Renovation expenses primarily depend on the size of the unit, the client's renovation requirements, the services and packages offered by the renovation company, and more. Labor costs form the most significant portion of these expenses. While the Construction Industry Association proposes annual wage adjustments, a renovation involves multiple trades and professions. There has never been a definitive guideline to determine if labor costs should be high or low. As a result, renovation costs have never adhered to a specific market standard.
According to the latest wage guidelines released by the Construction Industry Association in October 2022, wage hikes for different jobs range from 3% to 12.5%. Plasterers saw the highest wage increase. Estimating based on this for 2023, the foundational construction for an entire house averages between $600 - $700 per square foot. The cost of custom-made furniture varies, depending on the quantity, size, and complexity. According to past data, including furniture in the renovation averages an additional $200 - $300 per square foot. If there are specific design requirements, design fees will also be a factor. Designers' fees are based on their experience and capabilities and whether they will oversee the project. Generally, fees range from several tens to hundreds of dollars per square foot.
SOURCE: Construction Industry Trade Union resolution on 12 job types getting a 3% to 12.5% raise.
Lastly, the overall renovation cost must consider material prices. DECOLAND has previously discussed whether a quote that includes materials is beneficial. Even if the quote specifies that it covers materials, the listed price doesn't mean you have a comprehensive grasp of all renovation expenses. There's always a bit of strategy to make clients feel they're getting a great deal. Many details warrant attention. DECOLAND believes material choices truly depend on personal preferences and needs, with no definitive cheapest or most expensive.
For 2023's total home renovation costs, please refer to the chart below:
If you have any questions about renovation budgets, feel free to contact us anytime!
