The Ultimate Guide to Home Renovation Costs in the SF Bay Area (2024)

Looking to renovate your Bay Area home, but not sure where to start? Renovating your home is a big undertaking—you’ve come to the right place to learn as much as you can about the home renovation process before tackling it!

In this guide, we’re here to get you up to speed on home renovation costs in the San Francisco Bay Area. Read on to learn the current average home renovation costs in the Bay Area, plus renovation budgeting tips and the easiest way to find the best local contractors for the job. 

Overview of home renovation costs in the SF Bay Area

The total cost of your home renovation will depend on a number of factors (more on those later). But to get a general idea of home renovation costs in the Bay Area, you can consider these latest estimates:

• At the lower end of renovation project estimates, expect to pay an average of $100 to $300 per square foot. That’d be for cosmetic updates, like painting and flooring. 
• At the higher end of renovation project estimates, you may need to budget at least $400 to $800 per square foot. That estimate would cover more complex renovations, like gut renovations or adjustments to the actual structure of your home. 

Learn More: How to Start Planning a Home Renovation

What influences home renovation costs in the SF Bay Area?

Knowing the factors that influence home renovation costs in the Bay Area will help you start to plan your budget. We’ve broken down those costs into the following categories: 

Labor

Hiring high-quality licensed professionals to manage and complete your project is a key part of any successful home renovation. You should plan for your labor costs to account for around 60% of your budget. These labor fees should cover hires like a general contractor, electrician, plumber, HVAC specialist, and any other subcontractors your renovation requires. 

When you partner with Block, we’ll match you with the best contractors in the Bay Area for your unique project needs, so you can easily compare quotes and find the best deal for your budget. 

Design

It’s super helpful to hire an experienced interior designer to help you kick off your project—especially when it comes to more complex remodeling plans. A designer will support you in refining and bringing your vision to life. For example, an interior designer can help you realistically outline your new layout, pick the most feasible materials, and generally ensure you make smart decisions as you plan your project. 

Plan for around 5% to 10% of your budget to go toward design fees. Remember: The upfront costs of hiring a designer may feel steeper than a DIY approach to design, but the fact is that prioritizing the expertise and guidance of a design professional will save you tons of valuable time and money down the line. 

Save even more by partnering with Block—you can get easy access to a variety of quality design services for your renovation.

Materials

You’ll want to plan for around 30% of your budget to go towards the costs of materials for your renovation. That includes purchasing materials like flooring, paint, fixtures, cabinets, and any other supplies needed for your particular remodel. 

Take the time you need to research your options for materials online, but wherever possible, remember that it’s also useful to shop locally. You’re supporting your Bay Area economy whenever you purchase from local specialty sellers. By building relationships with your community’s small businesses, you might even be able to strike deals on some discounted materials. Plus, even if you buy locally at a chain store, your purchase will have a lower environmental impact than shipping goods. 

Wherever you purchase your project materials, it’s helpful to keep in mind both first and second choices for each type of material. That way, if an item runs out of stock or dramatically increases in price, you’ll already know what your backup would be, so you can purchase it without delay.

Unforeseen expenses

Even when you painstakingly plan your budget, once your renovation is underway, unexpected issues may crop up—with their unforeseen expenses not far behind. So, just in case your team uncovers issues like mold, rot, or the need for essential plumbing or electrical updates, make sure you’re not caught without a plan. 

It’s best practice to allocate around 10% of your budget to a contingency fund. That’ll help you be flexible in the face of surprises, keeping your renovation timeline on track. 

Additional expenses

It’s likely you’ll need to account for a variety of other costs for your renovation. 

Common additional renovation expenses include: 

• Permits and inspections
• Demolition and debris removal
• Relocation during construction

The costs of labor, design, and materials will consume the majority of your budget, but make sure you don’t max it out without accounting for these expenses as well. 

Cost for gut renovation vs. non-gut renovation

To gut or not to gut? That may be one of your first home renovation questions. The answer depends on the complexity of your vision. 

Ask yourself: Does your home just need surface-level updates, or do you need to go deeper to completely redesign your space? For example, do you just need to install new shower tiles, or do you need to rearrange a load-bearing wall and plumbing to totally remodel your bathroom layout? 

Let’s go over those two renovation options and their costs in the Bay Area. 

Gut renovation costs

A gut renovation involves gutting your home’s interior by stripping the walls, floors, ceiling, and potentially plumbing and electrical systems. Whether it’s a room or the entire house, a gut renovation gives you the freedom to completely refresh and redesign your space without being limited by the current layout. 

Gut renovations are significantly more expensive than cosmetic renovations due to the scope and complexity of the work. A gut renovation in the Bay Area could cost you as much as $450 or more per square foot. That cost should include the demolition and clean-up disposal phases. 

Cosmetic renovation costs

Instead of totally overhauling your space, you may only need cosmetic updates. In that case, your project would be categorized as a non-gut renovation. This involves less intensive surface-level changes that don’t require structural alterations. For example, simply repainting or reflooring would fall under this type of renovation.  

