App version: 0.1.0

The Average Cost to Renovate Your House: 2022 Guide

The Average Cost to Renovate Your House: 2022 Guide
Kristin Luna
Kristin LunaUpdated November 30, 2022
Share this article:
Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
Renovating your house is a significant financial undertaking. And the costs associated with home renovation can vary wildly. On average, Americans spend $15,000 on a single home remodel project. So how much does it cost to renovate a house? The average price is $47,000, but depending on the size of your home, a remodel could cost between $20,000 and $75,000. Carefully mapping out the potential costs to renovate your home, then working out a project timeline is a good way to stay on track financially. Here’s how to do it.

Average Cost to Renovate a House By Room

The average cost to renovate a house will depend on the square footage of your home, the number of rooms it has, and how extensive your renovation plan is. These are some of the more common home renovation projects and a cost range for each.

Bathroom

The average cost of a bathroom remodel ranges between $3,000 and $25,000, but may cost as much as $55,000. A typical bathroom renovation involves replacing sinks, toilets, fixtures, and flooring. Homeowners with larger budgets might also want to remove an outdated bathtub or replace a plastic stall shower with fresh tile and a glass surround.The final cost you’ll pay depends on details including whether the plumbing needs to be relocated and the electrical rewired, as well as the materials you choose. Fortunately, there are a number of ways to help pay for a bathroom remodel.

Bedroom

The average cost of a bedroom remodel is $10,000 to $15,000.Remodeling a bedroom may be high on your to-do list because you want a comfortable and soothing place to sleep. One of the most common updates for a bedroom is a fresh coat of paint and new bedding. You might also choose to buy all new furniture and window treatments. Another area to focus on is the flooring in your bedroom. This could be a simple carpet replacement or something more ambitious like installing hardwood planks. The scope of the project and quality of the materials will help determine your costs. 

Living Room

The average cost to remodel a living room is $2,500 to $15,000.Renovating a living room is a popular project since it gives guests their first impression of your home. A simple upgrade, which will keep costs on the lower end, might include painting the room a different color, adding some new lighting, and choosing new furniture. You can also install a new floor, change the window treatments, and put in custom shelving. These renovations will quickly add to the price tag.  

Kitchen

The average cost of a kitchen renovation is $25,000 to $40,000.An updated kitchen can be the most expensive portion of a home remodel project. It’s possible to keep the kitchen costs lower if you plan to incorporate some DIY handiwork. However, if you opt for a full package of premium upgrades for a modern kitchen, the cost of your renovation can skyrocket to $75,000 or more. 

Garage

The average cost of a complete garage remodel is$7,000 to $15,000. Remodeling a garage might include replacing garage doors, the roof, windows, and siding, which can add a lot of value to your home. A garage door replacement alone will run you about $3,900. 

Attic

The average cost of an attic remodel is $25,250, and can range from 4,600 to $70,000.Renovating your attic to turn it into a bedroom will add to your living space, but it’s an involved project that requires flooring, electrical wiring, heating, insulation, and new walls, among other things. The size and style of your attic will significantly affect the price. The cost to finish an attic is $30 to $60 per square foot, which includes materials and labor. 

Basement

The average cost of renovating a basement is $12,300 to $33,300.Many homeowners are also turning their basements into bonus rooms that add onto their living space and increase their home’s value. Like an attic remodel, this can be a big job that might include adding flooring, walls, electric, and plumbing. Basement projects tend to range between $100 and $300 per square. Fortunately, there are ways to finance a basement remodel that may help.

Office

The average cost of remodeling a home office is $5,000 to $22,000.If you have an extra room in your house, you may want to convert it into an office. You’ll need to buy office furniture and you may want to paint the walls, add appropriate lighting, and install new flooring. Some budget-friendly home office ideas may make your renovation more affordable.

