The world looks very different today than it did back in 2020 and so do remodeling budgets. The cost of everything, from groceries to building materials, have risen dramatically. Homeowners are often shocked when I review the expected cost of a kitchen or primary bathroom renovation. I want to take a moment to shed light on why prices have increased and what that means for your project.
Why Kitchens Still Lead in Value
A kitchen renovation remains the single most valuable update you can make to your home. The kitchen is the heart of the home, where meals are prepared, family connections, and memories are created. When done well, a kitchen remodel does more than increase market value; it enhances daily living and enriches your lifestyle.
Kitchens have always been the most expensive room to renovate due to the concentration of high-value elements like appliances, cabinetry, countertops, and plumbing fixtures. Compared to 5–10 years ago, however, the costs have risen sharply. These increases go beyond dollars and cents, they affect scope, timing, and even design decisions.
How Much Have Costs Increased?
- 2020: A mid-range kitchen renovation averaged $75,000–$100,000.
- 2025: The same project now often exceeds $150,000–$200,000.
That’s a 100% increase in just five years, turning what was once a dream project into a serious financial investment for many families.
Key Factors Behind Rising Remodeling Costs
General inflation has touched everything, lumber, metals, drywall, tiles, and especially appliances. Pandemic-era shortages left a lasting impact, and many materials never returned to pre-2020 prices. Add higher shipping costs and tariffs on imported goods, and the result is a sharp spike in material expenses.
There’s a shortage of qualified tradespeople, electricians, plumbers, lead carpenters, and skilled craftsmen. Those who remain are in high demand, which drives up wages. For homeowners, this translates into higher project costs.
COVID-19 exposed weaknesses in global supply chains. Appliances, plumbing fixtures, and even basic lumber experienced delays and limited availability, pushing costs upward.
Smart appliances, luxury finishes, and higher-quality cabinetry have grown in popularity. But not all products are built the same, durable, long-lasting materials come at a higher price. Investing in quality now means fewer repairs or replacements later.
Stricter codes now emphasize energy efficiency, sustainability, and safety. These improvements benefit homeowners long-term but often require specialized materials and extra labor up front.
How Homeowners Can Navigate Rising Costs
While costs have risen dramatically, you can still approach a remodel strategically to protect your investment:
- Budget with a buffer for unexpected expenses.
- Interview multiple design-build firms and trust your instincts.
- Work with a trusted professional who guides you through design and project development to select the right products and to optimize the space you are renovating.
- Explore material alternatives that balance quality with cost.
- Prioritize quality over aesthetics alone, lasting value matters most.
- Consider off-season scheduling when demand is lower.
Final Thoughts
The cost of remodeling has nearly doubled since 2020, shaped by inflation, supply challenges, labor shortages, evolving design preferences, and stricter regulations. But with the right planning and the right partner, your remodel can still deliver exceptional value, enhancing your home, lifestyle, and investment for years to come.
