HOW MUCH DOES A HOME RENOVATION COST IN 2025?
Thinking about giving your home a glow-up? Whether you’re sprucing up a tired kitchen, adding a dreamy new bathroom, or giving your entire house a much-needed facelift, a renovation can completely transform not just your space, but your lifestyle. It’s also a savvy move to boost your property’s value (hello, equity!) or attract top-notch tenants if you’re a landlord.
But before you start pinning Pinterest inspo and creating the ultimate vision board, let’s tackle the big question: “How much does it actually cost to renovate in 2025?”
We’ve done the homework, crunched the numbers, and pulled together a clear breakdown of renovation costs across Australia - so you can plan your dream project with confidence (and avoid any nasty budget blowouts).
WHAT’S THE DAMAGE? AVERAGE COSTS OF A HOME RENOVATIOn
Alright, let’s talk dollars and sense (see what we did there?). The cost of a renovation in Australia can vary wildly depending on how big you’re going, how luxe you’re feeling, and how much unexpected drama your house decides to throw at you. One of the most common ways to estimate building costs is by calculating it per square metre - that is, the total floor space you’re planning to renovate (inside and out). Across the industry, this is always given as a range, thanks to variations in finishes, materials, and design specs. From budget-friendly facelifts to full-blown, call-in-the-architect transformations, here’s a ballpark of what you can expect to spend:
AVERAGE COST
From our real reno experience, combined with the numbers from the construction industry, an average good quality home reno costs between A$3000-$5000 per sqm.
LOW COST
This number can drop to A$2000-3000 per sqm for a high-volume builder who constructs lots of the same type of basic homes with standard specifications/finishes. In fact, we were able to push that even lower, to well under A$1000 per sqm for our first two flipping projects. That’s because we chose flat-packed kitchens and low-end items wherever possible, which is what you do when ‘renovating for profit.’ But some of those choices may not be what you would want in your forever home.
HIGH COST
The cost per sqm can also increase to A$5000-$7000+ for high-end homes with high-end finishes. The sky is the limit at this end of the spectrum.
At this stage, we can only talk ballpark figures because there are just too many variables. Your level of fit-out, design choices, and site conditions will all impact the final cost. The only way to get an accurate reno budget is to go through the quoting process (which we cover in Reno School). But in the meantime, let’s that a look at the factors that affect renovation costs.
WHAT IMPACTS Renovation CostS?
Renovation prices aren’t one-size-fits-all… which makes writing an article like this tricky! It’s really a ‘how long is a piece of builder’s string’ scenario! What you spend depends on everything from your postcode to your Pinterest board dreams. Here’s what really moves the needle when it comes to reno budgets:
1. Location, Location, Location
Where you live seriously affects your renovation costs. In Sydney and Melbourne, tradie rates and material costs can hit the ceiling, whereas regional areas often come with more affordable labour (but sometimes trickier access to materials). If you’re renovating in a remote area, factor in transport costs - because that dreamy marble benchtop isn’t going to hike itself up the mountain.
Hot tip: If you’re in a high-cost area, get multiple quotes and consider sourcing materials from a mix of local and online suppliers to ensure you’re getting the best bang for your buck.
2. Size & Scope – How Big Are We Talking?
It’s simple: more space = more spend. Knocking down walls, adding an ensuite, or completely reworking a floor plan? That’s when the big dollars start rolling in. If you’re just refreshing what’s already there (think paint, fixtures, and fresh tiles), you’ll be in safer budget territory.
Reality check: Every square metre of work adds up - not just in materials, but also in labour costs. If you’re extending or moving walls, get ready for engineering reports, council permits, and unexpected ‘oops, there’s plumbing here’ moments.
3. Champagne Tastes vs. Smart Swaps
Ahh, the Pinterest effect - where we all fall in love with stunning natural stone benchtops, handmade zellige tiles, and custom cabinetry… until the quotes come in. If you’re happy to splash the cash, go for it! But if you need to keep things realistic, there are plenty of budget-friendly lookalikes that can still deliver serious style.
Benchtops: Love marble? Engineered stone gives you the look without the maintenance or the price tag.
Tiles: Handmade tiles are stunning but can be pricey - kitkat tiles or terrazzo-look porcelain can be fab alternatives.
Cabinetry: Custom joinery is amazing, but if your budget’s stretched, flat-pack with upgraded handles can be a game-changer.
Smart spend tip: Save on areas that aren’t ‘touchpoints’ (like laundry cabinetry) and invest in the high-use, high-visibility zones (like your kitchen and bathrooms).
4. Labour Costs – The Tradie Factor
You can pick all the gorgeous tiles and benchtops you like, but nothing happens without skilled tradies making the magic real. And magic doesn’t come cheap!
Electricians, plumbers, and carpenters typically charge between $50 to $150 per hour, depending on their experience and location. If your project requires structural work, expect even higher costs for engineers and builders. The more specialists involved, the longer your renovation timeline - and the bigger the budget blowout.
5. Unplanned Surprises – The ‘Uh Oh’ Factor
Renovations love a plot twist! Just when you think you’re on track, BAM - you discover asbestos, termites, dodgy plumbing, or wiring straight out of the 1950s.
If you need to rewire an old house, be prepared to add at least $5K–$15K to your budget. If asbestos is lurking behind those walls, professional removal starts at around $3K but can quickly climb depending on how much needs to go. Structural repairs are the ultimate wild card, with costs varying dramatically depending on the extent of the damage.
