Introduction

Remodeling your home is one of the best investments you can make in 2025.

Whether you’re looking to boost your home’s value or just create a space that feels more you, a well-planned remodel can pay off big time. Plus, with housing prices still on the rise, many homeowners are choosing to upgrade their current space rather than move.

But here’s the thing: remodeling can get expensive fast.

That’s why it’s so important to have a clear budget and understand the factors that impact costs. From labor and materials to permits and unexpected surprises, knowing what to expect can save you a lot of headaches—and money—down the line.

In this guide, we’ll break down the real costs of popular remodeling projects. We’ll look at the numbers, compare costs by region, and share tips to keep your budget on track.

Let’s get into it!

Why Home Remodeling Is Worth It in 2025

Home remodeling isn’t just about making your space look nicer—it’s an investment. And in 2025, that investment can seriously pay off.

Rising Property Values

With property values continuing to rise across the country, homeowners are sitting on some serious equity. Instead of selling and buying something new (which comes with its own set of headaches), more people are choosing to remodel. It’s a smart move, especially when you consider how much value a well-executed renovation can add.

According to the National Association of Realtors (NAR), the median existing-home price in the U.S. was about $416,000 in 2024, up from $356,700 in 2021. That’s a jump of almost 17% in just a few years. With prices climbing higher, upgrading your current home is often more practical than competing in today’s hot real estate market.

High ROI Remodeling Projects

Not all remodeling projects are created equal. Some add way more value than others. Here are a few high-ROI projects that consistently make the top of the list:

Project Average Cost Average ROI
Kitchen Remodel $25,000 – $50,000 60% – 80%
Bathroom Remodel $10,000 – $25,000 55% – 70%
Basement Finishing $20,000 – $40,000 65% – 75%
New Siding $12,000 – $20,000 75% – 80%
Deck Addition $7,000 – $15,000 65% – 75%

Let’s break that down.

A kitchen remodel costing around $30,000 can add up to $24,000 in resale value. Even smaller projects, like a bathroom upgrade, can give you back about 60-70% of what you put in.

And it’s not just about getting a good return when you sell. Upgrades also make your home more enjoyable while you’re living there. Whether it’s a modern kitchen that makes cooking more fun or a finished basement that becomes the ultimate hangout spot, you’re improving your quality of life too.

Pre- and Post-Pandemic Remodeling Trends

The pandemic changed how we think about our homes. Suddenly, people were spending way more time at home and realizing their spaces just weren’t cutting it.

Home offices became essential. Open floor plans started to feel cramped. Outdoor spaces turned into safe havens. As a result, remodeling projects shot up.

According to Houzz’s 2023 Renovation Trends Report, remodeling spending increased by 15% from 2019 to 2023. Kitchen and bathroom upgrades remained the most popular, but new trends emerged, like:

  • Creating dedicated home offices
  • Expanding outdoor living areas
  • Upgrading to smart home features

This surge in demand hasn’t slowed down. In fact, it’s become the new norm. Homeowners realized that investing in their space just makes sense, whether they’re planning to stay put or sell down the road.

The bottom line? Remodeling in 2025 is as much about improving your lifestyle as it is about boosting your property value. And with the right projects, you can do both.

Average Remodeling Costs by Project in Phoenix

Planning a remodel in Phoenix? It’s essential to know what you’re getting into financially. Here’s a breakdown of average costs for popular remodeling projects in 2025, with a focus on Phoenix, Arizona. These figures are based on reputable sources like Remodeling Magazine’s Cost vs. Value Report and HomeAdvisor.