Since you’re remodeling the space within the limits of its existing walls, cosmetic renovations are less expensive compared to gut renovations. You can expect to pay about half the cost per square foot as you would for a gut renovation. That said, the exact cost of this type of renovation will vary wildly depending on the project. For example, there’d be a vast difference between the cost of repainting one room versus the cost of repainting your entire home interior.

Cost of renovating dry spaces vs. wet spaces

One way that contractors will categorize your different renovation spaces is in terms of dry versus wet: Has the room been exposed to the elements in some way, or is it relatively self-contained? The conditions of a space in its environment influence the kinds of work that space may need in order to get it up to code and complete a successful renovation. 

Renovating wet spaces

Bathrooms, laundry rooms, and kitchens are common examples of spaces in your home that are regularly exposed to elements like water, steam, and high humidity. These wet spaces tend to be more expensive to renovate because they require specialized labor that dry spaces don’t always need. For example, renovating your bathroom might require updated plumbing and waterproofing, plus the installation of waterproof fixtures and moisture-resistant paint that can withstand humidity and mildew. 

Due to the need for specialized labor and materials, the costs of renovating wet spaces will be higher than renovating drying spaces. If you don’t hire the appropriate professionals for wet space work, you could be setting yourself up for costly mistakes, so be intentional about your contracting decisions. 

Renovating dry spaces

Living rooms, dining rooms, bedrooms—spaces like these are considered drier than their plumbing-heavy counterparts, and therefore less costly to renovate. Since you don’t have to worry about tasks like extensive waterproofing in these rooms, the renovation costs tend to be lower. Dry space renovations might include things like flooring and electrical updates.

Heating and cooling renovation costs

Since the Bay Area’s climate typically doesn’t get too hot or too cold, installing an HVAC system may not be as much of a necessity compared to other parts of the country. But despite the mild coastal temperatures, it’s common to want control over your home’s indoor climate. With a quality HVAC system, you can customize a more comfortable indoor temperature and air quality. 

For HVAC renovation, your expenses could range from $5,000 to $20,000. Those estimates include Bay Area licensed HVAC specialist labor rates, mechanical renovation permits, and equipment purchases. The total cost will depend on factors like the size, age, and conditions of your building, as well as the type of equipment you’re installing. It’s best to install the most energy-efficient HVAC system—the upfront costs will be higher, but it’ll set you up for lower utility bills over time. 

Costs of home renovation permits and inspections

Keeping your project on track depends on obeying Bay Area building renovation laws. Many types of home renovations require a permit. If your project requires any, you need to get those permits before kicking off construction. 

Generally, these fees are priced at a rate per home valuation (e.g., $100 for the first $3,000 of renovation valuation in Berkeley), per square foot, or per hour. Total fees will depend on the type of permit or inspection, and vary by city in the Bay Area. Always make sure to visit your city’s website to find out your project’s most up-to-date legal requirements and fees—they may be very different in San Francisco versus Palo Alto versus San Jose. 

Tips for how to budget for your home renovation

If you want a smooth renovation process, you gotta be intentional with your budgeting. Plan a budget that’ll cover both the expected and unexpected, and you’ll be able to minimize both financial stress and project delays. 

Prioritize the essentials and identify savings potential by considering these budgeting tips:

• Determine your project vision and goals: Which areas of your home do you plan to update? Outline a clear vision for your priorities and the renovation’s end goal. 
• Set realistic expectations: How much you can actually allocate to your renovation project. How will you finance these costs? Does your realistic budget mean you need to alter your project vision? 
• Focus on necessities ahead of cosmetic updates. Your dream renovation might include installing beautiful new tiling, but before you order those Mexican tiles you’ve been eyeing, make sure you can afford all the infrastructural work that goes into your remodel before laying tiles. It’s essential to remember that a renovation is about more than what’s on the surface; it’s also about improving and reinforcing the safety and functionality of your home. 
• Organize your budget into categories: labor, design, materials, permits, and contingency funds. A general rule of thumb is to plan for 60% of your budget to go towards labor, 30% to materials, and 10% to other and unexpected expenses. That percentage breakdown might vary depending on your renovation’s specific needs, but in any case, you should always account for that contingency fund so you can be prepared to cover any surprises during the renovation process. 

Learn more: How to Plan Your Renovation Budget

How to select a contractor in the SF Bay Area

Whatever your project vision, the most important decision you’ll make to bring that vision to life within budget is the decision to hire a contractor. Most home renovations can take months to complete, so it’s crucial to partner with a reliable expert contractor who’ll be by your side guiding your project from start to finish. 

This selection process may feel daunting, but Bay Area homeowners are in luck: Block Renovation makes it simple. Our renovation experts will custom pick 3 top-quality licensed contractors from Block’s elite network and match them with you based on your project scope.

Block’s robust vetting process ensures that every contractor we recommend has:

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

When you get your customized contractor recommendations from Block, you’ll get the opportunity to schedule site visits to meet those contractors in your home and compare project proposals and quotes. From there, you’ll be able to choose the contractor who’s best fit for your project, so you can kick off your renovation with confidence and a trusted partner.