How Much Does Renovation Cost? [2024]

With property prices always rising, many home buyers today are purchasing "renovator's dream" houses to cut costs, or carrying out renovations to add to their home's value. But with rising renovation costs too, is it still worth renovating?

Read this comparison to see how renovation costs have changed from 2010 to 2022 and how much renovations cost today.

• Rising renovation costs comparison
• Renovation costs 2010
• Renovation costs 2012
• Renovation costs 2016
• Renovation costs 2022
• Why are renovation costs rising?
• Are renovations worth it?
• Financing your renovation
• Saving money on renovations 

Rising renovation costs comparison

For an idea of how renovation costs have risen over the past decade, these are average prices for some of the most common home renovation projects in Australia in different years.

	2012	2016	2022
Kitchen renovation	$12,000 - $16,000	$22,000 - $34,000	$25,000 - $50,000
Bathroom renovation (6m2)	$9,000 - $12,000	$15,000 - $25,000	$15,000 - $30,000
Bedroom extension (12m2)	$18,000 - $24,000	$36,000	$35,000 - $100,000
Deck or patio (9m2)	$1,620 - $8,000	$1,800 - $8,150	$1,800 - $9,000

 

These are average costs that vary depending on the standard and complexity of the project and materials used. For a more detailed look, see the following breakdown of renovation costs by year.

Renovation costs 2010

According to forums and articles published in 2010, you could expect to pay:

• $7,000 for an L-shaped kitchen renovation with polyurethane doors and a granite benchtop.
• $16,000 for a higher-end kitchen with a Caesarstone benchtop, glass splashbacks and 24 cabinets.
• The average cost of a bathroom renovation was $5,800. A large bathroom renovation with high-end fittings cost $16,000.
• A bathroom/laundry renovation cost $15,000, including floor to ceiling tiling and all inclusions.
• $3,139 to paint the exterior of your home.
• The average cost of a home extension in 2010 was $69,873.

Renovation costs 2012

Two years later, the average price range of renovations in 2012 was:

• $12,000 to $16,000 for an average-sized kitchen.
• $9,000 to $12,000 for a 6-square-metre bathroom renovation.
• $18,000 to $24,000 for a 12-square-metre bedroom extension. 
• $1,620 to $8,000 for a 9-square-metre deck or patio.

Renovation costs 2016

In 2016, the average cost of renovations was:

• $21,356 to build a kitchen. That figure includes less expensive budget kitchens that start at around $10,000 up to luxury kitchens that cost as much as $34,000.
• $15,000 to $25,000 for the average bathroom renovation.
• $36,000 to $90,000 to build an extension (shell only), from 12 to 30 square metres.
• $1,800 to $8,150 to build a 9-square-metre deck or patio, depending on the material. Costs per square metre range from $200 per m2 for treated pine decking, $320 per m2 for hardwood decking or $350 per m2 for composite decking.

Renovation costs 2022

The trend of rising renovation costs has continued in the past few years, with many renovations now costing around twice as much on average as they did a decade ago. These include:

• Kitchen renovations cost from $25,000 to $50,000 in 2022 (compared to $12,000 to $16,000 in 2012).
• Bathroom renovations cost $15,000 to $30,000 for a 6-square-metre bathroom ($9,000 to $12,000 in 2012).
• A 12-square-metre bedroom extension costs $35,000 to $100,000 in 2022 ($18,000 to $24,000 in 2012).
• A 9-square-metre deck or patio costs from $1,800 to $9,000, depending on the material ($1,620 to $8,000 in 2012).
• Large home renovation projects can cost $100,000 to $300,000 or more, depending on the scale of the work and quality of materials.

Hiring renovation builders costs $50 to $85 per hour, depending on your location and the job in question.

Why are renovation costs rising?

The significant rise in renovation costs is about more than inflation. A shortage of labour and materials combined with the high demand for renovations has put intense pressure on the construction industry, leading to a record spike in building and renovation costs that isn't expected to ease any time soon.

Even as the increasing cost of renovations puts them out of many people's price range, Australians continue to spend more overall on renovations each year – rising from $7.7 billion in 2016 to $9.2 billion in 2020 and $12.3 billion in 2021, according to Australian Bureau of Statistics figures.

Renovation projects undertaken during the COVID-19 pandemic were supported by the federal government's HomeBuilder scheme that provided $15,000 to $25,000 to assist with the cost of major renovations.

Are renovations worth it? 

House extensions and major renovations are expensive, but they also increase the value of your home. The cost and inconvenience of having renovations done or having an extension added to your home are also less compared to the alternative of finding a new place to live, selling your home and relocating along with all of your belongings.

If you're thinking about renovating to add value to your home, you need to plan your project with care. Some renovations – for example, installing a high-end kitchen in an average home – may be more expensive than the value they add to your home. In general, renovations shouldn't cost more than 5 to 10 per cent of the value of your home. In this range, you can expect to profit from your renovations.

You'll have to do your homework to find out how much your home extension or renovations will add to the value of your home. One good way to find out is to visit real estate agents in your area and compare the prices of homes with two, three and four bedrooms. Then get quotes from home extension builders to find out how much your extension will cost.

Financing your renovation

To afford the rising cost of renovations, many Australians are borrowing money against the increased price of their home to finance their home improvement projects. There are various ways to do this, including:

• Refinance your mortgage
• Establish an offset account
• Take out a construction loan
• Get a home equity loan
• Establish a line of credit 

In many cases, a renovation loan won't raise your existing monthly payments substantially. For example, you can restructure your mortgage to pay slightly more, but over a longer period of time.

Read more: How to finance your renovation  

Saving money on renovations

You may not have to pay top dollar on your renovations or home extension. You could save on renovation costs by:

• Becoming an owner-builder to save on construction costs
• Purchasing a flat pack kitchen and doing much of your kitchen renovation yourself
• Giving your bathroom a makeover instead of paying for a full bathroom renovation
• Choosing patio awnings instead of spending the money on a patio enclosure

If you're renovating your kitchen, get quotes from several kitchen builders and ask them for costings for different materials. Remember not to over-capitalise on your kitchen. Not everyone wants granite benchtops, for instance. A granite benchtop costs far more than a laminate benchtop. Over time, it can become stained and scratched just like laminate.  

Bathrooms don't have to be all-or-nothing renovations. You may be able to clean and regrout your tiles, paint the bathroom and add new light fittings. You can even add or enlarge a window or add a skylight. If your bathtub and basin look dingy, you can replace them or have them resurfaced at a fraction of the price of buying a new bathtub and basin.  

The rise in cost of renovations and extensions can't be denied. However, when faced with the decision, they can be worth the extra cost. Renovations and extensions add value to your home and can be less expensive than selling and moving to a larger, more modern property.

*Costs and prices in this article are indicative and should only be used as a guide. They also vary locally and are subject to market forces.