Remodeling Your Home Will Be Unaffordable If You Live in One of These 8 Cities

Remodeling your home is an expensive project. In 2023 alone, homeowners nationwide spent around $485 billion — up 2.6% from 2022 — on home remodeling and repairs.

Of course, your expenses as an individual homeowner are much lower. But that doesn’t mean your remodeling project will be cheap either. Depending on where you live, remodeling might be completely unaffordable.

These are the top U.S. cities where home remodeling is the most expensive (in descending order) based on the cost of remodeling five main rooms — kitchen, bedroom, living room, dining room, and bathroom. The household income and typical home value of homeowners looking to remodel their home come from Houzz.

Let’s take a look at some cities where homeowners might have trouble affording their next remodeling projects.

• Typical cost of a home remodel (total): $86,700

It’s no surprise that New York makes this list. It’s one of the most expensive states to live in, with an overall cost of living index of 125.9.

Approximately 92% of homeowners hire a professional to complete their remodeling project. The average household income for these homeowners is $155,000, while their typical home value is $625,000.

• Typical cost of a home remodel (total): $87,018

Like New York, San Jose homeowners — 93% — hire professionals to remodel their homes. The average household income for these individuals is also $155,000, while their typical home value is $825,000. As a whole, California has a cost of living of 138.5. This makes it the third most expensive state to live in.

• Typical cost of a home remodel (total): $88,935

Approximately 96% of Jersey City homeowners work with professional contractors on their home remodeling projects. The typical home value before the remodeling is $675,000. The average household income for homeowners looking to remodel is $160,000.Considering New Jersey is one of the most expensive states to live in with a cost of living index of 113.9, it’s unsurprising that home remodeling is also pricey.

• Typical cost of a home remodel (total): $91,248

Illinois is one of the least expensive states to live in, but watch out for those hefty remodeling costs. One of the reasons why Illinois makes this list — not once but four times — is because it’s the second-highest-paying state for U.S. construction workers.

Around 86% of homeowners hire professional contractors for their home remodeling projects. Their typical home value is $425,000, and the average household income for remodeling is $140,000.

• Typical cost of a home remodel (total): $92,493

Joliet is much the same as Elgin when it comes to the numbers.

Most homeowners hire professionals for their remodeling projects. The typical home value is $425,000. Homeowners looking to remodel also have a typical household income of $140,000.

• Typical cost of a home remodel (total): $93,196

San Francisco has long been known for its high housing costs, but it also bears repeating that it’s one of the most expensive cities for remodels.

Around 95% of homeowners work with professionals for their projects, and their average home value is $875,000. Despite these significant costs, the average household income for those completing these expensive remodeling projects is still just $160,000.

• Typical cost of a home remodel (total): $93,723

Around 86% of homeowners hire professionals for their remodeling projects in Chicago. The average person completing such a project earns just $145,000 a year and has a typical home value of $450,000. Considering how expensive a home remodel can be in this city, many individuals struggle to afford the costs.

• Typical cost of a home remodel (total): $100,975

Naperville is the most expensive city for home remodels. The average household income for those looking to remodel is just $130,000 — not much higher than the actual remodeling costs. The average home value for homeowners completing their remodeling project is $425,000.

So, why’s remodeling your home so expensive — aside from income-to-cost ratios?

“One of the reasons is the need for more quality contractors in the construction industry, the lack of interest in today’s youth in pursuing construction careers is at an all-time low, and the impending retirement of many experienced contractors at an all-time high, resulting in an aging workforce,” said Chris Hock, a general contractor and owner at Earth Saving Solutions.

“As the demand for construction services increases, the limited supply of skilled labor decreases,” said Hock. “This will drive up prices, with subcontractors charging more than ever to meet the demand. It will only get worse as every generation chooses easier, less manual work. Because of this, those who get into a skilled construction trade and get licensed will make a really good living.”

Other factors also increase the cost of construction and labor. According to Josh Rudin, the owner of ASAP Restoration LLC, labor, testing, abatement and permitting needs all contribute to the overall cost.

“If a person decides to remodel their kitchen, it will require a permit in most locations, potentially materials testing if they decide to extract drywall and other materials, potentially structural plans if they want to do something like change a wall, a professional estimate, materials selected and delivered, the labor to demo the old kitchen, the labor to rebuild the new one, and the touchups to make it look like it was always that way,” said Rudin.