Everyone wants their house to feel like home, but with inflation, supply chain delays, and labor shortages, home improvement projects are getting pricier.
So, where will a home renovation or remodel be most likely to break the bank?
To find out, Lawn Love ranked 2022’s Most Expensive Cities for Home Improvement.
We ranked 200 cities based on 16 key indicators of renovation priciness, such as pros’ hourly rates, average age of homes, labor and supplies access, and average household spending on home improvement.
Use our rankings and in-depth analysis to get ahead of your next project during National Home Improvement Month.
In this article
- Most expensive cities ranking + key insights
- Most affordable cities ranking + key insights
- Infographic
- Expert take
- Methodology
- Invest in your home — but time it right
Most expensive cities ranking + key insights
See how each city fared in our ranking:
* We considered a lower Average Annual Household Income as “worse,” as it translates to lower spending ability. In the above table, a higher ranking number (e.g., 200) for the Income category therefore corresponds with a higher income.
Costly California
Stay on top of your savings in the Golden State, where everything seems more expensive. High Cali costs extend from buying land to watering your lawn — and now even home improvement.
Eight California cities fill out our top 10 overall, beginning with Silicon Valley. Sunnyvale leads the way as the Most Expensive City for Home Improvement, while San Jose (No. 2), San Francisco (No. 3), and Fremont (No. 4) follow closely behind. High Costs and Cost Inflators bumped them up, despite having some of the highest average household incomes in the country.
Prices don’t appear to deter many homeowners in these cities, though — average spending on home improvement is significantly higher in these metros, by thousands of dollars. Fremont residents spend the most in the nation at $7,298 per year. This vast price difference reflects the high cost of living, labor, and supplies in California.
High wealth = high costs in Washington State
You’ll need some serious green in the Evergreen State’s Puget Sound region if you want to remodel your kitchen or office. High Costs (No. 10) and Cost Inflators (No. 22) make home improvement an expensive endeavor in the Emerald City (No. 24).
Across Lake Washington from Seattle, Bellevue (No. 18) has even higher Costs (No. 5) and ranks even worse in Cost Inflators (No. 11). High average incomes — Bellevue has the second highest of the 200 biggest cities’ — and plenty of builders and suppliers help keep these Washington cities out of the worst spots in our ranking.
Tacoma (No. 44) has similarly high Costs. Puget Sound homeowners therefore should anticipate costly renovations, especially if they’re not making a ton of moolah.
Most affordable cities ranking + key insights
* We considered a lower Average Annual Household Income as “worse,” as it translates to lower spending ability. In the above table, a lower ranking number (e.g., 1) for the Income category therefore corresponds with a higher income.
Southern hospitality at affordable rates
Homeowners in Southern cities save a pretty penny on home improvement projects, thanks to affordable builder rates.
Northern Virginia cities Arlington and Alexandria tie with Washington, D.C., for highest average hourly contractor rate in the geographic South. Even then, these cities fall behind 95 pricier Northern, Western, and Midwestern cities.
Texas cities in particular have some of the lowest rates for contractors and structural engineers, with Brownsville, El Paso, McAllen, and Laredo sinking to the bottom in those metrics. Brownsville has the lowest hourly rate for contractors, $17.07, nearly $20 less than the highest, $37.01 in Sunnyvale, California.
Sunshine State savings
Frugal Florida cities dominate our Most Affordable Cities for Home Improvement ranking. In fact, more than half of our top 20 most affordable cities are located in Florida.
With low costs overall and access to plenty of contractors and building suppliers, cities like Orlando (No. 1), Miami (No. 2), and Cape Coral (No. 3) enable homeowners to upgrade their homes without breaking the bank.
Infographic
Expert Take
Home improvement can be a stressful but worthwhile endeavor. To help demystify the process, we reached out to home improvement experts to provide tips and guidance for first-timers and experts alike:
- What home improvement projects have gained popularity in recent years? Do you foresee any upcoming home improvement trends?
- What are the top three advantages of renovating or remodeling a home?
- How have recent supply-chain issues impacted renovations and other home improvement projects? When do you anticipate those issues to let up?
- What are three key things to consider before starting a DIY home improvement project?
- What’s your best piece of advice for first-time DIY-ers? What about for those opting to work with contractors?
- When should a homeowner hire professionals for a home improvement project versus DIY?
- What are the top three hidden (or less obvious) costs that homeowners should factor into their renovation budgets?
Ask The Experts
What home improvement projects have gained popularity in recent years? Do you foresee any upcoming home improvement trends?
