The Average Home Remodel Cost and Different Ways to Pay for It

Published On: September 16, 20190 Comments on The Average Home Remodel Cost and Different Ways to Pay for ItTags: , , Last Updated: February 12, 20245.2 min read

In 2017, US homeowners and landlords spent $424 billion to improve their properties. That’s a whopping 50% increase from 2010. What’s more, a Trulia survey found that nine in 10 homeowners also plan to remodel their home at one point. Of these folks, 39% plan to start their project within the next 12 months. If you’re one of these people, then you need to prepare your budget, as remodeling can come with huge costs. For instance, homeowners spent an average of $9,081 on home improvements in 2018 alone.

The Average Home Remodel Cost and Different Ways to Pay for It

That’s why it’s best to first know the average home remodel cost and the factors that influence it. This way, you can determine how much you can afford and how you can pay for such expenses. Ready to find out how much your bill may be and how you can have enough funds when remodeling an old house on a budget? Then let’s dive right into it!

How Much the Average Home Remodel Cost Is

HomeAdvisor puts the national average of remodeling multiple rooms at $46,155. You could, however, pay as low as $3,700 for a low-end remodel, and as high as $150,000 for a high-end project.

Breaking Down Home Remodel Costs

Aside from “quality”, the number of rooms and their size also plays a huge role in remodeling costs. The exact room you want to remodel will also affect your final bill. Your home’s location is another factor — states with the highest cost of living also have high labor costs. If you’re going to hire a contractor for the remodel, then be sure to consider these variables too.

Average Remodeling Cost Depending on the Room

$50,000 is a lot of money, and most homeowners can’t afford to shell out that kind of amount in one go. That’s why it’s a good idea to know how much it would cost to remodel each room in your home. This way, you can figure out which areas you can afford to start with (and prioritize).


In 2017, 81% of remodelers said that they took on a bathroom remodeling project. That makes this room the most common room to have undergone improvements that year. One reason it has overtaken kitchen remodeling projects is the potentially lower cost. As HomeAdvisor pointed out, the average cost to remodel a bathroom is between $6,000 and $14,000. Thumbtack’s estimate is close to HomeAdvisor’s higher-end, ranging from $12,500 to $15,000.

The Average Home Remodel Cost and Different Ways to Pay for It - bathroom


The kitchen can be among the most expensive areas of a house to remodel — with the highest cost being a whopping $123,000. That’s according to Home Depot, which also reported that a minor kitchen remodel can cost $20,800. A less upscale, yet still major remodel can rack up to $62,200 in costs. HomeAdvisor’s report, however, says that the average cost for a kitchen remodel is about $20,500. The range is usually between $4,500 and $49,000 though.


Fixr places the national average bedroom remodeling cost at $7,880. With this, you can get new windows, carpeting, heaters, door, and insulation. It also includes updating lighting and old wiring and finishing walls and ceilings.

Living Room

Homewyse estimates a living room remodel to cost you anywhere from $6,705 to $7,823 for both materials and labor. Expenses for materials alone can range from $3,501 to $4,085.

Your Options to Finance a Home Remodeling Project

You have several methods to finance your remodeling project, depending on how big it is. Let’s take a closer look at each of them.

Cash and Liquid Assets

Cash is the best way to fund your home improvement projects, as this allows you to avoid interest charges. If you pay contractors in cash, they may even give you a discount. This method works best if you have saved up a lot or have almost-mature saving bonds. Just make sure that you have enough to spare, and that your remodel won’t deplete your savings.

Home Equity Loans

If you’ve built up enough equity in your home, then you may be able to take out a loan against it. In this case, you’ll secure a “home equity loan“, one of the most common ways to fund home improvement projects. These loans often have lower interest rates than credit cards and personal loans. If you have considerable equity, you can borrow larger amounts for bigger projects. Be careful when taking out a home equity loan though, as this reduces the sum you’ll get when you sell off your house. In short, the more you borrow against it, the “smaller” the portion of your house you’ll truly own.

Personal Loans

Personal loans can also help you acquire the funds you need for your home remodeling project. The best thing about these loans is that you can use them for almost any type of home improvement. They can also supplement your cash funds or if you lack equity on your home.

Home Improvement Program (HIP) Loans

Check your county if you qualify for a Home Improvement Program (“HIP”) loan. These are loans designed to preserve the local housing stock and are nearly “free” funds. But because they’re almost free, prepare yourself for some serious red-taping. You’d need to meet a strict deadline to complete the project and you can’t use the funds for all improvements. Also, officials will closely supervise the project.

Zero-Interest Credit Cards

You can also buy the materials you need or pay contractors using 0% interest credit cards. Be sure they are true zero-interest cards, or you run the risk of paying immense interest rates. Also, ask your credit card issuer if they have “buy now, pay later” deals. These will allow you to pay off bills now but postpone the payment without interest charges.

Remodel Your Home Now Without Straining Your Budget

There you have it, the ultimate guide on the average home remodel cost — and how you can finance it. By knowing the breakdown of these costs, you can decide which room to improve first. You can also determine whether your savings and assets are enough, or if you need a loan to expand your funds.

Looking for home improvement ideas and projects that you can manage on your own? Then check out the huge collection of how-to guides we have in our site’s Home Improvement section!

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