Home renovation can add value to your house and become a great alternative to moving. However, it also requires financing. The Aviva latest report shows that the expected average cost of home remodeling over the next two years is $14,000. While the total price seems quite high, there are multiple cost-effective renovation ideas that will save you money in the long run. Let’s find out what renovation trends will work best in 2026.
Average Cost of Home Renovation
According to a previous article, a full three-bedroom house renovation will cost between $76,900 and $138,800. However, renovation spending varies widely depending on the following factors:
- Property characteristics. Your home’s size, age, and condition determine the complexity and duration of work.
- Labour. Although prices have stabilized, qualified specialists remain in demand. On average, you can expect to pay $135 to $325 per day, depending on the tradesperson and their qualification.
- Room type. The average cost of kitchen renovations is between $20,000 and $30,000, while bathroom renovations are usually $5,000 to $10,000.
- Materials. You can expect to pay from $15 to $47 per square foot for basic updates, while high-end projects involving premium materials like hardwood or natural stone can cost you between $79 and $118+ per square foot.
- Energy efficiency rules and expectations. More owners now prioritise insulation, heating controls, and glazing. These items can carry upfront costs but may reduce your expenses over time.
Budgeting Tips
Home renovation in 2026 requires a strategic approach. Here are a few tips that will help you start a project on a budget:
- Prioritise high-impact, low-cost improvements. Focus on upgrades that enhance energy efficiency or structural integrity before aesthetic changes. Simple updates, such as replacing insulation, installing LED lighting, or upgrading heating systems, often yield measurable savings on utility bills and boost property value.
- Plan projects in phases. Instead of attempting a complete overhaul, divide the renovation into manageable stages. This approach reduces financial pressure, spreads costs over time, and allows you to adjust plans to both your budget and priorities.
- Secure financing wisely. If you need additional funds, explore financing options that match your budget and repayment capacity. Many homeowners choose to borrow money to renovate a home through small personal loans. This way, they can accelerate necessary upgrades right away and benefit from lower bills.
- Monitor seasonal discounts. Building materials and appliances often follow predictable price cycles. Purchasing during late winter or early spring can significantly reduce overall costs.
- Prepare for the unexpected. Small upgrades often turn into mid-scale repairs as hidden issues often arise. A realistic contingency reserve of 10-15% of the expected cost helps avoid stress.
7 Best Cost-Effective Home Renovation Ideas
The options provided below can help you increase the value of your house and reduce bills over time.
Loft Insulation
Upgrading loft insulation is one of the fastest ways to improve thermal performance. Topping up with water to the recommended depth helps retain heat during winter and keep spaces cooler in summer. The main benefits are increased comfort, reduced energy consumption, and improved EPC performance. Installers can complete multiple projects in a single day, with minimal interruptions.
Tip: Before installation, check for ventilation and moisture. Proper air circulation prevents condensation and protects the wood.
Roof Replacement
A strong roof protects everything underneath. Replacing a damaged roof prevents leaks, reduces drafts, and can improve insulation if you add a breathable membrane and modern underlayment. Although it’s an expensive option, a new roof can enhance your home’s curb appeal and reassure buyers if you plan to sell in the medium term.
Garden Makeover
Outdoor spaces have become an integral part of life and a way to increase the value of your house. Simple changes that can be made on a budget, such as re-levelled paving, easy-to-grow plants, good drainage, and equipped seating areas, can transform the space, making it more usable. A neat, functional garden allows you to enjoy it year-round.
Storage Solution
Built-in storage systems visually expand the space of small and medium-sized homes. Built-in under-stairs storage, niche cabinets, and loft boarding for secure storage reduce visual clutter and improve everyday living. Pre-fabricated systems allow you to create a custom look at a significantly lower price compared to custom-made units.
Lighting
Lighting is a simple way to make your home more energy efficient. By replacing all your light bulbs with energy-saving LEDs, you can reduce your annual carbon emissions. This reduces energy consumption, while dimmers and smart controls improve comfort. On top of that, well-thought-out lightning can also be part of your home decoration. Combine ambient, task, and accent lighting for a balanced, functional, and appealing design.
Smart Termostats
Smart thermostats and zoning controls allow you to control your home’s heating remotely so that you can optimize heating schedules. This is especially useful in homes with irregular occupancy. If used correctly, thermostats reduce wasted heat and support comfort. Many models that cost around $150-$200 integrate with existing boilers and provide usage insights via an app.
Painting and Redecorating
Professional painting remains one of the most cost-effective renovation options. Neutral tones, refreshed wood finishes, and modern hardware give old spaces a more appealing and updated look. To ensure you’re not disappointed with the results, don’t neglect proper preparation. This includes filling, sanding, and priming the walls. By doing this, you will extend the life of the finish and prevent premature touch-ups.
How to Reduce Your Home Renovation Costs
Proper preparation often plays a key role when it comes to saving money on home renovations. Here are a few steps you can take:
- Prioritise home renovation projects. List the jobs that need to be done first, and tackle necessary repairs and energy improvements before moving on to cosmetic updates.
- Shop around. Spend some time comparing various labour and material options. This way, you will make an informed choice.
- Choose the right timing. Off-peak periods may offer more availability and sharper pricing. Avoid late design changes once work begins, as it often increases costs.
- Buy materials wisely. Retail counters and sales lines can help you save on flooring, tiles, and plumbing fixtures. Confirm quantities with your contractor to avoid overordering.
- Reuse and recycle. Maintain strong frames and replace only what cannot be restored or salvaged.
- Coordinate work. Consolidate tasks related to common projects, such as electrical work and lighting or plumbing and bathroom renovations. This will help you reduce callout and installation costs.