Home renovations have always been a costly project. It requires tens of thousands of dollars to bring a noticeable change in the home. Besides, every so often, there are unforeseen scenarios that inflate the cost.
That’s particularly true in 2022 as materials, furnishings, and other renovation elements increase in price. As a result, homeowners often go over the budget.
When that happens, you either have to settle for an incomplete renovation or compromise by getting cheaper materials or services. Either way, it leads to an undesirable outcome.
With that in mind, this guide will go over the different factors that may affect home renovation costs in 2022 and, in the end, determine what you must expect to spend on average.
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Average Home Renovation Cost In 2022
HomeAdvisor says the national average renovation cost is USD$47,911, ranging from USD$17,914 to USD$78,083. Of course, there will be outliers that may go as low as USD$2,000 or as high as USD$200,000. The costs will depend on how you manage the following variables.
Labor Costs
Although you can finish the entire project under a do-it-yourself (DIY) move if you want, homeowners often choose to go the easier route by hiring contractors. These may include electricians, plasterers, and plumbers. Naturally, their hourly rate will directly affect your home renovation costs.
How much it will add to the total cost depends on how many contractors you’re willing to hire. Regardless, experts estimate that labor costs will account for 15-30% of the total renovation costs.
You can reduce labor costs with the right strategy. A guide from the Capital Building site might help in that regard, as it discusses several tips when hiring building contractors.
Remember that the labor costs will vary according to the type and number of contractors you intend to hire. However, you must expect to spend USD$20 to USD$200 per hour for one contractor.
Additionally, labor costs are often inversely proportional to the amount of work you intend to DIY. If you plan to do 50% of the work, for example, you should be able to reduce labor costs by half. It’s also worth noting that labor costs will vary from city to city or state to state.
Material Costs
While you’re not building a new house, renovations still typically require certain materials like lumber and steel, especially when you intend to make considerable changes to the house.
The costs of these materials would naturally add to the total renovation costs.
Material costs are exceptionally high at the moment due to the increase in the price of construction materials in the past few years.
Moreover, certain building materials tend to have a higher price tag than others. Flooring, for example, can be made of tile or wood, with tile being the expensive option. That means you can reduce material costs by opting for cheaper materials.
Regardless, material costs should account for at least 10% of the total renovation costs. So, if you intend to use cheap materials, you can potentially halve that cost.
Square Footage
Many homeowners calculate renovation costs according to the square footage of their houses. The bigger the house, the more expensive its renovation would be.
After all, a bigger house would require more construction materials. Furthermore, it would take contractors more time to cover a larger space, meaning they’d take more hours, which in turn increases the labor costs.
Of course, you wouldn’t have to renovate 100% of the house. Which parts of the house you’ll renovate is entirely up to you. That’s why you must have a plan before the renovation.
With an existing plan, you can take the square footage of all the parts that you intend to renovate. You then multiply that by the cost per square footage, which often varies according to the quality of the materials you want to use. The average cost per square foot is USD$40 or USD$150 for high-end materials.
Furnishings
Furnishings are usually added to a house only to improve aesthetics, though some provide functionality. Nevertheless, it will add to your home renovation costs.
The cost will depend on whether you already have existing furniture pieces or you’re just starting to furnish the house. In the case of the latter, you should expect to spend USD$1,500 in total for basic furnishings or USD$100,000 if you want to make the house more luxurious.
Wrapping Up
One common characteristic of the aforementioned variables is that they are under your control. You can reduce labor costs if you DIY the total cost by only renovating a small area of your home or getting only basic furnishings. Therefore, while it requires a considerable budget, you have at least a level of control over what that budget will be.