Kitchen Remodel

In Phoenix, kitchen remodel costs can vary significantly based on the scope and materials chosen. For instance, a small kitchen remodel might range from $25,000 to $40,000, while a large or extensive remodel could be between $50,000 and $100,000. (Source: Phoenix Home Remodeling)

Bathroom Remodel

  • Midrange Remodel: Typically about $25,000 (Source: Phoenix Home Remodeling)
  • Upscale Remodel: Costs can exceed $75,000

In the Phoenix area, a master bathroom remodel typically costs between $40,000 and $60,000, while a guest bathroom renovation ranges from $20,000 to $30,000. (Source: Phoenix Home Remodeling)

Basement Finishing

  • Average Cost: Ranges from $20,000 to $40,000

Basement finishing costs in Phoenix are influenced by factors such as the size of the space and the quality of finishes selected.

Whole-Home Renovation

  • Average Range: In Phoenix, whole-home renovation costs can vary widely. For example, home remodeling costs start around $75 to $100 per square foot for budget-level finishes. Sweeten

Exterior Upgrades

  • Siding Replacement: Approximately $15,000
  • Roofing Replacement: Around $20,000

Exterior upgrade costs in Phoenix can differ based on materials used and the size of the project.

Smart Home Integration

  • Basic Systems: Start at $1,500
  • Comprehensive Automation: Can exceed $10,000

Integrating smart home technology in Phoenix homes can range from simple installations like smart thermostats to full-home automation systems, affecting the overall cost.

Note: These figures are national averages and Phoenix-specific estimates. Actual costs can vary based on location, materials, and project scope. Always consult with local professionals for precise estimates.

Regional Cost Comparison: Remodeling Expenses in the Phoenix Metropolitan Area

Understanding how remodeling costs vary across different regions is crucial for effective budgeting. In the Phoenix metropolitan area, expenses can differ significantly between cities like Phoenix, Scottsdale, and Mesa. Let’s explore these variations and the factors influencing them.

Remodeling Costs Across Phoenix, Scottsdale, and Mesa

Remodeling costs can fluctuate based on location due to factors such as local labor rates, material availability, and the overall cost of living. Here’s a comparison of average remodeling expenses in Phoenix, Scottsdale, and Mesa:

Kitchen Remodel

  • Phoenix: A mid-grade kitchen remodel starts at approximately $25,000 to $30,000. (Source: Sweeten)
  • Scottsdale: Costs can be higher, with upscale kitchen remodels reaching $45,000 to $50,000 or more, reflecting the area’s affluent market.
  • Mesa: While specific figures for Mesa aren’t provided, costs are generally comparable to Phoenix, though they may vary based on neighborhood and project specifics.

Bathroom Remodel

  • Phoenix: A mid-grade bathroom remodel starts around $20,000, with high-end renovations beginning at $40,000. (Source: Sweeten)
  • Scottsdale: High-end bathroom remodels often start at $60,000, especially when luxury features are included. (Source: travek.com)
  • Mesa: Similar to Phoenix, but costs can vary based on the scope and materials chosen.

Whole-Home Renovation

  • Phoenix: Gut renovations start at $75 to $100 per square foot. (Source: Sweeten)
  • Scottsdale: Comprehensive remodels can begin around $250,000 and increase based on the extent of renovations and material quality. (Source: travek.com)
  • Mesa: Costs are generally in line with Phoenix, though specific figures may vary.(Source: travek.com)

Factors Influencing Regional Cost Variations

Several elements contribute to the differences in remodeling costs across these areas:

  • Local Economy: Affluent areas like Scottsdale often have higher labor and material costs due to increased demand and higher living standards.
  • Material Availability: Proximity to suppliers and availability of materials can affect costs. Areas closer to distribution centers may benefit from reduced transportation expenses.
  • Labor Market: The availability and demand for skilled labor in a specific region can influence labor costs. High demand for contractors in booming areas may lead to increased prices.
  • Permit and Inspection Fees: Local regulations and associated fees can vary, impacting the overall cost of remodeling projects.

Understanding these regional differences is vital for homeowners planning renovations. Consulting with local professionals can provide more accurate estimates tailored to specific locations and project scopes.

Budget Breakdown: Where Your Remodeling Dollars Go

Remodeling projects come with a lot of moving parts — and costs.

Knowing how your budget is typically allocated can help you plan effectively and avoid unexpected financial surprises.

