Home Renovation Statistics 2025: What Australian Homeowners Are Spending, Building & Regretting

Thinking about renovating your home but unsure how much it might cost, what upgrades are worth pursuing, or what mistakes to avoid? You’re not alone. Every week, more Aussies wonder the same thing—how much should I spend, and where should I start? Our Home Renovation Statistics offer insights to help you make smarter choices and avoid common pitfalls. In 2025, renovations are booming, but so are the budgets, planning headaches, and regret stories.

We’ve gathered honest figures from everyday Australian homes to show what people are spending and why. We cover how much Aussies are spending, where the money is going, which upgrades pay off, and what too many people wish they’d done differently. If you plan to extend, upgrade, or just fix the aspects that bother you, this data-packed guide will provide clarity and maybe save you from an expensive mistake.

Quick Stats: 

• Australians poured more than $48 billion into home improvements across the country
• About one in every three households across Australia rolled up their sleeves and took on a renovation in 2025
• Average kitchen reno: $27,500 | Bathroom: $19,000
• 40% of projects included eco-friendly upgrades
• Top regret: going over budget due to poor planning
• Best ROI: kitchen remodels (up to 75%)
• Renovation timelines range widely—from as little as 4 weeks for minor updates to over 5 months for major makeovers.

The Statistics of Home Renovations in 2025

Renovations in Australia have reached new highs in 2025. If you’re just starting your journey, check out our helpful home renovation guide to understand the basics before diving in. Over one in three Australian households have taken on some form of home improvement this year, making it the busiest year for renovations in the past decade.

What’s fueling this spike? High property prices have made it harder to upgrade by buying elsewhere, pushing families to improve what they already have. More people are working from home and need functional, flexible spaces. And with lifestyle changes outpacing property availability, improving your current space makes sense.

The total value of the home renovation market in Australia is now sitting above $48 billion—a 13% increase from 2024. Want a breakdown of typical costs? Our Melbourne renovation cost guide gives a clear picture of what to budget. We’re talking about upgrades—from new kitchens and bathrooms to major extensions and backyard overhauls. For many households, these projects aren’t just about boosting property value—they’re about improving daily life.

1. How Much Are Aussies Spending on Renovations?

Let’s talk numbers. The average renovation budget has climbed sharply over the past year. What used to be a modest refresh now often becomes a six-figure investment, especially when extensions or major structural changes are involved.

Let’s take a look at what Australians are typically spending on different types of renovation projects this year:

Sydney and Melbourne continue to top the charts with the highest average spends, though Brisbane, Perth, and Adelaide are quickly closing the gap as regional homeowners take on ambitious improvements. A common issue? Homeowners still underestimate how much their project will cost. More than 60% of renovators spent 20–30% more than planned, usually due to under-budgeting for labour, permits, or structural repairs.

2. Renovation Spending by State

The amount homeowners spend varies widely depending on where they live. In 2025, Victoria holds strong as one of the highest-spending states, thanks to its dense urban population and a surge in multi-generational home modifications.

NSW is still out in front when it comes to renovation spending, but Victoria isn’t far behind.  The suburbs seeing the most activity include outer-Melbourne growth corridors, where families are opting for extra space over relocation.

3. What’s Being Renovated Most in 2025?

Kitchens and bathrooms remain the champions of home makeovers. However, 2025 has seen a strong shift toward renovations that improve lifestyle and flexibility, like outdoor entertainment areas and open-plan living spaces.

Plenty of Aussies are opening up their layouts to better connect the living room with the backyard or deck. Curious about bigger layout changes? Our home extensions and renovation services bring space and style together. Others are reworking layouts entirely to add home offices, second living rooms, or even additional storeys. Features like butler’s pantries, bi-fold patio doors, and energy-efficient windows are now more common than ever.

Renovators aren’t just aiming for style—they want comfort, functionality, and long-term usability. Smart lighting, voice-activated fixtures, and better insulation are all on the rise, blending modern design with practical improvements.

4. The Sustainable Shift

A big shift in 2025? More homeowners are choosing eco-smart upgrades over flashy finishes. With rising energy prices and increasing awareness around climate impact, homeowners are making smarter, greener decisions.

Close to 40% of renovation projects now include at least one eco-friendly feature. Solar panels are topping the list, followed by rainwater collection systems, double-glazed windows, and better insulation. Recycled and low-VOC materials are also becoming standard in many modern homes.

