An in-depth guide to home renovation costs in 2022

After living in a home for some time, you'll likely develop the urge to make a few changes. You might be dreaming of a new kitchen or mulling over the layout of your home. If you're debating whether it's time — or worth it — to venture into a home renovation project, you're not alone. Read through our in-depth guide to explore home renovation costs in 2022.

Point Editorial Team
June 17, 2022

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How much does a home renovation cost?

HomeAdvisor estimates that the cost to remodel a home in 2022 ranges from $18,000 to $78,000. Renovation costs can vary widely based on the property's condition, age, and style — meaning no two home renovation budgets will be the same. For example, restoring a Victorian home to glory or a full gut renovation will cost more than your typical modern home repair. 

Luckily for homeowners, there are improvement projects fit for every renovation budget. Focusing on minor upgrades — flooring, painting, and fixtures — can help you enhance the look of your home for less. Major remodels have a heftier price tag but deliver notable improvements — and significantly boost your home value. These might include layout changes, electrical and plumbing upgrades, and room additions. 

Aside from different price tiers of remodeling projects, there are three major types of home renovations: a full gut renovation, exterior home renovations, and interior renovations.

How much does a full gut renovation cost?

A full gut renovation can cost a homeowner anywhere from $100,000 to $200,000. They typically include tackling more extensive and detailed projects — such as adding an HVAC (heating, venting, air, and conditioning) system, upgrading the plumbing, or a structural redesign. These changes can require specialists, consultations, or permits, inflating the price. A full gut renovation comes at an average of $60-$150 cost per square foot to remodel.  

How much do exterior home renovations cost?

Exterior home renovations can focus on structural repairs or enhancing curb appeal. The exterior is considered the siding, brickwork, windows, doors, landscape, and roof of the property. Depending on what projects you plan to tackle, you can expect to spend between $5,000 and $15,000. The average cost of typical home exterior renovation projects in 2022 are: 

  • Landscape installation: $1,400–$5,700
  • Painting: $1,800–$4,400
  • Siding a house: $5,630 and $17,388
  • Window installation: $6,250
  • New roof: $8,500 to $14,300
Pro Tip: Homeowner insurance may cover all or a portion of the cost of new windows and a new roof. Consider an evaluation from a local company before your insurance provider performs an appraisal.

How much do interior home renovations cost? A room-by-room breakdown

The average cost of a total home renovation depends on where you’re focusing and how much you want to change. The most common areas to focus on include:

1. Cost to renovate a kitchen 

Kitchens are among the most popular rooms in a home — and kitchen appeal is a big selling point for prospective buyers. As a result, the cost to renovate a kitchen can get pricey. Expenses can range anywhere from a few thousand dollars for surface-level upgrades to over $65,000.

A few projects for every renovation budget include: 

  • $5,000–$30,000 upgrades: DIY projects (backsplash, removing a wall), lighting fixtures and faucets, painting, and trim
  • $30,000–$65,000 upgrades: moderately-priced cabinets, elevated hardware and appliances, and floors 
  • $65,000+ upgrades: top-of-the-line energy-efficient appliances, high-end material (stone, granite), hardwood flooring

Along with the costs of the materials, it’s crucial to factor in the price of demolition and labor. To that end, renovating a kitchen tends to be the most expensive, with an average of $150 cost per square foot to remodel. 

2. Cost to renovate a bathroom

Bathrooms can make up another significant portion of house renovation costs. Much like kitchens, these spaces sometimes require specialized plumbing and electrical work. You can estimate a $125 cost per square foot to remodel, according to HomeAdvisor. The average costs of various bathroom upgrades are generally: 

  • Bathtub replacement: as low as $1,300 and as high as $10,000 
  • Flooring: depending on the material, $800-$7,000
  • Toilet: anywhere from $100-$800
  • Countertops: price ranges from $900-$7,500

Realtor.com places the cost to renovate a bathroom at about $9,000 per bathroom — with specialty installations driving that price up. However, since master bathrooms, guest bathrooms, and half-baths all have different needs, projects can have a wide range of prices. 

3. Cost to renovate a bedroom

Bedrooms are a vital part of any home renovation. Fortunately for homeowners, they're also relatively inexpensive. According to Business Insider, a high-end bedroom renovation will cost roughly $7,880.

Depending on your home renovation budget, you can make simple improvements — like new flooring, lighting fixtures, and paint — to keep costs low. Alternatively, you can opt for fancier materials, custom closet organization systems, or adding extra space, which boosts remodeling prices. If your house has recently become an empty nest, a total home renovation is an excellent opportunity to turn one of your bedrooms into an office, craft room, or home gym.

4. Cost to renovate additions

Total home renovation costs can include room additions, house extensions, and even accessory dwelling units (ADUs) that are tenant occupied. For example, adding an extra bathroom to a house can add thousands of dollars in value — which you can cash in on at the time of sale or by renting. 

Making upgrades to your home — whether it be extending the garage or building an outdoor kitchen — can make your home a more substantial investment. Such enhancements are generally pricy but can produce a high return on your investment. The average price ranges for additions are:

  • ADU: $3,000–$30,000
  • Guesthouse: $15,000–$30,000
  • Outdoor kitchen: $5,057–$17,276.
5. Other home renovation projects

As you inspect your home for other areas for improvement, you may find additional ways to increase its functionality or aesthetic. For instance, you might be inclined to refurbish your chimney, refinish the driveway, or add an epoxy coating to your garage floor — all of which are doable. Of course, costs for each project and more will vary depending on your home.

Data graphic: Home renovations and remodels average $48,038
Home renovations and remodels cost $48,038 on average

What factors affect home renovation costs?

