How to Budget for a Full Home Renovation

A full home renovation is a significant investment, and getting the budget right from the start is one of the most important things you can do. Whether you are renovating a 1960s split-level or updating a 1990s builder-grade home, understanding where your money goes will help you make smarter decisions and avoid surprises.

Start with your priorities. In our experience, most homeowners have a wish list that exceeds their budget. That is completely normal. The key is to separate the must-haves from the nice-to-haves early in the planning process. The kitchen and primary bathroom are almost always the highest-impact areas and tend to get the largest share of the budget.

A general rule of thumb for whole-home renovations on the Eastside is $150 to $350 per square foot, depending on the scope and quality of finishes. A 2,000-square-foot home might range from $300,000 to $700,000 for a comprehensive renovation that includes a kitchen, two bathrooms, flooring, paint, lighting, and structural changes. Smaller cosmetic refreshes can come in well below that range.

Budget allocation matters. As a rough guide, plan to spend about 30 to 35 percent of your total budget on the kitchen, 15 to 20 percent on bathrooms, 10 to 15 percent on flooring, and the remainder on systems, structural work, paint, lighting, and other finishes. These percentages shift based on the condition of your home and your specific priorities.

Always plan for the unexpected. Older homes often have hidden issues — outdated wiring, corroded plumbing, insufficient insulation, or structural concerns that only become visible once walls are opened. We recommend a contingency of at least 10 percent, ideally 15 percent, set aside specifically for unknowns. On many projects, this buffer is what keeps the project moving forward without financial stress.

Finally, get a detailed written estimate before you commit. A trustworthy contractor will provide a line-by-line breakdown, not a single lump-sum number. This transparency lets you compare options, make informed trade-offs, and track spending as the project progresses. If a contractor is reluctant to itemize their estimate, consider that a red flag.