renovating a historic home involves additional challenges that may increase the total expenses.

These mostly involve structural upgrades; you’ll need licensed contractors with experience to do a good job.

Whole House

If you’re considering a whole-house renovation, expect to spend an average of $10 to $60.

The overall cost depends on the size of your house, so you can refer to the table that contains the average cost of renovations per square foot.

The materials and scope of work also impact the overall expense.

Home Addition

Home additions allow you to expand your living space.

For example, you can add a swimming pool, a room, or an extra structure to your home to increase its square footage. An in-ground swimming pool will cost above $20,000.

Generally, however, home additions range from $20,000 to $80,000.

How to Save Money on Home Renovation Projects

If you’re overwhelmed by the average costs of home renovation projects, don’t worry. There are ways to save money on renovations, including:

1. Don’t go for the first contractor who gives you a quote. Get multiple bids and compare prices.

Hiring a general contractor as a busy physician will save you the stress and labor costs of managing different subcontractors.

2. If you have the time, consider doing some work yourself to reduce overall costs. You can do the paint job, door replacements, building shelves, or other projects you’re confident you can personally tackle.

3. Use budget-friendly materials where possible.

4. Search for home improvement grants to offset the renovation costs.

5. You don’t have to do the whole house renovation. Prioritize key areas and work on other projects as your budget allows.

Final Thoughts

Depending on the type of home renovation, costs can range from a few hundred dollars to several thousand.

Understanding the average costs for different projects helps you decide if renovating your house is a wise financial move.

If you’re unsure, reach out to us at Physicians Thrive.

Our team of professionals is ready to help you understand the impact of your decision on your financial future.

So, contact us today to make informed decisions about your home and finances.