Many homeowners are taking advantage of government grants like the Green Build Grant, which offers financial incentives for upgrading to energy-efficient solutions. Not only are these upgrades better for the environment—they’re also helping families save on long-term utility costs.

5. What Renovations Give the Best Return?

Return on investment (ROI) is top of mind for many renovators, especially those planning to sell in the next five years. The key is choosing upgrades that align with your property’s existing value and appeal to a broad market.

Here’s a snapshot of the top-performing renovation types in 2025:

Smaller, targeted updates often offer the best returns. These findings reflect some of the most telling Home Renovation Statistics we’ve seen this year, showing where Australians are investing wisely.

A well-done kitchen can be a dealmaker. A well-designed outdoor space doesn’t just look great—it makes the home feel more open, social, and relaxed. Even simple cosmetic changes—like fresh paint, lighting upgrades, or modern flooring—can deliver impressive value.

6. Regrets, Mistakes & Lessons

Unfortunately, not every renovation goes to plan. In 2025, almost one in four homeowners reported having regrets about their project. Often, it wasn’t the design or materials—it was poor planning, unclear communication, or hiring the wrong trades.

Common renovation regrets include blowing the budget, skipping detailed contracts, and rushing decisions. Choosing the lowest quote is another trap. While saving money is tempting, it often comes with corner-cutting that leads to costly fixes down the line.

One homeowner from Victoria shared, “We hired a cheap builder who didn’t include site costs in the quote. Ended up paying an extra $18,000. We felt stuck halfway through.”

Lessons like these underscore the value of solid preparation, getting multiple quotes, checking credentials, and allowing buffer time and funds for surprises.

7. How Long Does It All Take?

If you’re planning a renovation, timing matters. And it often takes longer than expected. While smaller projects can be wrapped up in a few weeks, larger extensions or full-home upgrades can stretch across months.

In 2025, the average project timelines looked like this:

Delays are often caused by weather, council permits, material shortages, or labour bottlenecks. Many renovators recommend adding 15–20% more time to your schedule to keep stress levels down.

8. Who’s Renovating in 2025?

A wide mix of Australians are renovating right now. Young couples are modernising older homes, growing families are adding space, and downsizers are making their properties more liveable and accessible. Remote workers are especially active, transforming spare rooms into productive work-from-home offices.

Digital tools are also changing how people plan. About 60% of projects now involve online planners, design platforms, or renovation consultants. This shift has made it easier for people to visualise their ideas, stick to budgets, and communicate more clearly with trades.

9. DIY vs. Professional Builds

While the internet has inspired many to tackle their improvements, not all DIY projects end well. In 2025, more homeowners took on tasks like painting, tiling, or assembling flatpack furniture. But when it came to electrical work, plumbing, or anything involving structural changes, most called in the pros.

Surprisingly, 35% of DIYers admitted they eventually had to hire a professional to fix mistakes. That not only added cost but also often extended timelines.

DIY can be satisfying—and budget-friendly—but only when you know your limits. When it comes to big renovations, skipping corners to save a buck often backfires and ends up costing more.

10. Renovation Forecast for 2026

Next year looks just as busy, with even more Australians expected to invest in improving their homes. As sustainability becomes standard and property prices remain high, homeowners will continue choosing to upgrade instead of relocate.

Expect to see more modular renovations, AI-powered design tools, and projects focused on long-term livability and energy performance. If you’re interested in what’s trending, look at our top 5 renovation trends in Melbourne. Regional areas are also tipped for growth, especially as more Australians look for space outside major cities.

If current trends hold, home improvement spending could tip past $51 billion before 2026 wraps up.

Final Thoughts: What This Means for You

Home renovations in 2025 are about more than just adding value—they’re about making homes work better for the people living in them. With rising costs and shifting priorities, it’s important to plan smartly, budget wisely, and avoid the pitfalls others have already faced.

If you’re considering renovating, don’t rush in. These home Renovation Statistics clearly show that the best outcomes come from thoughtful planning, not quick decisions. Take the time to gather quotes, check references, and build a clear picture of what you want and why. The right renovation can transform your space—and your daily life.

At Magic New Family Homes, we believe great homes begin with great planning. Speak with our experienced team about your goals. We’ll help you create a home that feels just right.