According to the National Association of REALTORS® Remodeling Impact Report for 2022, a kitchen upgrade can result in a 67% return on the value.
There's no doubt that renovating a kitchen can do wonders for your home's value and your satisfaction, but it's also essential to set and stick to a budget to avoid financial distress. Understanding how much a professional kitchen remodeler costs, as well as what impacts price and how much to set aside, will all help you craft a budget.
We're covering everything you need to know, so start here if you're planning to redo the kitchen at home.
How Inflation Impacts Your Budget
The demand for home repairs and renovations is on the rise, and so are the prices of materials. The COVID-19 pandemic and more time spent at home made many homeowners realize their kitchens needed work. Unfortunately, supply chain issues and labor shortages mean higher prices on many materials.
Building materials went up 31.3% between early 2020 and 2022. These changes will result in higher prices for your home remodeling job, so keep this in mind when renovating a kitchen.
You can expect to see higher quotes on a job when it involves the following materials:
Lumber
Concrete
Gypsum
Paint
Steel
Insulation
Furnishings
Appliances
Plastic
Tools
Hardware
Of course, this isn't an exhaustive list. Inflation can impact many aspects of the job, so be prepared to add a little padding to your budget to account for it.
How Much Does It Cost to Renovate a Kitchen?
The price of renovating a kitchen depends on many factors, such as the materials used, the size of the room, the layout, how much work needs to be done, and so on.
If you're looking for a ballpark number, the cost for an average kitchen remodel is between $25,000 and $40,000. This number depends mainly on whether you're planning a minor remodel, a mid-range upgrade, or an upscale kitchen.
Since so much affects the price, it's better to set a budget that you can use for the project instead of only relying on averages.
The consensus is that homeowners should follow the 5%-15% rule. Homeowners should spend no less than 5% of their home's value but no more than 15% of the total value.
There are several factors that can impact this rule. Your budget is one, as you don't want to spend more than you can afford. For another, your home's value can fluctuate depending on the market.
As of this article, home prices are skyrocketing due to supply chain issues, low inventory, and more. If you're planning to stay rather than sell, you might not want to focus so much on the ROI as on what would make you happy at home.
What Affects Price When Renovating a Kitchen?
Many factors affect kitchen renovation costs. Research can help you put together a kitchen remodel budget, but you'll need to get a quote on a project to truly understand the costs.
Here are the different elements of kitchen renovations and factors that impact the price.
Location
The cost to remodel a kitchen will vary depending on where you live. Not only do prices vary from state to state, but also between rural areas and cities. You can expect to pay more for a remodel if you live in the city.
The source of where you obtain building materials will also affect the price. For instance, if you're interested in more exotic wood, you can expect to pay more.
Cabinets
One of the most exciting parts of designing a kitchen is choosing the cabinets. It's also one of the biggest factors to consider when planning a remodel, as the cost of cabinets makes up a large part of the budget.
You can expect to pay anywhere between $200-$800 per cabinet, depending on the style, the cost of materials, labor, and more.
The more cabinets you want, the more this will cost you. If you need specialty or custom-designed cabinets, this costs more as well.
Cabinets account for 20%-30% of the budget.
Countertops
The materials you want for your countertops, as well as the square footage and style, will all affect the cost. High-end materials like granite and marble will cost you far more than cheaper options on the market like laminate and quartz.
Since there are so many options for materials, the average cost of a countertop also varies widely. It can cost between $1,800 to $5,000 or more, depending on the size of the kitchen and the material you want
In general, countertops account for about 10% of the budget.
Appliances
If you want to upgrade your appliances during the kitchen renovation, and most homeowners do, you can expect to pay between $100-$10,000 or more per appliance.
A small appliance like a microwave may only cost a few hundred dollars, but a new stove, range, and refrigerator can cost thousands of dollars.
Don't forget about installation, which adds about $200 on average, as long as the hookups are in place.
Flooring
The cost of the flooring will depend mostly on the square footage and the material used. The different options for kitchen floors include laminate, vinyl, linoleum, tile, hardwood or engineered wood, cork, and more.
You can spend anywhere from $3 per square foot to $30 per square foot or more.
Porcelain or ceramic tile costs somewhere between $3-$10 per square foot.
Kitchen Size
As you might expect, smaller kitchens cost significantly less than larger kitchens as you're using fewer materials. Installing all the elements of the kitchen also takes less time, which saves on labor.
When it comes to construction, a contractor usually charges between 10%-20% of the total project cost.
To get an accurate price for how much it will cost to renovate your kitchen, you'll need to get a quote. A professional remodeler might give you a free estimate for your project, so you can accurately finalize your budget.
Prepare to Pad the Budget
When it comes to the kitchen, remodeling can seem like a daunting task, especially when planning for the unexpected. But preparing a contingency budget can cover any unexpected costs.
It's recommended to pad a budget for a kitchen remodeling by 10% to account for delays, overages, etc.
Are You Renovating a Kitchen?
If you're planning on renovating a kitchen, make sure you think about the above points and adjust your budget accordingly. Working with a kitchen remodeling service helps make your dream kitchen a reality. From design concepts to installation, Mankind LLC handles it all.
Don't wait! Get scheduled as soon as possible before prices continue to rise.
Contact us to discuss your kitchen remodel today.