Why Kitchen Renovation Costs Are Rising in 2025

Kitchen renovation costs have seen a noticeable increase in recent years. Rising material prices, labour shortages, and growing demand for premium finishes are some of the main factors.

At the same time, homeowners are investing more in technology and sustainability. From energy-efficient appliances to smart lighting systems, these upgrades add both convenience and value, but they can also increase the total cost.

Key Factors That Affect Kitchen Renovation Cost

Several elements influence how much your kitchen renovation will cost. Here are the main ones to keep in mind:

• Size of the Kitchen: Larger kitchens require more flooring, cabinets, and countertop materials, which naturally increases costs. Smaller spaces, however, can still be expensive if you choose premium finishes.

• Type of Materials Used: The quality of your materials has one of the biggest impacts on pricing. Granite countertops, hardwood cabinets, or custom tiles can add up quickly.

• Labour and Contractor Fees: Skilled labour is essential for plumbing, electrical work, and installation. Professional contractors may charge more, but they help prevent costly mistakes.

• Appliances and Fixtures: New appliances such as built-in ovens, induction cooktops, and smart refrigerators can raise your budget significantly.

• Design Complexity: The more intricate your design, the more time and expertise it requires. Custom-built cabinets or unusual layouts often come at a premium.

Average Kitchen Renovation Costs in 2025

Here’s a general idea of what you might expect to spend on a kitchen renovation in 2025, depending on your goals and space size.

Small Kitchen Renovation

For compact spaces, costs can range from $10,000 to $20,000. This usually covers new paint, refreshed cabinetry, updated lighting, and essential appliance upgrades. You can keep costs manageable by choosing laminate countertops and reusing existing fixtures.

Medium Kitchen Renovation

A mid-range remodel typically costs between $25,000 and $50,000. This level includes semi-custom cabinets, new flooring, modern appliances, and improved layouts. Many homeowners also use this opportunity to add open shelving in kitchens for a more modern and spacious look.

Large or Luxury Kitchen Renovation

If you want a complete transformation, expect to spend $60,000 or more. This budget often includes high-end finishes, custom cabinetry, advanced appliances, and lighting matters, with layered light designs that make the space both warm and practical. 

You can even incorporate the beauty of minimalism by opting for clean lines and clutter-free designs that create a timeless aesthetic.

Hidden Costs to Watch Out For

It’s easy to forget that not all renovation expenses are visible at first. Here are some hidden costs to keep in mind:

• Permits and Approvals: Depending on your local regulations, you may need permits for plumbing, electrical, or structural changes.

• Plumbing and Electrical Work: Old wiring or pipes may need replacement to meet modern safety standards.

• Waste Removal: Demolition can create a lot of debris that needs proper disposal.

• Unexpected Repairs: You might uncover water damage, mould, or outdated wiring once the renovation starts.

• Project Delays: Supply shortages or labour availability can stretch your timeline and your budget.

Smart Ways to Save on Kitchen Renovation Cost

Renovating your kitchen doesn’t have to break the bank. Here are a few simple ways to cut costs without sacrificing quality:

1. Plan Ahead: Create a detailed plan before starting. Sudden design changes during the project often lead to higher expenses.

2. Reuse What You Can: Keep your existing cabinets or appliances if they’re still in good shape. A new coat of paint or fresh handles can make a big difference.

3. Compare Contractor Quotes: Always get at least three estimates before deciding. It helps you find a balance between quality and cost.

4. Shop Seasonal Discounts: Buy materials and appliances during sales or clearance events.

5. DIY Small Tasks: Painting walls or installing backsplashes can be done yourself with the right guidance.

When to Hire a Professional Contractor

While DIY can save money, not all tasks are suitable for it. Complex electrical, plumbing, and structural work should always be handled by licensed professionals. This ensures your renovation meets building standards and avoids potential hazards.

Professional contractors also bring design expertise and project management skills. They can coordinate everything from ordering materials to handling permits, helping you stay on schedule and within budget.

Conclusion On Kitchen Renovation Cost

Kitchen renovation costs in 2025 will depend on your space, materials, and vision. By understanding the main cost factors and planning, you can avoid overspending while still achieving a stylish and functional kitchen.

If you’re ready to start your kitchen renovation journey, we at TwoThree Design can help. Our team specialises in creating modern, practical spaces that match your lifestyle and budget. 

Contact us today to explore design ideas or get a personalised quote for your dream kitchen.