Exterior/Roof

The national average cost to replace a roof is $8,000. Many homeowners replace their roof when it has a problem like leaks or rotting. However, if your roof is more than 20 years old and shows signs of wear, it’s likely wise to consider replacing it soon to avoid future problems. Fortunately, there are ways to finance a new roof

Average Cost to Renovate a Home By Style 

The style of your house can also affect the average cost to renovate a house. For example, if you own an older home in a historic district, you may have to follow certain ordinances or guidelines when you renovate which could require using pricier materials. And if your home is not a standard shape, and has a more elaborate design, renovations could also be costlier. And, of course, the bigger your home, the more you’ll typically pay to renovate it.

What Can Influence the Costs of Renovating a House? 

Many factors go into the cost to renovate a home; these are some of the biggest:

Condition 

The condition of your house will help dictate the underlying costs of your renovation project. The older your home is, the more work it may need, which can add extra construction costs. Big-ticket items like installing central air conditioning, putting on a new roof, and replacing windows can drive up the price. 

Location 

The region of the country you live in also will factor into the average cost to renovate a house. For instance, remodeling a home in a big city can cost up to 40 percent more than renovating a house in a rural area. 

Material

Your budget could dictate the materials you choose for your home renovation projects. Options like top-of-the-line countertops, premium appliances, and high-end fixtures will drive up the price of your project. However, they also might add to the resale value of your home down the line, so weigh the pros and cons before making any big financial decisions. 

Labor

Labor costs can fluctuate wildly depending on where you live and how extensive the project is. If you have a labor-intensive job like removing an old roof before adding a new one, for example, the total price will be higher. One way to keep the cost to renovate a home within a range you can afford is to consider doing some of the smaller projects yourself.

Permits

Permits for large renovation projects can cost between $400 and $1,800. Check with your municipal office about the permits that may be required for your project to make sure you get what you need. 

Financing Options for Renovating a House 

If you’re looking into financing your renovation, you might be considering a home equity line of credit, or taking out a cash-out refinance or personal loan to renovate your home. Here’s what to know about each option.

HELOC 

A home equity line of credit (HELOC) allows you to borrow against your home’s equity up to an approved limit. The interest rate is variable. Instead of receiving a lump sum, you can borrow HELOC funds as needed during what’s called the draw period, which typically lasts up to 10 years. When the draw period ends, the repayment period begins, which can be as many as 30 years. However, keep in mind that if you can’t pay off what you owe, the lender could foreclose on your house.

Cash-out Refinance 

A cash-out refinance allows you to refinance your mortgage while borrowing money at the same time, based on the equity you have in your home. The cash-out refinance process entails borrowing a new mortgage for a larger amount than the existing mortgage; you then receive the difference in cash for your renovation. Lenders often limit cash-out refinances to 80 percent of the equity a borrower has in their home. You’ll pay closing costs and you will need to have your home appraised.

Personal Loan 

Taking out a personal loan for remodeling is a common way to fund a renovation project. With a personal loan, a bank, online lender, or credit union lends you a lump sum that you repay with interest in installments over time. The higher your credit score, the lower the interest rate you may get. Once you’re approved for a personal loan, you may expect to receive funds quickly, typically within one to five days. You may want to research the different personal loan types before you apply. 

Personal Loans for Home Improvement 

If you’re considering a personal loan for your home renovation project, Lantern by SoFi can help. By filling out one simple form, you can easily and conveniently compare personal loans and their rates and terms from multiple lenders in our marketplace to help find the one that’s best for your renovation needs.Compare your rates today with Lantern!

Frequently Asked Questions

How much does it cost to renovate a house?
How can you cover home renovation costs?
How soon can you get financing to renovate a house?
iStock/10255185_880
LCPL0622017

About the Author

Kristin Luna

Kristin Luna

Kristin Luna is a Tennessee-based journalist with 20 years of writing and editing experience. She has contributed to such publications as Southern Living, This Old House, Real Simple, Parade, Conde Nast Traveler, Travel + Leisure, and various other titles. With her spouse and fellow journalist, she runs a public art nonprofit and also purchases and rehabs older model homes.
Share this article: