It's not uncommon for homeowners to seek ways to enhance or transform their properties. Home renovations could include cosmetic updates like flooring, structural or layout changes, energy efficient upgrades, or smart home or modern technology renovations. Landscaping, too. Depending on the improvements you choose, it could be a major purchase that requires planning and budgeting.
No matter what your reason for your home improvement project, here are a few budget friendly tips to help you afford your renovations.
How to budget for home renovations and improvements
Your home’s value can help you determine the scope of your remodeling projects, along with your budget and your location. To add, labor and materials are also costly, and can be more expensive in bigger cities with higher wages and transportation costs.1
It's a good idea to shop around or get project estimates from contractors and professionals. Read reviews and be proactive in your savings for additional costs that may arise due to discovering hidden damage or other unexpected issues. You should also consider identifying your fixed project costs (or costs that will not change throughout the duration of the project). In addition, it could also be beneficial to pinpoint any variable costs (costs that will change) or if the project will be hourly and include materials.
Other tips to consider are:
- Try to find your area’s average cost of the project you’re considering.
- If you're handy, consider completing some projects on your own (like painting) to help save on cost. If you need help, consider hiring a professional—especially for more complicated and intricate jobs..
- Look over your financial options and pay for your home improvements in the least expensive and most efficient way.
Having a budget for your renovations is ... smart. A common renovation guideline is to spend no more than 30% of your home’s value on renovations and projects. Staying within this range many help you remain financially viable. It could also protect against your renovations exceeding your property value. This guideline could be equally important if the potential return on your investment (ROI) is a consideration or influence in your decision to renovate.
How much to consider budgeting for remodeling each room or part of your house2
Here’s a room-by-room breakdown of average costs for a professional remodel, using nationwide data on the median cost of remodeling various rooms of a house.
Keep in mind, depending on the size (or square footage) of your home, project type, materials, home age, finishes, contractor, as well as other budgeting factors, you could spend more or less than these estimates.
- Kitchen remodel: $27,000 for a minor remodel to over $150,000 for a major remodel1
- Bathroom remodel: $42,000
- Deck, porch, or patio replacement or addition: $51, 5000
- Roof replacement, shingles: $32,000
- Roof replacement, metal: $52,000
- Solar power installation: $56,000
- Basement remodel: $52,000
- Garage door replacement: $5,000