How Your Budget Breaks Down

On average, here’s how most remodeling budgets are divided:

  • Materials: 45%
  • Labor: 30%
  • Permits and Fees: 10%
  • Unexpected Expenses/Contingencies: 15%

Remodeling Budget Breakdown

Pie chart showing 45% of remodeling cost goes to materials, 10% goes to permits and fees, 30% goes to labor, and 15% for unexpected expenses

Tips for Keeping Costs Under Control

Remodeling doesn’t have to break the bank. Here are a few ways to keep your project on budget without sacrificing quality:

  1. Plan Ahead:
    Getting a detailed estimate upfront helps avoid costly surprises later.
  2. Choose Cost-Effective Materials:
    Consider using durable but budget-friendly alternatives, like laminate countertops instead of granite.
  3. DIY Where You Can:
    Simple tasks like painting or minor demolition can save you money on labor.
  4. Choose a Remodeling Partner:
    Choosing a contractor who actually listens to your wants, needs and budget requirements is crucial to a successful remodeling experience.
  5. Be Strategic About Upgrades:
    Focus on high-ROI improvements rather than splurging on every detail.

With the right planning and a clear budget, you can get the remodel you want without draining your wallet.

Modern Remodeling Trends: Sustainability, Flexibility, and Technology

Homeowners today are looking for more than just aesthetics — they want functionality, sustainability, and technology. Let’s dive into some of the hottest remodeling trends of 2025 that deliver on all three.

Sustainable and Eco-Friendly Materials

Going green isn’t just good for the environment — it’s smart for your wallet too. Energy-efficient upgrades and sustainable materials can save you money on utilities and add value to your home.

Popular Eco-Friendly Upgrades:

  • Reclaimed Wood Flooring: Gives a rustic, timeless look while repurposing old materials.
  • Low-VOC Paints: Improve indoor air quality while reducing your carbon footprint.
  • Recycled Metal Roofing: Long-lasting and durable, with a lower environmental impact.
  • Energy-Efficient Windows: Cut down heating and cooling costs while increasing comfort.

Real-World Savings

Installing energy-efficient windows can reduce heating and cooling costs by up to 30%, according to the U.S. Department of Energy. Plus, using sustainable materials can qualify for green building certifications, which increase your property’s resale value.

Open Floor Plans and Multi-Functional Spaces

Modern families need flexibility. That’s why open floor plans and multi-functional spaces are gaining popularity.

Why Open Floor Plans Work:

  • Enhanced Flow: More spacious and airy, perfect for entertaining.
  • Better Lighting: Natural light travels further without walls blocking it.
  • Multi-Use Areas: Create a combined kitchen, dining, and living space that adapts to your needs.

Multi-Functional Spaces

With more people working from home, it’s important to have areas that serve multiple purposes:

  • Home Office Nooks: A desk tucked into a corner of the living room.
  • Convertible Guest Rooms: Use a pull-out bed or a Murphy bed to save space.
  • Hybrid Dining Areas: Combine dining tables with workspace setups.

Smart Home Technology Integration

Today’s homeowners want convenience, security, and efficiency — all at their fingertips. Smart home tech offers that and more.

Top Smart Upgrades:

  • Smart Thermostats: Reduce energy usage by up to 23%.
  • Voice-Controlled Lighting: Sync your lights with voice commands or your phone.
  • Security Systems with Cameras: Monitor your home from anywhere.
  • Smart Appliances: From fridges that track groceries to ovens you can preheat remotely.

Future-Proof Your Home

Investing in smart technology not only makes life easier but also boosts your home’s appeal to tech-savvy buyers. According to the National Association of Realtors, 46% of homebuyers say smart home features are an important factor in their purchase decision.

These trends aren’t just popular because they look good — they’re practical, sustainable, and aligned with modern living needs

Choosing the Right Contractor: Questions to Ask and Red Flags to Watch For 🚩

Hiring the right contractor can make or break your remodeling project.

