How Much Does a Home Renovation Cost?
We get it. Asking for a home renovation estimate is like asking a baker, "How much is a cake?"
They’ll fire back a dozen questions: What flavor? How many layers? Custom font? Organic, imported almonds, or standard ingredients? And do you need it by tomorrow?
The same truth applies to your home. The final number can vary widely based on size, scope, quality of finishes, contractor availability, and yes, even the weather.
But don't worry, we're not going to leave you hanging. While the exact total is a moving target, we can break down where the money really goes in the Chicago market.
And trust us, the dollars don’t go where most people think...
Typical Percentage Construction Costs
Interior Finishes: 25 - 30% (cabinets, counters, flooring, tile, drywall, paint)
Major Systems & Insulation: 15 - 20% (HVAC, electrical, plumbing, insulation)
Framing: 10 - 15% (walls, floors, structure, sheathing)
Exterior Finishes: 10 - 15% (roofing, siding, windows, doors)
Foundations / Site Work: 10% (excavation, concrete, retaining walls)
Soft Costs: 10% (architecture, engineering, permits)
Other: 5 - 10%
Where to Actually Cut Your Renovation Budget
Most people look for budget cuts in all the wrong places.
It's tempting to focus on the flashy stuff—the finishes you see every day—but this approach will likely leave you frustrated and save you very little money in the grand scheme of things.
Stop Cutting the Fancy Tile
While switching from elevated tile to standard ceramic or trading wood floors for carpet feels like low-hanging fruit, and CAN be smart moves, finishes are only a fraction of your total cost.
The truth is, over 50% of your budget is spent on the stuff behind the walls:
Structure: Framing, foundation work, and demolition.
Systems: Electrical wiring, plumbing, HVAC, and insulation.
These are the unseen necessities you must have. Cutting quality here ill advised. Focus your cuts on items that have a smaller percentage impact or high-value alternatives, not the core systems.
Don't Squeeze the Brains (Soft Costs)
It may feel like an easy win to push your architect or engineer to reduce their fees, but remember the old adage “you get what you pay for”. Soft costs (design and permitting) are only a small slice of the overall renovation pie.
In fact, paying a slightly higher fee for a great architect or engineer is one of the best investments you can make. Their expertise in design efficiency, smart material sourcing, and navigating Chicago's complex permitting process will often save you significantly more money during the costly construction phase.
The Takeaway: Budget cuts should be thought of holistically. Instead of sacrificing quality on the visible finishes alone, focus your energy on ensuring maximum efficiency in the design and planning stages, and understand that the bulk of your money must go toward the invisible, non-negotiable systems that make your home functional.