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Average Cost of a Home Renovation (2022)

  • June 17, 2022
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Home renovations are more popular than ever, as people are spending more time at home and thinking about how to make their living spaces work for them.

The price tag for a typical home remodel can be in the tens of thousands of dollars, but rising home values have offered homeowners more opportunities to afford those costs. According to mortgage technology and data provider Black Knight, the average homeowner gained $48,000 in tappable equity in 2021, a 35% increase from 2020. That could be helping to drive the popularity of renovations, as homeowners often draw on home equity loans or lines of credit (HELOC) to finance renovation projects. 

While homeowners have more equity to help pay for the work, costs have also gone up, driven by increased labor costs and supply chain issues affecting building materials.

Whether you’re using a home equity loan, home renovation loan, or your own savings to update your house, it’s important to estimate costs upfront before you dive in. 

How Much Does It Cost to Renovate a House?

Home renovations can involve anything from repainting kitchen cabinets to refinishing hardwood floors to replacing old windows with new ones. Even small changes, such as painting a room or replacing light fixtures, can make a big difference to the look and feel of a room. 

While some homeowners remodel for their own aesthetic enjoyment, others choose to renovate to increase the resale value of their home. Renovating bathrooms and kitchens tend to have the best return on investment, says Allie Weiss

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