Various factors shape the cost of a remodeling project and should be considered when building a home renovation budget. External aspects — location, regional labor costs — and internal aspects — task complexity, size — can all impact pricing.

Labor costs

Established contractors with years of experience and glowing reviews tend to charge higher fees than newer companies. However, since you can vet the quality of their previous work, it's easy to judge whether the service is worth the price. Alternatively, DIY projects can save you hundreds in labor costs — just be sure you understand the full scope of the project.  

Geographic location

If you live in an affluent neighborhood, expect to pay more for remodeling than those in low-income locations. Professional labor can vary by as much as 20%, depending on where you are. For this reason, obtaining home renovation cost estimates from local experts is advisable.

Size of the project

Generally, more extensive renovations are cheaper per square foot compared to smaller projects. For example, refurbishing one small bathroom is often more expensive than two. Similarly, it's more cost-effective to opt for a total home renovation than to makeover one room at a time. This results from contractors having to account for overhead costs, set-up, and cleaning for every project they handle — regardless of size.

Pro Tip: Framing your home renovation costs by square foot lets you adjust general estimates to fit the dimensions of your home.
Project complexity

It should come as no surprise that the complexity of a project and the accessibility of a home influence renovation costs. Jobs that are labor-intensive and time-consuming will naturally cost more than straightforward tasks. For instance, if your house has multiple floors with a high-pitched roof, you will likely pay more for roof repairs than a homeowner living in a bungalow with the same-sized roof.

Materials and finishing surfaces

Materials, on average, make up 60% of your remodeling budget. However, the cost of material used can vary significantly depending on how much you’re willing to spend. If you have a tight budget, you can purchase low-cost materials. Conversely, if you don’t have any financial constraints, you can opt for high-end luxury products. 

Some of the most expensive materials are kitchen appliances, cabinets and countertops, and heating and cooling systems — like boilers and furnaces. As mentioned above, your home renovation budget should guide your decisions. Experts recommend investing in mid-level materials as they offer the perfect balance of quality, price, and visual appeal.

Unexpected roadblocks

Occasionally, an issue will arise during remodeling that was not noticeable before the start of the renovation project. These usually include problems with:

  • Water damage
  • Mold
  • Structural issues
  • Plumbing and electrical hazards resulting from poor installation.

Once noticed, they must be addressed immediately, which can halt existing projects. Since these problems tend to be expensive, it's wise to budget 20% of your renovation budget for miscellaneous expenses. For instance, if you plan to use $40,000 to do a home makeover, allocate $8,000 for unexpected issues.

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FAQ about home renovation costs

Are you still trying to decide whether it's a good time to make home renovations? Here are commonly asked questions about home renovation costs.

What is the average cost of a home renovation? 

HomeAdvisor notes home renovations and remodels average $48,038 for 2022. But, again, your home renovation budget will be unique to your projects and the factors affecting it. 

What is the average cost per square foot to remodel? 

The average cost per square foot to remodel in 2022 is roughly $10-$60. So, larger projects will have more substantial price tags. 

Is it cheaper to remodel or move?

In 2022, the average cost to build a new home in the U.S. is $283,105. However, since the price is impacted by location, cost of materials, and the contents of your dream home (size, look, appliances inside), the true cost of building can vary widely. These factors ultimately create a typical range between $110,774 and $451,918. If you're looking to improve for a top-of-the-line home, you'll likely pay much more for a new house. 

How to finance your home renovation costs

If you have the resources, the most promising way to fund a home remodel is by avoiding a loan and paying out of pocket. However, this is only possible for some American homeowners. If you're considering financing for home repairs, here are the best ways to cover the costs:

Home Equity Line of Credit

A home equity line of credit (HELOC) works like a credit card — offering a revolving line of credit — backed by your home's equity. The amount of equity you have and the lending partner determine your limit. You can withdraw funds as frequently as desired, provided you stay within the limit. There is, however, a set minimum amount for every withdrawal.

Personal loans

Personal loans are popular because of the simplicity and speed of the application process. Moreover, you don't need collateral to qualify. The payment plan entirely depends on the agreement between the lender and the borrower. Since they are unsecured, most personal loans have a lower borrowing limit, and the interest rates are usually higher.

Home Equity Investment

With a Home Equity Investment (HEI), a company like Point will invest in a portion of your home's equity. In return, you get a lump sum of cash at flexible terms while retaining ownership and control of your home.

There are no monthly payments, and you can buy back your equity anytime within a 30-year term — without prepayment penalties. In exchange, you repay the amount plus a percentage of your home's appreciated value over the term. It's a homeowner-friendly and flexible option for financing home repairs.

Credit cards

Credit cards offer a simple way to finance your renovation project. They're easy to access but do have high-interest rates attached to them. Therefore, paying back your loan as quickly as possible will keep your balance from spiraling out of control and help protect your credit score. Unfortunately, failure to repay the balance within the agreed period makes this financing option too costly for most.

Final thoughts

There's no single answer to the question, "How much money do you need to remodel a house?" Instead, we recommend walking through your home and making a list of 'must-haves' and 'if-possible' priorities to stay within your home renovation budget. If money is tight, skip the full gut renovation and focus on making minor improvements. 

You can also leverage the equity in your home or use a home equity investment to cover the costs or indulge a bit more. With a Home Equity Investment, homeowners can get cash with no monthly payments in exchange for a share of their home’s future appreciation. Contact our team to learn how you can use your home's equity to elevate your home and increase the value of your property. Secure the funds you need to achieve your dream renovations and continue enjoying your home for years to come.

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