How Much Does A Full Home Renovation Cost?

Name: How Much Does A Home Renovation Cost? | Jacaranda Finance
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Are you planning on making some home improvements? Renovating an entire home is a huge task and the costs involved can be overwhelming.
Last modified: 8th April 2024
Jemima Kelly | 10 mins read

Jemima Kelly

Content Writer

Jemima Kelly is a Content Writer at Jacaranda Finance. She is enthusiastic about accurate and informative content, and holds a Bachelor of Creative and Professional Writing from QUT.

The average cost of a full home renovation in 2022

Renovating a home is something that many Australians have decided and will decide to do in their lifetime. Many choose to invest in improving and renovating their houses to add value to their home and gain a higher return on investment when selling it in the future. At the beginning of 2022, nearly half of Australian homeowners were planning to renovate their homes during the year.

Of the 2,267 homeowners surveyed by Houzz for their 2021-2022 Overview of Home Renovation report, the 49% of recipients with renovation plans budgeted $25,000 on average in 2022 - a 67% jump from $15,000 in 2019. Homeowners with higher-budget renovations planned to spend an average of $138,000 in 2022.

According to Architecture and Design, 50% of all full house renovations in Australia can cost anywhere between $40,000 and $300,000. This is heavily dependent on a variety of factors like geographical location, the size of the home, materials used and many more, which we’ll discuss later.

Average renovation costs in the most expensive states for 2022

State	Cost
VIC	$71,000
NSW	$66,600
QLD	$60,500
ACT	$60,000
National Avg	$63,500

* Average costs sourced via Architecture and Design

How much does it cost to renovate each room?

Even if you’re planning to renovate your entire home, it’s worth outlining the average cost per room. There are many popular home renovations and each room requires different furnishings, appliances, and fittings which can greatly affect the cost.

The following lays out the average cost of each room according to HiPages. Click each link below to jump to each room:

Average renovation costs per room in 2022:

Kitchen: $10,000 - $45,000
Bathroom: $10,000 - $35,000
Living/dining room: $10,000 - $15,000
Master bedroom: $2,000 - $35,000
Outdoor area: $2,000 - $10,000
Home office: $6,000 - $16,000

Kitchen: $10,000 - $45,000

In terms of time and money, kitchen renovations are often considered the most difficult to undertake. Common expenses include purchasing new appliances, replacing old fittings, modifying plumbing and electricals, as well as demolishing existing structures for an open plan space.

Bathroom: $10,000 - $35,000

Similar to kitchen renovations, stripping out existing fittings and purchasing new bathroom fixtures and appliances can be very costly. Tiling is another major expense in this room. According to the tiling store Discount, the cost per square metre can run from $15 to $200.

Living or dining room: $10,000 - $15,000

These communal spaces are some of the most frequented by guests, so keeping these areas up to date is a must for many homeowners. Creating an open plan space through the removal of walls as well as upgrading lights, power points, flooring, furniture, and painting the walls are some of the main expenses involved.

Master bedroom: $2,000 - $35,000

Increasing storage through the installation of a new wardrobe, upgrading lights and powerpoints, as well as painting the walls are some of the costs included in renovating most bedrooms.

One difference between many master bedrooms and other bedrooms in the house is the ensuite. Adding an ensuite to a bedroom could become quite costly, but could be worth the potential increase in the value of your home.

Outdoor area: $2,000 - $10,000

If you’re renovating the interior of your home, having an exterior to match could be the next step for you. Investing in a new lawn, updating your landscaping, and adding a patio or deck are some great additions to up the ante on your home renovations.

Home office: $6,000 - $16,000

Working from home has become a norm across many industries and organisations after the covid lockdowns. According to a survey by Bates Smart (via Savings.com.au), 74% of working Australians that can do their job from home feel that working from home is as or more productive than working in the office.

This has led to many Australians building or renovating a dedicated home office for working-from-home purposes. This endeavour could be costly whether you decide to renovate an existing room in your home or build an entirely new office.

Factors that affect the cost of your home renovation

The cost of renovating your home can depend on a range of factors, with some of the most common ones being:

Size

The size of the space you’re renovating plays a large role in the cost. A small apartment is usually significantly cheaper than remodelling an entire family home, with the costs per square metre averaging $2,000 to $4,000.

Materials

According to CoreLogic’s Cordell Construction Cost Index (CCCI), the national residential construction costs for Quarter 3 of 2022 increased at a record rate of 11.0% in the year to September 2022.

CoreLogic Construction Cost Estimation Manager, John Bennett, said the costings team was continuing to see costs rising in 2022, especially across materials like timber and metal, directly affecting framing and reinforcing.

This price increase could make it tempting to purchase cheaper materials; however, this could be more expensive in the long run, as higher-quality materials typically require less maintenance due to their higher durability.

The extent of the renovations

Small refurbishments such as changing fittings and updating fixtures involve much smaller costs than completely changing the layout of your home. Demolitions, moving electrical outlets, and updating plumbing are some of the more hefty expenses involved in larger renovations.

Renovating could mean adding an extension to your home, which involves its own set of costs depending on your plans. According to Soho, extension costs per m2 in Australia are between $2,000-$4,000.

Location

Renovation costs vary between states and even between cities. Suncorp’s renovation calculator can help you get a better understanding of costs based on where you live.

Labour costs are often one of the biggest costs when it comes to renovating and, depending on where you live, hourly wages can vary. It can be valuable to shop around to ensure you’re making the most of your money.

Contractor

Quotes for renovation costs can vary depending on the contractor, even for the exact same job. Sometimes a contractor with more experience and a good reputation may quote a higher price for your renovation. However, sometimes this can be worth it to ensure your renovation will be cost-effective and efficient.

5 tips to save money on your home renovation

As you can see, a full home renovation can be quite expensive. Here are some tips you could use to save some money along the way.

Get inspiration: Whether it be through Pinterest, family or friends, or even TV shows, having an idea of your goals and how you’re going to approach your renovation could save you from wasting time and money.
Make a detailed plan: Collate a detailed spreadsheet of the specific changes, purchases, and updates that need to be done per room to ensure there are no surprise expenses.
Allow plenty of time: Renovations could take months to finish, and understanding the timeframe, especially when liaising with contractors, could help you in the long run. Quick renovations can mean you’re cutting corners and could lead to costly mistakes.
Do your research: Researching costs of hourly rates, comparing the costs of raw materials, and comparing multiple contractor quotes can ensure you’re getting the most from your money.
DIY: While this generally isn’t recommended for larger jobs that require specialist work, you could save money on smaller home improvements by doing it yourself. Painting is a good example of a DIY project that could help cut down on costs. There are some great home renovation apps that can help you on your DIY journey.

Jacaranda Finance Renovation loans

A major home renovation may come with a hefty price tag, however, it can be a great investment for the future of your home. If you’re looking to renovate and can’t quite muster up the funds or would rather not part with the cost all at once, Jacaranda Finance could give you the financial boost you need and put that paint roller in your hand.

Jacaranda offers fast and flexible renovation loans and home improvement loans for up to $25,000, with manageable repayments spread out over loan terms of up to 48 months. Apply now and you could get started on your home renovation sooner than you thought!

First Published 09/09/2021

Last Updated 09/11/2022

Written by - Jemima Kelly