The Ultimate Guide to Home Renovation Costs in New York City (2024)

Overview of apartment renovation costs

The median price for a home renovation in New York City, including labor and materials, ranges from $91,000 to $163,000. There are a lot of factors that influence the pricing, including the scope of work and complexity, size of the home, materials used, age of the building, and more. 

What influences home renovation costs in NYC?

There are a range of factors that influence home renovation costs in New York City. From the size and scope of the project to the materials chosen and building requirements, every detail plays an important role in determining the price. It helps to understand these factors so you can properly plan your remodel budget.

Labor

Labor costs typically account for the majority of a home renovation budget. You should expect to spend around 60% of your budget on labor. Labor fees will vary based on the scope and complexity of the project, and they might include hiring a general contractor, electrician, plumber, or other subcontractors. 

Design services

A designer can help you to select materials, plan your layout, and bring your overall vision to life with your remodeled space. While it’s more expensive than doing it on your work, working with a designer can ensure you make smart choices. The cost of hiring a designer can greatly vary and significantly impact your budget. Block makes it easy by offering a range of design services so you can choose the support you need.

Materials

In an average renovation, you should expect to spend 30% of your budget on materials, but material costs can vary significantly. Materials may include flooring, tiles, paint, fixtures, cabinets, appliances, and other supplies needed for your particular project. It’s important to research material pricing and quality and try to find a balance that works for your budget. We recommend staying flexible with your material selections, as items can go out of stock or increase in price.

Additional costs

There are a variety of additional costs that could be included in your renovation. These may include expenses for demolition and debris removal, relocation costs, hardware or light fixtures, other accessories, and decor. It’s crucial to avoid maxing out your budget without accounting for these additional expenses.

Unforeseen expenses

No matter how well you plan your project, renovations can still bring unexpected surprises. You may discover mold, rot, or the need for essential plumbing or electrical updates. Setting aside a contingency fund of approximately 10% of your budget will provide the flexibility needed to handle unforeseen expenses and keep your project on track.

Cost for gut renovation vs. non-gut renovation

A gut renovation involves completely stripping down the interior of your home, by removing walls, floors, ceilings, and sometimes plumbing and electrical systems. This allows you to completely redesign the space. 

In contrast, a non-gut renovation—sometimes called a cosmetic renovation—entails surface-level updates or changes that don’t require major structural alterations. This might include only updating specific rooms or work such as painting, flooring, or other less intensive remodels.

A gut renovation is significantly more expensive since you’re either taking down walls or stripping them back completely. You should expect to spend over $100,000 for a full gut renovation, but pricing will depend on the size of your space, complexity of the work, and other factors. 

A non-gut renovation is less expensive because you’re remodeling the space within the existing walls. Below are the median prices for NYC remodels by room type, though these prices can vary depending on specific project details:

Cost of permits and formalities

The cost of permits can vary depending on the type of work being done, but you should expect to spend between $2,500 to $5,000 on permits in NYC. This estimate includes not only the permitting fees but also the costs for licensed professionals to file, perform, and insure the work. Permitting costs can be higher if a Registered Architect is required.

It’s essential to obtain permits to comply with local regulations and avoid legal complications or potential fines. Your contractor should work with the city building department, your property management company, and any other relevant parties to determine the necessary permits for your project.

Another factor to consider is the condo or coop board approval process. Depending on your building type, its rules, and existing conditions, this process can impact what work is allowed and how it’s executed, which can impact costs.

Cost of dry spaces vs. wet spaces

Wet spaces

Wet spaces are parts of the home that are exposed to water or high humidity, such as bathrooms, laundry rooms, and kitchens. Renovating these spaces is more expensive because it typically requires specialized labor, such as plumbing, tiling, waterproofing, and installing fixtures and appliances. It’s important to hire experienced professionals for wet spaces because the work is complex and mistakes can be costly. Material costs are also higher in these areas because they need to be waterproof and durable. 

Learn more: A Complete Guide to Bathroom Renovation Costs in New York City

Dry spaces

Dry spaces are areas that do not require extensive waterproofing or plumbing work, such as bedrooms, living rooms, and dining rooms. Renovations in these spaces are less expensive because the work involved isn’t as complex, typically including tasks like painting, flooring, and electrical work.

Heating and cooling costs

New York City has a humid subtropical climate, with hot, humid summers and cold winters. Because of this, it’s important to make sure your HVAC system can keep your home temperature comfortable year-round. Heating and cooling costs are significant considerations in an NYC remodel and are influenced by the type of HVAC systems installed, the energy efficiency of the equipment, and the specific requirements of your building.

Types of heating and cooling systems

Central heating and cooling systems

Central air is common in larger buildings and homes. It can be expensive to install or upgrade these systems because it requires ductwork, high-capacity units, and advanced thermostats.

Split systems and mini-splits

Homeowners often choose split systems because of their flexibility and energy efficiency. These systems can be installed in individual rooms or areas of the home. Additionally, they’re easier to install in older buildings without existing ductwork, which makes them more cost-effective.

Radiant heating

Radiant heating is the most luxurious option, involving the installation of heating elements under floors or within walls. It’s more expensive to install, but it may be worth the splurge for the comfort it provides on cold winter mornings.

Factors impacting your HVAC budget

HVAC installation costs

The cost of installing heating and cooling systems varies significantly depending on the type of system, type of building, existing conditions, and other factors. Homeowners should expect to spend anywhere from $2,000 to tens of thousands of dollars updating or installing their heating and cooling systems.

Operating costs

While you may be focused on the immediate costs of installing an HVAC system, it’s essential to consider the ongoing operational costs. Modern, energy-efficient systems typically cost more to install but offer reduced utility bills over time.

Tips for how to budget for your apartment renovation

Budgeting for your renovation is essential to ensure you can cover all expenses and avoid financial stress if unexpected costs arise. A well-planned budget helps you prioritize what’s essential for your project and identify areas where you can save.

Set realistic expectations

Before you start your renovation, evaluate your finances and determine how much you can realistically spend. 

Determine your goals

Consider what your priorities are for your remodeling project. Identify which areas of your home need updates and set clear goals for what you want to accomplish.

Break down your budget

Organize your budget into categories, such as labor, materials, design services, permits, and contingency funds. As a general rule of thumb, you should expect to spend around 60% of your budget on labor, 30% on materials, and 10% on unexpected expenses. 

Prioritize necessities

Focus your budget on the essentials, such as updates that will impact the safety or functionality of your space. This may include structural reinforcements, electrical work, plumbing, or other repairs. It’s important to address these critical needs before using your budget on cosmetic updates. 

Plan for the unexpected

Set aside 10-20% of your budget for unexpected expenses, which are common during renovations. Planning for this in advance will make it easier to handle any surprises that arise.

How to select a contractor in NYC

The most important decision you’ll make during your renovation is selecting the right contractor. Your contractor will be your partner and expert that guides you through your project. 

It can be challenging and intimidating to hire a contractor, but Block makes it easy by custom matching you with up to 3 top-quality contractors from our elite network. Our robust vetting process ensures that every contractor has:

• Exceptional construction quality & knowledge
• Glowing customer references
• Stellar online reviews with a 4.0 rating or higher
• Proof of many successfully completed projects
• Excellent management & communication skills
• Verified licenses
• A minimum of $2MM insurance coverage
• 0 DOB violations or civil lawsuits
• Clean background checks
• Passed a rigorous four-week vetting process

You’ll have the opportunity to meet the contractors during a site visit to your home, and you’ll be able to easily compare their project proposals and choose the best fit for your renovation.