Home Renovation Costs in 2021
It’s no secret that residential home sales skyrocketed just months after COVID-19 hit in March of 2020. The pandemic changed our everyday lifestyles and, with people working mainly from home, had an interesting impact on consumer purchasing and remodeling patterns. In several past columns we shared our opinions and observations on how the pandemic impacted our local real estate market. In this column we touch on home improvement and the cost to renovate a home. With continued robust housing demand in 2021, consumer renovation projects remain in high gear.
Whether a homeowner is renovating after living in a home for a period of time, completing cosmetic improvements prior to selling, or remodeling just after purchasing a new home, it’s clear construction costs and the demand for contractors to get projects completed is on the rise. If you’ve tried to contact a contractor recently and have not received a returned phone call for days or been told they can’t get to your project for a month or two, you’re not alone.
We caught up with Anthony Dileva, owner of Dileva Construction, a reputable and knowledgeable contractor in our area. Dileva shared these tips for homeowners considering a remodel. “Homeowners are shocked when they see the cost of material. I now recommend that clients walk through Home Depot so they can document pricing to see how material costs have escalated over the last six to twelve months. A basic sheet of plywood or 2 x 4 has tripled in price, and that’s only one example. Contractors are busier than ever so my best advice to homeowners is to have all finishes picked out in advance. Having materials/finishes ordered and delivered in advance will allow crews to work consistently and stay on schedule with completion timelines.”
Based on our knowledge, past experiences and online research, you can expect to pay $100-$400/sf for a full home renovation. Material costs (i.e. lumber, copper,etc.) have increased mainly due to decreased production during the pandemic and labor has gone up significantly due to higher demand. Following is a general guide for cost expectations in our area (Los Angeles County) for remodeling different areas of your home:
KITCHEN…A homeowner can expect to pay, on average, approx. $25,000 for a kitchen remodel with a minimum of $10,000 for a simple kitchen facelift up to $60,000 or more for high end finishes or larger projects. Cabinetry, appliances and labor make up a large portion of costs.
BATHROOM…On average, the cost of a bathroom remodel will come in at $10,000 with a range from $5,000 to $25,000 or more. Vanity and shower build out costs can account for a large percentage of costs.
LIVING & BEDROOMS…These will run an average of $4,000, with a low end of $2,000 up to $8,000 or more depending on the improvements. Flooring, paint, closets, and cabinetry make up the majority of costs.
HOME EXTERIOR…Painting the exterior of your home can, on average, range from $5,000 to $15,000. Landscaping will cost $2,000 to $6,000 (approx.) and a new roof can cost, on average, $9,000 (basic composition) up to $30,000 or more for tile.
NEW HOME CONSTRUCTION…If you’re building a new home the cost will vary significantly based on size, location and materials used. As a general rule of thumb, you can expect to pay $200 to $425/sf with an average overall cost of $350,000 to $1.5M or higher. Estimating costs can be difficult, so it’s wise to add 20% on top of your overall budget to account for the unforeseen. You may also incur costs for city permits, architectural design, engineering, soil reports, etc.
Costs and quality vary from contractor to contractor, so we always recommend obtaining two to three like estimates for any project you are considering.
Mike Harper and Peter Hazdovac are both licensed Realtors® with Keller Williams Realty. For more info., visit www.harperhazdovac.com