Most Expensive House Renovation Projects: What Costs the Most?
Jun, 20 2025
If you’re thinking about remodeling, it’s smart to know what’s going to eat up the bulk of your budget. Spoiler alert: it’s usually the kitchen or the bathroom that drains your wallet the fastest. You can drop twenty grand on a bathroom refresh without even changing the floorplan. Kitchens? That’s where people regularly spend more than they paid for their first car—sometimes a lot more.
It’s not just about fancy cabinets and shiny countertops, though. The price balloons fast because of the sheer number of trades involved: plumbers, electricians, tilers, and cabinet makers all need their slice. Plus, moving stuff around—like putting a sink where the fridge used to be—means tearing into walls and floors. That’s where hidden problems pop up, and budgets start to spiral.
- Where the Money Goes: Kitchens and Bathrooms
- Why Kitchens Cost So Much
- Big Surprise: Hidden Costs Behind the Walls
- Factors That Drive Up Bathroom Renovation Bills
- What About Other Spaces?
- How to Budget Smart and Save Money
Where the Money Goes: Kitchens and Bathrooms
Most people are shocked by how fast renovation costs can rise, and it nearly always boils down to one thing: the kitchen or bathroom. These spaces are the heart of house renovation budgets because they combine so many expensive elements—plumbing, electrical, fixtures, custom cabinetry, and tile, just to name a few. Basic numbers back it up. According to the 2024 Houzz & Home survey, the average kitchen renovation in the U.S. cost $24,000, while major remodels (think gutting and moving things around) easily tip over $40,000. Major bathroom remodels came in at around $15,000 to $20,000, but high-end jobs can go north of $50,000 if you have a taste for luxury faucets and rainfall showers.
The reasons for these numbers are pretty clear. Kitchens and bathrooms both need plumbing and wiring, which cost way more than just painting a bedroom or laying new carpet. Appliances, light fixtures, countertops, cabinets, and those little finishing touches (like pulls and handles) add up fast—even before you get into relocating walls or fixing old problems behind them.
| Room | Average Remodel Cost |
|---|---|
| Kitchen (Minor) | $14,000 |
| Kitchen (Major) | $40,000+ |
| Bathroom (Full) | $15,000 |
| Bathroom (Luxury) | $50,000+ |
Labor is a huge chunk of the bill. You’ll need licenced trades—plumbers and electricians don’t come cheap, and inspectors insist things are done by the book. Tilework or custom cabinetry means skilled hands, too. Cutting corners in these areas can cause big headaches later, like leaks, mold, or fires. And let’s not forget: kitchens and baths drive resale value more than any other space in your house, so people tend to spend more here, hoping for a better return if they sell down the line.
- Plumbing upgrades for kitchen/bath can easily top $5,000.
- A custom cabinet package can run $10,000 or more.
- Premium countertops (like quartz) can add $4,000+ in just one room.
- High-end appliances can eat $10,000 quicker than you’d think.
If your goal is to be budget-conscious, focus on sticking to the layout you have. The second you start moving plumbing or knocking down walls, you open a can of worms—and your wallet better be ready.
Why Kitchens Cost So Much
Kitchens chew through budgets for a bunch of reasons—and it’s not just about splurging on high-end gadgets. First, this is the most complicated room in any house when it comes to trades. You’ve got plumbing, electrical, carpentry, tiling, flooring, and sometimes even HVAC work all happening at once. Each pro charges their own rate, and their time adds up quick.
The other thing about kitchen remodels is the materials. Cabinets alone can eat up 25-40% of your whole kitchen budget, especially if you’re going custom. Countertops get pricey fast, especially if you want quartz or natural stone. Add in stylish faucets, energy-efficient appliances, modern lighting, and the tab climbs before you even get to the backsplash or flooring.
Cost can also spike if you start moving things around. Changing the layout—say, moving a sink or a stove—means rerouting pipes and wires. That’s always more expensive than keeping things in the same spot. Plus, you might run into things behind the walls that no one budgeted for, like old wiring or bad plumbing from a past job.
