Ok, we know the cost of a renovation depends on the scope of the project – whether or not you’re planning on a budget-friendly remodel or a very high quality enterprise. But there are a few more general rules to consider as you contemplate a renovation reserve fund.
For one thing, purely cosmetic changes are a lot less expensive than structural alterations; structural changes that impact electrical or air systems can be especially costly. The particular rooms you’ll be renovating make a difference, too. Kitchens and bathrooms, the most commonly renovated spaces, tend to cost more than other rooms — and the price goes up significantly when plumbing is moved. Last but not least, consider the value of your home. More expensive properties cost more to renovate.
Here are some guidelines for average renovation cost as a percentage of purchase price and average project costs for NYC homes in the below $1 million, $1 to $3 million, and $3 million plus ranges from the team over at sweeten.com.
$1 Million and Below
Renovation cost as a percentage of the purchase price: 12%
Average cost per square foot: $151
Average kitchen budget: $5,700 – $58,800
Average bathroom budget: $1,255 – $31,750
Average project budget: $81,380
$1-3 Million
Renovation cost as a percentage of the purchase price: 14%
Average cost per square foot: $264
Average kitchen budget: $27,500 – $125,000
Average bathroom budget: $5,700 – $51,200
Average project budget: $112,314
$3 Million and Above
Renovation cost as a percentage of the purchase price: 26%
Average cost per square foot: $498
Average kitchen budget: $25,150 – $212,000
Average bathroom budget: $10,750 – $57,670
Average project budget: $184,500
Now that you have a solid idea of the costs associated with renovating an apartment in NYC, you can create a reasonable budget. Keep these general cost guidelines in mind when you’re looking at potential new homes, as well, to make sure you can cover any necessary updates.