Factors that Drive Up Home Remodeling Costs

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Is it time to move forward with planning your home improvements? What size investment will it take? What is a realistic return on investment? Predicting how much you’ll be investing can be dizzyingly complicated, as there are a host of variables and factors that will determine the budget. While some are obvious, like the size of the home and scope of the project, others include seldom-thought-of factors like local labor costs and unknown structural issues. Whether you’re aiming to do one room, a whole-home renovation, or a few minor upgrades, understanding what influences the cost can help you better plan your budget. 

In this blog post, the renovation experts at Renovation Drafting and Design will break down the major elements that determine renovation costs, as well as provide three example budget tiers to give you a clearer idea of how to plan for renovations and what to expect.

Major Factors Affecting Home Renovation Costs

  1. Size of the Home
    • Larger homes naturally require more materials, labor, and time to renovate. A 3,000 square-foot house will cost significantly more to remodel than a 1,500 square-foot home.
    • Consider not just the total square footage but also which areas you’re renovating. Kitchens and bathrooms, for example, tend to be more expensive per square foot due to the cost of appliances, cabinets, and countertops.
  2. Type of Renovation
    • Cosmetic updates (painting, new fixtures, and flooring) tend to be on the lower end of the cost spectrum.
    • Structural changes (removing walls, adding rooms) or upgrades that involve plumbing or electrical work will increase costs.
    • High-end finishes such as marble countertops, custom cabinetry, or hardwood flooring can significantly increase your budget.
  3. Materials
    • The quality and type of materials you choose have a direct impact on the cost. Opting for laminate countertops versus granite or choosing prefabricated cabinets instead of custom-made can create a massive difference in the final bill.
    • Materials also vary in price depending on supply and demand, so sourcing materials locally can sometimes lower costs compared to imported options.
  1. Labor Costs
    • Labor is one of the largest components of a renovation project. The complexity of the job, the number of professionals needed (plumbers, electricians, carpenters), and even the region where you live can influence labor costs.
    • Hiring experienced and reputable contractors may cost more upfront but can save money in the long run by avoiding mistakes or delays. Always get multiple quotes and check reviews before hiring.
  2. Permits and Regulations
    • Most renovations require permits, which add to the overall cost. This is particularly true for structural changes, electrical updates, and plumbing work. Check local regulations and fees.
    • In some areas, obtaining permits for certain types of work can be expensive and time-consuming, especially if you’re working in an older home with specific zoning laws.
  3. Unforeseen Issues
    • Older homes, in particular, can hide issues like mold, water damage, or outdated wiring that need to be addressed during renovation. It’s essential to leave room in your budget for these unexpected repairs.
    • A contingency budget of 10-15% is generally recommended.

Final Thoughts on Home Renovation Costs



Renovating a home is a major investment, and it’s also one of those things that can be hard to stop once you get going. If you get a new kitchen, for example, it can make adjoining rooms seem outdated, so you may be tempted to expand your project into a multi-room upgrade right then and there.

Our advice in this situation is, if you have the budget, go for it, but if not: it is far easier and more cost-effective to wait and get a proper renovation done than try to quickly follow up one major renovation project with another one on the cheap. First, you may not know everything about the next room or project, even if the previous one went well, so going ahead without having all the information is not recommended. Additionally, if you do run out of funds mid-renovation, it will mean that room will be off-limits to your household for some time, so do your best to plan accordingly and stay on budget.

Before starting any renovation, consider consulting with a professional renovation design company to get a realistic estimate. As professionals, RDD can help identify any potential problems, advise on cost reduction, assist with permits, and ensure the entire project runs smoothly.

Choose RDD for Your Next Renovation Project 

When you choose RDD for your renovation design,  you have the advantage of our decades of construction expertise and professional designs that give you a clear picture and detailed scope for your project. Partner with us to get reliable, beautiful renovation designs that are done right and value engineered for your budget. Contact us today to get started. 

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