Home Renovation Costs in 2022
Thinking of replacing those old kitchen cabinets? Maybe you're planning to add a third bathroom or replace your home's carpeting with hardwood flooring. You might be dreaming of a finished basement with a bar and home theater. If you're mulling over a home remodeling project, you're not alone.
Depending on where you live, the size and age of your home and what projects you’re taking on, renovations can be cheaper than buying a home. According to a Houzz survey of the top 50 U.S. metro cities, homeowners are spending $15,000 on average per renovation project.
How Much Does It Cost To Renovate A House?
In today's market, Americans are spending around $15,000 on a single home renovation project. According to Rocket Mortgage, homeowners dealing with financial strains spent 48 percent less on their renovation costs than prior to the pandemic. People reported being more cautious with their renovation spend by turning to do-it-yourself projects and more budget-friendly finishes to keep overall renovation costs down.
Depending on the type of house and project, the average recommended spending for remodeling projects will vary. The National Association of Home Builders (NAHB) suggests spending a certain percentage of the home’s total value based on the room or upgrade, detailed in the chart here. >>
Cost To Completely Renovate A House
Depending on the characteristics of the build, the average cost to completely renovate a house can vary from $15,000 – $200,000. The final price tag typically depends on any structural or mechanical repairs, square footage, underlying issues, location and materials used.
Depending on the project, remodels will fall under one of three types of categories: high-end, mid-range and low-end.
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High-end: These are major renovations with designer materials and high-end products.
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Mid-range: Typically, these are renovations for projects typical in second homes with mid-range products and materials.
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Low-end: Remodels with minor upgrades typically found in starter homes are considered low-end, many of which are self-funded or DIY, and use low-end products.
In this article you’ll find the national averages of high-, mid- and low-end costs for popular renovations. The calculations include the return on investment to the nearest percentage based on Remodeling’s 2021 Cost vs. Value Report.
Gut Renovation
Depending on the square footage, gut renovation cost per square foot ranges between $60 – $150 and includes new plumbing, appliances, structural improvements, a new roof and an HVAC (heating, venting, air conditioning) system.
Interior Renovation
When it comes to renovating the inside of a house, homeowners must factor in the cost of demolishing the interior. This typically costs $1,200 – $4,700 with a high end of about $10,000. The total price includes the removal of debris, dumping fees, permits and tear out. Once everything is cleared out, you have to factor in the costs depending on the specific project.
A popular interior renovation that homeowners do is removing interior walls. This can cost anywhere from $300 – $10,000 depending on whether the wall is load-bearing or not. Load-bearing walls serve as the primary support of the home and removing them involves a great deal of guidance.
How Much Does It Cost To Add A Room?
The estimated cost of adding a room can range between $135,000 – $282,000. About 33 percent of people report renovating their primary bedroom to increase livability and overall function. Once complete, more than half of homeowners enjoy being home more and feel a major sense of accomplishment.
High-end average cost: $320,976
Additional home value: $152,996
Return on investment: 48%
Mid-range average cost: $156,741
Additional home value: $85,672
Return on investment: 59%
How Much Does It Cost To Renovate A Bathroom?
A modern bathroom is considered a luxury by many homeowners. Buyers often focus on a home's bathroom(s) when deciding whether or not to make an offer on a house.
Remodeling a bathroom, on average, costs $20,000 – $38,000. Renovations in the primary bath are typically only done when budgets are at or exceed $4,500. With budgets below this threshold, upgrades like floors, lights, counters and cabinets aren’t typically pursued, as paint becomes the less expensive option.
High-end average cost: $75,692
Additional home value: $41,473
Return on investment: 55%
Universal average cost: $38,813
Additional home value: $22,475
Return on investment: 58%
Mid-range average cost: $24,424
Additional home value: $14,671
Return on investment: 60%
Cost To Renovate A Kitchen
Kitchens are traditionally one of the first rooms homeowners remodel with average costs of $23,000 – $135,000. When buyers look at homes that are for sale, a modern kitchen is what often encourages them to make an offer. With budgets below $4,000, homeowners typically avoid making upgrades to countertops, cabinets and appliances in the kitchen.
High-end average cost: $149,079
Additional home value: $80,284
Return on investment: 54%
Mid-range average cost: $75,571
Additional Home Value: $43,364
Return on Investment: 57%
Low-end average cost: $26,214
Additional home value: $18,927
Return on investment: 72%
Garage Remodeling Costs
A complete garage remodel will range between $7,000 – $15,000. Small upgrades like a garage door replacement can add significant value to your home, nearly matching your investment at a 95% return.
Garage door replacement average cost: $3,907
Additional home value: $3,663
Return on investment: 94%
Exterior Remodel Cost
Exterior remodels can focus on the structural integrity or curb appeal of your home. For roof, siding and window replacements, you can expect to spend an average of nearly $68,000. To add a patio or deck area, expect to pay another $17,000.
Roofing replacement average cost: $37,144
Additional home value: $21,482
Return on investment: 56%
Siding replacement average cost: $18,101
Additional home value: $12,467
Return on investment: 69%
Window replacement average cost: $21,302
Additional home value: $14,471
Return on investment: 68%
Deck addition average cost: $19,596
Additional home value: $12,604
Return on investment: 65%
The Bottom Line
Home renovation and remodeling aren’t easy. Costs will vary based on structural or mechanical repairs, square footage, underlying issues, location and materials used. The more square footage involved in your home renovation project, the more expensive it will be. Investing in a happy home, however, is worth the expense and can help improve your daily well-being.
Before you begin your project, consider the value of your time into your budget as the planning and remodeling processes are often long and complex. If you have any questions or would like to discuss your project, please call Wallace Property Solutions at (970) 310-5966. We look forward to hearing from you.
Sources: Rocket Mortgage, Houzz, National Kitchen & Bath Association (NKBA), National Association of Home Builders (NAHB), HomeAdvisor, National Association of Realtors (NARI), Fixr.