- Demolition and prep work nearly always reveal surprises—think water damage or old wiring that needs replacing.
- Permits add up, especially if you’re changing the layout or moving gas lines.
- Labor costs are higher in kitchens because there’s so much fine work in a small space.
| Renovation Level | Approximate Cost |
|---|---|
| Minor Remodel | $15,000 - $25,000 |
| Mid-range Remodel | $26,000 - $50,000 |
| High-end Remodel | $60,000 - $120,000+ |
If you want to save money, keep the core layout the same, reface cabinets instead of replacing, and leave the plumbing where it is. Swapping out finishes can freshen up the space without the massive price tag that comes from moving walls or systems.
Big Surprise: Hidden Costs Behind the Walls
Ever watched a home renovation show where everything’s going fine—until someone rips open a wall? Suddenly, the budget doubles. Hidden costs are what make house renovation such a gamble. These surprises can be anything from old, faulty wiring to rotting pipes or even mold that’s been quietly spreading for years.
A lot of the time, nobody really knows what’s going on inside your walls until the demo starts. In houses built before 1978, there’s a good chance of finding asbestos insulation or lead pipes. Dealing with those isn’t just gross—it’s expensive. You can’t DIY asbestos removal, and most states require certified pros, which means costs quickly climb. The National Association of Home Builders found that about 20% of kitchen and bath remodels go over budget mostly due to unexpected electrical, plumbing, or structural fixes. Here’s a look at typical hidden costs you might hit:
- Outdated electrical wiring: A full rewire can cost $7,000 to $15,000 depending on the size of your home.
- Plumbing nightmares: Corroded pipes or old cast iron stacks mean you might spend $4,000-$10,000 just to avoid a future leak disaster.
- Mold or rot: Remediation and fixing the damage can easily be a few grand, sometimes even more if it's widespread.
- Hidden structural repairs: Damaged framing, termite repair, or foundation fixes often run $5,000 to $20,000.
Here’s a quick breakdown with rough national averages:
| Hidden Issue | Typical Extra Cost |
|---|---|
| Electrical Rewire | $7,000 - $15,000 |
| Major Plumbing Repairs | $4,000 - $10,000 |
| Mold Removal | $2,500 - $6,000 |
| Asbestos/Lead Removal | $3,000 - $8,000 |
| Structural Repairs | $5,000 - $20,000 |
If you’re planning a remodel, keep a buffer—usually 15-20% of your total budget—for these headaches. Skip this, and you’re almost guaranteed some nasty surprises. Having a pro do a full inspection before you start swinging hammers saves time, money, and sanity.
Factors That Drive Up Bathroom Renovation Bills
This is the part where budgets can get blown up in weird and unexpected ways. A typical bathroom renovation might start out looking simple, but the costs stack up for some pretty specific reasons. First, bathrooms pack a lot of moving parts into a tiny space—plumbing, electrical, waterproofing, tiling, ventilation, and more. If you’re changing the layout, it means calling in all kinds of pros, and nobody works for free. That alone can chew through a big part of what you’ve set aside.
Waterproofing is an area most people don’t think about—until it fails. Home inspectors say old or poorly done waterproofing is one of the top reasons bathrooms need a full gut job, as even small leaks can mean ripping out everything down to the studs. Hiring someone who’s certified to do waterproofing right isn’t cheap, but skimping here can lead to much bigger costs down the road.
One sneaky budget killer? Old or DIY wiring that isn’t up to code. If your house is older than your favorite pair of jeans, the electrical will almost always need updating to handle modern lighting, power-hungry hair dryers, and heated floors. New wiring, extra outlets, and upgraded panels make a bigger dent than most folks expect.
Another thing to factor in is tile. Bathrooms eat up a surprising amount of labor thanks to all the precise cuts and waterproofing needed, especially with fancy patterns or mosaic details. The tile itself can range from cheap ceramic to luxury stone, and prices climb fast. Some people don’t realize that just swapping out an old tub for a walk-in shower means custom glass, drains, tiling, and waterproofing tricks—all of which add to the bill.