Since people are spending more time working from home, home improvement projects have become more popular and widespread than before the pandemic. This trend is likely to continue if the work-from-home trend remains strong.
Outdoor projects, such as building patios, walkways, decks, or landscaping, are especially popular since people are spending more time outdoors post-pandemic. Open floor plans continue to remain popular remodeling options.
What are the top three advantages of renovating or remodeling a home?
Renovating or remodeling a home can provide a lot of benefits.
- If budgeted properly, you can add value to your home. Professionals have to pay for the cost of raw materials and the cost of labor. Labor is a significant proportion of most project costs. By doing a project yourself, you save the labor cost and can make home remodeling yield a financial benefit for you.
- Projects also help build your remodeling skill set and will help you complete future projects.
- Remodeling is exciting and something to brag about. You designed a project, completed it yourself, and can take greater pride in your house.
How have recent supply-chain issues impacted renovations and other home improvement projects? When do you anticipate those issues to let up?
Supply-chain issues have made renovations much more challenging. The most obvious issue is the increased costs of raw materials. Many remodeling projects can cost 25% or more due to price increases over the past couple of years.
Budgeting for a project is a lot more complicated when prices are likely to continue to increase, especially if you can’t purchase all the materials needed for a project at the beginning.
Getting access to the necessary materials to complete a project is also tricky, as some items remain in short supply. This is especially true for small DIY-ers, who are typically a lower priority for building suppliers than large clients.
Unfortunately, these issues are unlikely to let up for at least a year. Companies typically don’t pass along higher costs immediately. Instead, they spread the cost increases over several quarters. Since inflation continues to run hot, it’s likely that more price increases are coming for the rest of the year.
Most economists expect Federal Reserve actions to slow the economy in the second half of 2022 or 2023, so supply shortages and price increases are likely to slow by the end of 2023.
What are three key things to consider before starting a DIY home improvement project?
- You need to know why you are completing a home improvement project. Is the goal to add value to your house or to make your residence more aesthetically pleasing? You need to be happy with the final outcome. If the goal is to add value, you have to consider what other people want in a house. If the goal is to please yourself, then you have more flexibility to design a project you love.
- You need to have a clear idea of how much money and time the project will cost. It’s easy to underestimate the cost or ignore hidden costs.
- You need to do research to make sure you know how to complete the project properly and are aware of potential issues that could arise.
What’s your best piece of advice for first-time DIY-ers? What about for those opting to work with contractors?
Start small. DIY-ing is a learning process that can yield significant savings over time. Don’t get too ambitious and ruin your first project by attempting to do something too complicated.
Make sure to set aside extra money for unanticipated expenses. Working with contractors can be rewarding but perilous, so make sure to thoroughly check out contractor reviews and have a clear understanding of what you expect the contractor to do and how much it will cost.
Even if you are hiring a contractor, it pays to learn as much as you can about the home improvement project.
When should a homeowner hire professionals for a home improvement project versus DIY?
There are two main reasons to hire a professional: 1) There’s something you can’t do, such as electrical wiring or plumbing, or 2) the project takes too much time.
The first reason is straightforward. If you can’t do something, then it has to be done by a professional.
The second reason is more difficult to judge. DIY-ers who work full-time jobs can’t let a project interfere with their primary source of income, so projects will typically take much longer to complete and may interfere with your quality of life.
If you’re planning on redoing the kitchen but can only work during the weekends or after work, it could take you weeks or months to finish the project.
In the meantime, every day, you’re waking up to a torn-apart kitchen. If you’re not okay with that, then hiring a professional is worth it to speed up the process.
What are the top three hidden (or less obvious) costs that homeowners should factor into their renovation budgets?
Small renovation projects such as repainting the walls of your house or apartment generally don’t have significant hidden costs. The more ambitious a renovation project becomes, the greater the likelihood that costs will exceed your initial expectations.
The most common hidden costs are:
- Underestimating the amount of material or time needed for a project.
- Finding out that there are additional problems that need to be fixed (such as structural issues or finding that the house isn’t up to current code).
- Forgetting the cost of cleaning up or removal of debris in a safe way.
There is also an opportunity cost that needs to be considered. Will this project interfere with my job or impact my quality of life?
For complicated projects, it’s essential that DIY-ers carefully consider the changes they want to make and complete a thorough budget to minimize hidden costs.
What home improvement projects have gained popularity in recent years? Do you foresee any upcoming home improvement trends?
Since 2020, data shows that interior painting, bathroom remodeling, and installing new flooring have taken the top three spots on the list of home improvement projects.
