Average Home Renovation Costs

American homeowners spent more than $600 billion on home renovation costs in 2024, according to a 2025 report from the Joint Center for Housing Studies at Harvard University.  

That’s 50% higher than it was before the pandemic.  

If you have renovations that need to be completed, knowing what costs to expect will help you know how much to save (or borrow). You might need just $1,500 to redo a bedroom — or more than $80,000 if you want a new, high-end kitchen. We’ll help you figure out average home renovation costs and ways you can cover them so you can plan your next project. 

Key takeaways 

• The average home renovation costs about $22,000, though the price varies by project, location, and other factors. 
• Kitchen and bathroom renovations tend to be the most expensive, in the neighborhood of $80,000. 
• The cheapest renovations on average are exterior projects, such as replacing landscaping ($3,500) or vinyl siding ($11,000). 
• More than half of homeowners tap into their home’s value to cover renovation costs with home equity loans or home equity lines of credit. 

Average cost to renovate a home

The median household spending on renovations was $20,000 in 2024, according to a 2025 U.S. Houzz and Home Study on renovation trends. Home services company Angi says spending averages about $15 to $60 per square foot, although some renovations average as much as $150 per square foot.  

How much home renovations cost can vary widely, depending on a range of factors, including: 

• The age of the home: Older homes tend to require heftier repairs and renovations. Owners of homes built before 1940 spent 50% more on renovations. 
• Location of the home: This can affect the cost of labor and materials. For example, labor costs may be higher in cities vs. rural areas. 
• Homeowner income: Homeowners in lower income percentiles tended to spend a third of what those in the higher percentiles spent on their renovations. 
• Type of renovation: The type, scope, and complexity of the project, and quality of finishes and materials, greatly affect the total cost of renovations. 

Home renovation costs per project 

To get a better understanding of the cost of home renovation, let’s break down the average costs by project type. 

Kitchen renovation 

Kitchen renovations are popular and tend to deliver a strong return on your investment. The average costs of kitchen renovations vary significantly depending on your project scope:  

• Minor kitchen remodel with midrange finishes: $27,492 
• Major kitchen renovation: $79,982 
• Major kitchen renovation with upscale finishes: $158,530  

Source: Journal of Light Construction (2024) 

Bathroom renovation 

Bathroom renovations are fairly in demand, according to the National Association of REALTORS®, with 35% of REALTORS® suggesting this change for sellers about to put their home on the market.  

The average cost of a bathroom remodel ranges: 

• Midrange renovation: $25,251 
• Upscale renovation: $78,840 
• New bathroom: $107,477 

Source: Journal of Light Construction (2024) 

Bedroom renovation 

Common bedroom renovations include new flooring, paint, wallpaper, windows, window treatments, lighting, furniture, and soft furnishings. Because these updates don’t involve plumbing or appliances, they generally cost less:  

• Average bedroom renovation costs: $1,500 to $5,500 
• Average cost to add a primary suite, with bathroom: $339,513 

Sources: Angi, Journal of Light Construction (2024) 

Exterior home renovations 

Exterior renovation projects boost your curb appeal, but the average cost for these changes can vary dramatically: 

• New siding: $11,287 for stone veneer, $17,410 for vinyl siding, $20,619 for fiber-cement siding 
• Adding a deck: $17,615 for wood, $24,206 for composite 
• New landscaping: $3,500 to up to $30,000 with hardscaping 
• New roof: $30,680 for asphalt shingles, $49,928 for metal 
• Window replacement: $25,799 
• Garage renovation: $1,500 to $50,000 

Sources: Angi, Journal of Light Construction (2024) 

How to estimate your home renovation costs

While it helps to know average home renovation costs, you’ll want to get more specific estimates when it comes to your own projects. Here’s how to plan your costs for a home renovation: 

1. Define your goals: Decide which room(s) you want to renovate and why. Keep your area’s comparable values in mind so you don’t over-renovate beyond what future buyers will be willing to pay. One rule of thumb is to keep your renovation within 30% of your home’s value. 
2. Break down the line items: The most accurate estimations will budget for both labor and materials. Use online estimator tools to calculate how much labor may cost in your area. Decide whether there are some aspects of the renovation you can do yourself to keep costs down. 
3. Budget for unexpected expenses: Add at least 10% to your budget for contingencies, emergencies, and unexpected expenses. This will help cover the cost of making repairs or changes to your plan that you weren’t counting on (but which inevitably crop up). 
4. Compare quotes: When you’re ready, reach out to multiple contractors for quotes on your project. Shop around to find trusted professionals who offer solid pricing and positive testimonials. 

Options for funding your home renovations

Sometimes pricing out your dream home renovation can lead to sticker shock. Fortunately, there are multiple ways you may be able to pay for your home remodel. 

Pay in cash 

Almost 30% of homeowners save up for their home renovation project and pay in cash, according to the National Association of REALTORS® (NAR). This method is less common primarily because of the time it can take to save up the thousands of dollars necessary for your project.  

Use home equity 

A far more common method for covering home renovations is to use your home equity, which is the amount of your home that you actually own. According to NAR, more than half of owners (54%) choose a home equity loan or home equity line of credit (HELOC) to cash in on their home’s value and use it to pay for updates and improvements.  

Cash-out your mortgage

A cash-out refinance is another way to access funding for home renovations. With this method, you’ll replace your existing mortgage with a new one that’s larger, with the excess delivered to you as cash you can use to pay for renovations. If your new mortgage rate is lower than your existing mortgage rate, it could save a little interest, too. If rates are higher, this method could cost you more money over time. 

Secure other financing 

NAR also reports approximately 10% of homeowners lean on credit cards to pay for home renovations. 

Other possible ways to finance a renovation include: 

• Personal loans 
• Special home loans, such as an FHA 203(k) 
• Financing directly with a home remodeling company 
• Borrowing from family 

Use your home equity to cover renovations 

Home renovation costs can quickly add up to thousands of dollars, and you may not have that kind of cash just laying around. But you do have value in your home — the average homeowner has more than $300,000 in home equity. Knowing how to use your home equity could give you access to the funds you need to complete your home renovation goals.  

Use digital tools and calculators from AmeriSave to discover how much equity you have and which loan options best support your home renovation goals. Get started today and move forward on your next project.  

Frequently asked questions

How much does the average home renovation cost?

You can expect to spend up to $60 per square foot, on average, for a typical home renovation. However, this figure can vary widely depending on where you live, the condition of your home, and the type of updates you want to make. 

How do people afford home renovations? 

Considering that the median home renovation cost is about $20,000, being able to afford this kind of expense isn’t easy. That’s why more than half of homeowners cash into their home equity to cover renovation costs. 

What is the 30% rule for renovations?

To avoid over-improving your home (which can make it tough to price your home competitively when you go to sell), restrict your home renovation costs to no more than 30% of your home’s current market value.