- Hidden water damage: Old leaks from showers or toilets often mean repairs behind the scenes, the kind you can’t skip.
- Ventilation upgrades: Installing a proper vent fan with ductwork to the outside is often required by code now. Skipping this means you'll deal with mold later.
- Permit and inspection fees: The more you move plumbing and electrical, the more likely you need permits. Cities don’t hand those out for free.
When you add it all up, it’s easy to see why making a house renovation budget for a bathroom runs higher than you’d expect. The trick is to set aside at least 20% of your budget for surprises, because they almost always pop up once you open the walls.
What About Other Spaces?
Kitchens and bathrooms get most of the attention, but other areas in your house can still pack a punch on your bank account. Take basements, for example. Turning a damp, unfinished basement into usable living space can set you back between $20,000 and $70,000 depending on what you want—home theater, in-law suite, or just a playroom. If you run into water issues, add another chunk to that price tag for drainage and waterproofing.
Attic conversions are another sneaky cost center. Insulating, putting in windows, and making the space meet code for ceiling height and emergency exits can cost you as much as a mid-range bathroom remodel. And don’t forget HVAC: an attic or basement usually needs extra heating and cooling, which isn’t cheap.
Living rooms and bedrooms are usually less tricky, but not always low-cost. If you’re knocking down walls to make an open plan or add a closet, expect to pay more for structural work. Windows, floors, and doors also add up fast, especially if you go for energy-efficient upgrades or custom sizes.
Here’s a quick look at what you might expect for common home improvement projects outside of kitchens and baths:
| Renovation Project | Typical Cost Range (USD) |
|---|---|
| Basement Finish/Remodel | $20,000 - $70,000 |
| Attic Conversion | $25,000 - $60,000 |
| Living Room Remodel | $7,000 - $25,000 |
| Bedroom Remodel | $5,000 - $20,000 |
| New Flooring (Whole House) | $10,000 - $30,000 |
A good rule of thumb: the more you change the structure or major systems, the faster costs add up. Cosmetic updates like painting or swapping out light fixtures are usually way cheaper than anything involving demolishing, plumbing, or wiring. If you’re trying to stretch your house renovation budget, these are the spaces to tackle last or keep simple.
How to Budget Smart and Save Money
When tackling a big home renovation, it’s way too easy to blow past your budget. The best move is to go in with your eyes wide open and a plan that lets you stick to your numbers—no matter how tempting those luxury upgrades are.
Start by knowing the baseline figures for popular projects. For example, as of early 2025, the average full kitchen remodel costs between $25,000 and $60,000 in the U.S., while bathrooms usually range from $12,000 to $30,000. Labor usually makes up about 30% of that total, while materials eat up the rest.
Want to keep those numbers in check? Here’s what works:
- house renovation projects benefit from clear priorities. Make a list of must-haves versus nice-to-haves before you even call a contractor.
- Always budget an extra 15-20% on top for surprises. Almost half of major renovations go over the original forecast, often thanks to hidden issues behind walls or under floors.
- Buy materials in advance if possible. You’re less likely to face ‘hurry-up’ pricing or shortages. Buying your own tile or hardware can sometimes save a bundle—just check with your contractor first.
- Don’t knock down walls unless you have to. Changing layouts skyrockets costs because of the extra trades involved.
- Skip custom options where you can: Prefab cabinets, vanities, and fixtures usually look great for less.
- Minimize changes mid-project—they always cost more than you think, and slow everything down.
For quick reference, check out average cost splits based on 2024-2025 data:
| Project Area | Average Cost (USD) | % Labor | % Materials |
|---|---|---|---|
| Kitchen Remodel | $40,000 | 32% | 68% |
| Bathroom Remodel | $18,000 | 29% | 71% |
| Basement Finish | $28,000 | 30% | 70% |
A final tip: Collect at least three itemized bids before you hire anyone. Sometimes the biggest difference isn’t just in the price tag, but in what’s actually included. You don’t want a cheap quote that skips things you’ll end up having to pay for later.