As the real estate market is suffering from a lack of supply in many locations across the country, I think people would still continue to try to improve the values of their homes through home repair and remodeling projects. Spending is likely to remain strong.
What are the top three advantages of renovating or remodeling a home?
- As a homeowner, you are increasing the value of your home, which in this market is a very good investment, even if you’re not trying to sell anytime soon.
- Another reason is increased value in use. You are getting the emotional benefits of living in a nicer space.
- You are positioning yourself well in terms of having a house ready for the market if you need to sell.
How have recent supply-chain issues impacted renovations and other home improvement projects? When do you anticipate those issues to let up?
Supply-chain issues caused by the pandemic closures of economies across the world are still having ripple effects on the home building and renovations industry, causing delays across the value chain. Inflation is causing prices of materials and labor to be consistently rising across the board.
These issues are not likely to be resolved in the short term, resulting in increasing costs going forward.
What are three key things to consider before starting a DIY home improvement project?
- Envision what you’re trying to achieve with your project: What is the end goal? Adding value to your home for the purpose of maximizing equity is different than changing the color of your walls for aesthetic purposes and requires different planning.
- Cost is paramount –– plan everything before you start.
- Think carefully if the project is DIY-doable or if you need professional help.
What’s your best piece of advice for first-time DIY-ers? What about for those opting to work with contractors?
Educate yourself. Some projects require only beginners’ skills (painting, insulation, minor plumbing, and electrical fixes), while others (framing, flooring, kitchen/bathroom remodels) require professional help in most cases.
Attend classes in your local home improvement stores, and watch YouTube videos.
When should a homeowner hire professionals for a home improvement project versus DIY?
First, determine if your project is a need or a want, then estimate costs, and see if you can do part or the whole project yourself. Only then should you contract a professional.
What are the top three hidden (or less obvious) costs that homeowners should factor into their renovation budgets?
- If doing a DIY project, most people tend to underestimate the monetary and/or time costs a project involves. How much your time is worth should be a primary concern when deciding about the cost of a project and whether to hire professional help (aka “opportunity costs”).
- People tend to underestimate total remodeling cost: the average cost of a kitchen remodel was $35,317 in 2020, while a bathroom remodel stood at $13,401.
- Not hiring the right contractor may cost you significantly. An estimate is not a guarantee of final cost. Do not underestimate having a solid contract with your contractor that specifies points at which payments would be disbursed, which may be a good idea.
Methodology
We ranked the 200 biggest U.S. cities from most expensive to most affordable (1-200) for home improvement based on their overall scores (out of 100 points), averaged across the weighted metrics listed below.
For presentation purposes, the ranking tables above are divided between the 100 most expensive and 100 most affordable cities. However, a table ranking all 200 cities from most expensive to most affordable (1-200) is available upon request.
Construction Suppliers per Square Mile include hardware and paint stores and building, flooring, window, roofing, and siding suppliers.
Sources: AreaVibes, BuildZoom, Esri, FEMA, Homes.com, Houzz, Indeed, Investopedia, U.S. Bureau of Labor Statistics, U.S. Census Bureau, and Yelp
Invest in your home — but time it right
Record-breaking housing prices have been met with record-breaking renovations, and this is just the beginning. Some experts predict that spending on residential remodeling will continue increasing nationwide throughout 2022.
Median home improvement spending has increased by 50% in the past three years, and more than 55% of homeowners are expecting to undergo home renovations this year.
But why are Americans spending so much on home improvement?
- The housing market continues to be competitive. While demand is beginning to slow, sellers still have a big advantage. Houses continue to appreciate at record-breaking rates, and sellers can boost their potential ROI by investing in repairs and renovations before putting their home on the market.
- Even if you’re not selling, home improvement can vastly improve your quality of life. You can boost your health by adding a home gym, improve your cooking skills in an upgraded kitchen, or work more efficiently in a renovated home office.
- The pandemic also has played a big part in the booming renovation and remodeling scene. Lockdowns and remote work arrangements inspired a boom in kitchen, home office, and yard renovations.
This isn’t an HGTV dream for everyone, though. International supply chain delays have caused limited access to materials and surging prices.
Think past the inflation anxiety, and be smart with your money. If you’re searching for a new home, or even just looking to remodel, keep an eye on the market and research, research, research.
If you’re selling or buying, be sure to consult with local real estate professionals to get a better idea about the housing demand in your local market.
Don’t stop at improving the inside of your home — your yard is part of your home, too. Hire a local Lawn Love pro to revamp your landscape. Improving your curb appeal can increase your home’s value by up to 12%.
Main Photo Credit: Shutterstock