Reality check: A contingency budget of 10–20% is a must-have. If nothing goes wrong? Amazing! That extra cash can go toward that statement pendant light or freestanding bath you’ve been eyeing instead.
Source: Canstar
Breakdown of Costs by Renovation Type
Ready to dive into the nitty-gritty of reno costs? Don’t worry, we’ve done the hard yards for you! Based on the latest figures from hipages, here’s a breakdown of what you can expect to spend on the most popular home upgrades in Australia. Whether you replacing your kitchen, transforming your bathroom, or giving your outdoor space a glow-up, we've got the numbers to help you budget like a boss. So, let’s see how far your reno dollars can stretch!
Kitchen Renovations
Cost Range: $20,000–$30,000++
A standard kitchen renovation typically falls within this range. This may include updating cabinetry, benchtops, and appliances. But, like any renovation, the cost of renovating your kitchen can vary hugely, depending on the size, choice of products and finishes and your geographical location.
Would you believe we renovated an entire kitchen for under $10k using paint? Yep, check out the transformation!
Bathroom Renovations
Cost Range: $15,000–$30,000++
A bathroom renovation generally costs between $15,000 and $30,000, depending on factors like size, materials, and fixtures. If you’re wondering what you’ll get for your money, we’ve broken down some real-life budgets in this blog to help you visualise it. Or if you’re considering a quick and easy bathroom refresh on a shoestring budget, see how we transformed this bathroom for under $5k!
Living Room and Bedroom Updates
Cost Range: $4,000–$6,000 per room
Updating living rooms and bedrooms can be more affordable, focusing on elements like paint, flooring, lighting, and built-in storage. Never underestimate the power of paint - it’s one of the easiest and most budget-friendly ways to completely transform a space!
Outdoor Areas
Cost Range: $4,000–$12,000+
Outdoor renovations - whether it’s a garden makeover, adding a deck, or revamping your alfresco space - typically range from $4,000 to $12,000, depending on the scope of the project.
Want a budget-friendly transformation? Laying fresh turf is an easy DIY option that instantly makes your space look lush and inviting.
Please note that these figures from our friends at hipages are approximate and can vary based on factors like location, materials, and the complexity of the renovation. It's advisable to consult with professionals and obtain multiple quotes to get a more accurate estimate for your specific project.
Tips for Budget-Friendly Renovations
Renovating on a budget doesn’t mean sacrificing style or quality. With a bit of planning, savvy shopping, and creative thinking, you can transform your space without breaking the bank. Here are a few easy ways to make every dollar count:
1. Plan, Plan, Plan
Good planning is the key to staying on budget. Start by listing your must-haves versus nice-to-haves and prioritise accordingly. Stick to your budget, allowing a little wiggle room for unexpected surprises. Remember, the more organised you are, the fewer costly mistakes you’ll make along the way.
2. Hire The Right Tradies
Hiring skilled and reliable tradies is a game-changer for any reno. Use platforms like hipages to find trusted professionals within your budget. Don’t forget to check reviews and get multiple quotes to ensure you're getting the best value.
3. Shop Smart
A stunning renovation doesn’t have to come with a heart-stopping price tag! Being a savvy shopper means knowing where and when to buy, so you can stretch your budget further without compromising on style.
Want to save big all year round? Don’t wait for the next sale - get yourself a Three Birds Dream Discount Card! This little gem gives you exclusive deals on appliances, furniture, homewares and more - handpicked by us to help you achieve your dream reno without the splurge.
Why pay full price when you can shop smart and save big? Check it out and start scoring those reno bargains today!
4. Reuse & Recycle
Not every reno calls for a total rip-out-and-replace job. Sometimes, the smartest (and most budget-friendly) move is to work with what you’ve already got - and trust us, the results can be just as good!
Refinish instead of replacing – Timber floors looking a little worse for wear? Instead of ripping them up, sand and stain them for a fresh new lease on life, or whitewash them like we did at Bonnie’s Beach Shack for a gorgeous coastal vibe. The same goes for kitchen cabinetry - a lick of paint, new handles, and soft-close hinges can give old cupboards a whole new lease on life for a fraction of the cost.
Repurpose existing features – Got solid timber doors, windows, or architraves? Instead of sending them to landfill, strip, repaint, or repurpose them! In Lana’s TV room, we relocated existing windows, saving thousands by reusing them instead of purchasing new ones.
Before you send anything to the skip, ask yourself: Can this be refreshed, reworked, or reimagined? A few clever updates could be all it takes to breathe new life into your space - without blowing the budget.
MAKE 2025 THE YEAR OF YOUR DREAM RENO
Renovating isn’t just about upgrading your home - it’s about upgrading your lifestyle. Yes, it might be the most expensive thing you ever do (aside from purchasing the house), but when done right, a renovation can add value, comfort, and joy to your space for years to come. Whether you're refreshing a single room or transforming your entire home, there’s a renovation solution to suit every budget and vision.
The key? Plan carefully, choose materials wisely, and stay realistic about costs. Prioritise high-impact upgrades, shop smart and don’t forget to budget for those unexpected surprises. With the right approach, you can create a home that’s not just beautiful, but also functional, timeless, and 100% YOU.
Ready to bring your dream reno to life? Join us inside Three Birds Reno School, where we spill all the secrets, strategies, and insider tips to help you design, budget, and build or renovate with confidence.
