HOW MUCH DOES A HOME RENOVATION COST IN 2026?
If a renovation is on your radar in 2026, you’re going to want to READ THIS!
Whether you’re thinking of 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 2026?”
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).
Three Birds House 17 Kitchen & Dining
WHAT’S THE DAMAGE? AVERAGE COSTS OF A HOME RENOVATION
Alright, let’s talk dollars and sense (see what we did there?). Renovation costs can vary wildly, depending on how big you’re going, how bougie you're feeling, and how much unexpected drama your house decides to throw at you.
Now, here’s the honest truth:
National “average renovation costs” can look deceptively low, because the moment you zoom in on Australia’s major cities, prices jump… a lot. So instead of giving you a fuzzy average, let’s break it down properly by city so you know what’s realistic for 2026.
RENOVATION COSTS IN AUSTRALIA’S MAJOR CITIES (2026)
Costs in 2026 have risen thanks to tradie shortages, material price hikes, big city demand, and ongoing construction pressure nationwide. Here’s your real-life snapshot of what it costs to renovate across the country this year.
SYDNEY — Australia’s Priciest PLACE TO RenOVATE
We’re sorry to break it to you, but Sydney is officially the most expensive place to renovate - not just in Australia, but one of the most expensive globally. 😱
Cosmetic / Light Refresh: $3,000–$5,000 per sqm
Good Quality, Mid-Range Reno: $5,000–$7,000 per sqm
High-End / Luxe: $7,000–$10,000+ per sqm
Ouch.
MELBOURNE — SLIGHTLY LOWEr… But Still Spendy
Melbourne renos usually sit just under Sydney prices, but still fall firmly in the premium zone.
Basic Update: $2,800–$4,800 per sqm
Mid-Range Reno: $4,800–$6,800 per sqm
High-End / Architecturally Designed: $6,800–$9,000+ per sqm
Melbourne is known for its attention to design and detail… expect a matching price tag.
BRISBANE — Growing & Getting Pricier
With Olympics-driven demand and population growth, both property prices and renovation costs in Brisbane have been steadily rising.
Cosmetic Works: $2,600–$4,500 per sqm
Mid-Range Reno: $4,500–$6,000 per sqm
Premium Upgrades: $6,000–$8,000+ per sqm
Still cheaper than Sydney and Melbourne, but climbing fast.
Reno Schooler, Prue Grove’s Farmhouse Cottage in Brisbane
Prue’s Kitchen
PERTH — Affordable… Until Freight Enters the Chat
You might get more bang for your buck in Perth… until you need materials shipped across the country.
Basic Reno: $2,500–$4,400 per sqm
Mid-Range: $4,400–$6,000 per sqm
High-End: $6,000–$8,000+ per sqm
If you’re keeping things simple and shopping locally, Perth is your budget-friendly friend.
ADELAIDE & OTHER CAPITALS — The Best Value Renos in AUSTRALIA
These markets tend to deliver the most bang for your buck.
Cosmetic: $2,300–$4,000 per sqm
Mid-Range: $4,000–$5,500 per sqm
Premium: $5,500–$7,500+ per sqm
A great place to stretch your budget further without skimping on style.
WHAT THESE NUMBERS REALLY MEAN FOR YOUR BUDGET
Here’s how those per-square-metre numbers actually play out in the real world:
Kitchen + Bathroom Combo: $50,000–$120,000+
Full House Refresh (no structural changes): $120,000–$300,000+
Major Structural Reno or Extensions: $300,000–$700,000+
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 all impact the final cost, and the only way to get an accurate budget is through formal quoting.
But for now, let’s look at what really moves the dial when it comes to reno budgets.
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 matters:
1. Location, Location, Location
Your postcode plays a huge role. Sydney and Melbourne have some of the highest labour and material costs in the country, while regional and smaller cities tend to be more affordable.
If you're renovating somewhere remote, factor in transport, because that dreamy marble benchtop isn’t hiking itself up the mountain.
Hot tip: Always get multiple quotes and shop around for materials.
Three Birds House 17 on Sydney’s North Shore
2. Size & Scope – How Big Are We Talking?
More space = more spend.
Knocking out walls or changing the floor plan? That’s when the big dollars roll in, because structural changes invite engineers, builders, and extra permits to the party.
3. Champagne Tastes vs. Smart Swaps
We all love a boujee tile moment, but the finishes you choose massively impact your budget.
Want the luxe look without the luxe bill?
Engineered stone instead of natural stone
Porcelain terrazzo-look tiles instead of real terrazzo
Flat-pack cabinetry with upgraded handles instead of full custom
Save on low-impact areas (laundry cabinetry) and splurge where it counts (kitchens and bathrooms).
4. Labour Costs – The Tradie Factor
Tradies are the heart of your reno. Electricians, plumbers and carpenters now commonly charge between $50–$150+ per hour, depending on location and experience.
Expect even more for structural work.
5. Unplanned Surprises – The ‘Uh Oh’ Factor
Asbestos. Termites. 1950s wiring. Enough said.
Electrical rewiring: +$5K–$15K
Asbestos removal: starts around $3K
Structural repairs: the wild card of all wild cards
This is why we always recommend a 10–20% contingency budget.
BREAKDOWN OF COSTS BY RENOVATION TYPE
Ready for some nitty-gritty? Here’s what you can expect to spend on the most popular home upgrades.
Kitchen Renovations
Cost Range: $20,000–$65,000+
A standard kitchen reno falls around the $20K–$35K mark, but bigger layouts, custom cabinetry and high-end finishes can easily push things into the $65K+ zone.
Remember when we renovated an entire kitchen for under $10K… with paint? Yep. Magic.
Three Birds Farmhouse Kitchen Makeover – Before
Three Birds Farmhouse Kitchen Makeover – After
Bathroom Renovations
Cost Range: $15,000–$40,000+
Simple bathroom updates start at $15K, but full rip-outs with luxe fixtures often end up well over $30K–$40K+.
We even did a bathroom refresh for under $5K - proof that creativity wins.
Living Rooms & Bedrooms
Cost Range: $4,000–$6,000 per room
Paint, flooring, lighting, built-ins - these rooms can be surprisingly budget-friendly if you keep things simple.
Never underestimate the power of paint!
CEO Gemma’s Airbnb-ready living room
Three Birds bedroom refresh
Outdoor Areas
Cost Range: $4,000–$12,000+
Decks, turf, garden makeovers, alfresco updates - the costs vary depending on how big you go.
Fresh turf is still one of the best-value transformations on Earth.
TIPS FOR BUDGET-FRIENDLY RENOVATIONS
1. Plan, Plan, Plan
Planning saves mistakes… and money.
List your must-haves vs nice-to-haves, and stick to the budget where possible.
2. Hire the Right Tradies
Use platforms like hipages to find trusted tradies. Read reviews. Compare quotes. It’s worth the time.
3. Shop Smart
Why pay full price when you don’t have to?
Our Three Birds Dream Discount Card gives you exclusive savings on appliances, furniture, homewares and more - every time you shop.
4. Reuse & Recycle
You don’t always need new.
We’ve painted floors, reused windows and doors, picked up Marketplace bargains - your wallet (and the planet) will thank you.
MAKE 2026 THE YEAR OF YOUR DREAM RENO
Renovating isn’t just about upgrading your home - it’s about upgrading your lifestyle. Yes, it might be one of the biggest investments you'll ever make, but when done right, it adds value, comfort, and joy for years to come.
Plan well, choose wisely, shop smart… and keep that contingency handy.
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 with confidence.