Before you sign on the dotted line, here are some crucial questions to ask and red flags to watch out for.

Questions to Ask Before Hiring

  1. Are You Licensed and Insured?
    Never work with a contractor who can’t provide proof of licensing and insurance.
    This protects you from liability if an accident happens on your property.
  2. Can You Provide References or Examples of Past Work?
    Reputable contractors should have no problem sharing references and showcasing their work. Ask for before-and-after photos or even visit a completed project if possible.
  3. What’s the Timeline for Completion?
    Getting a clear timeline helps set expectations and avoids surprises down the line.
    Be wary of vague or overly optimistic timelines.
  4. Do You Offer a Written Estimate?
    A reliable contractor will always provide a detailed, written estimate outlining costs for materials, labor, and permits.
    Avoid contractors who give verbal estimates or refuse to put numbers on paper.
  5. How Do You Handle Changes or Unforeseen Issues?
    Remodeling projects rarely go perfectly to plan.
    Make sure the contractor has a process for managing unexpected challenges.

How to Spot Red Flags in Remodeling Contracts 🚩

Not every contractor out there is trustworthy. Here are some warning signs to watch out for:

  • Vague or Incomplete Contracts: If the contract lacks specifics, it leaves room for unexpected charges.
  • Large Upfront Payments: Reputable contractors typically ask for a reasonable deposit, not the full amount.
  • No Written Warranty: Always make sure there’s a warranty covering both materials and labor.
  • High-Pressure Sales Tactics: If they’re rushing you to sign, it’s a red flag.
  • Unrealistically Low Bids: If it sounds too good to be true, it probably is.

Why Choosing Local Matters 🌵

Hiring a local, reputable contractor like Artisan Design Remodel means you’re working with people who know the Phoenix area.

They understand local building codes, climate challenges, and material availability better than anyone else.

Plus, local contractors rely on their reputation within the community.
They’re more likely to stand behind their work and ensure you’re completely satisfied.

When it comes to your home, don’t take chances.
Choose a contractor with proven experience and a commitment to quality.

Maximizing Your Investment: Focus on High-ROI Projects

When it comes to remodeling, not all projects offer the same return on investment (ROI).
Focusing on upgrades that add the most value to your home ensures your money is well spent.

Top High-ROI Projects for 2025

  1. Kitchen Remodels (ROI: 60-80%)
    Kitchens are the heart of the home and one of the first places buyers look.
    Upgrading countertops, cabinets, and appliances can significantly boost your home’s value.
  2. Bathroom Renovations (ROI: 50-70%)
    Modern bathrooms with energy-efficient fixtures, tile upgrades, and walk-in showers appeal to buyers.
  3. Curb Appeal Upgrades (ROI: 70-90%)
    A fresh coat of paint, new siding, or a landscaped yard makes an unforgettable first impression.
  4. Energy-Efficient Improvements (ROI: 60-90%)
    Insulated windows, new HVAC systems, and solar panels reduce utility bills and increase home value.
  5. Basement Finishing (ROI: 70-75%)
    Transforming unused space into a livable area adds square footage and appeal.

Prioritize Functional Upgrades Over Aesthetic Ones

While it’s tempting to focus on trendy finishes, functionality always comes first.
Buyers appreciate practical improvements that make daily life easier.

Focus on Upgrades That:

  • Improve energy efficiency (like new windows or better insulation).
  • Add usable living space (like finishing a basement or attic).
  • Reduce long-term maintenance (like durable siding or roofing).
  • Enhance safety and accessibility (like walk-in showers and railings).

Real Stories from Artisan Design Remodel Clients

At Artisan Design Remodel, we take pride in delivering high-ROI projects that make a lasting impact. Here are a few stories from our happy clients:

Tanya Devoll
“I had a fantastic experience, from design to finish. I knew I wanted laminate flooring; Audrey helped me pick the perfect color to compliment the color of my staircase. My closet is new and clean again. The installers were professional and worked efficiently to get the work done.”

Roger Degroot
“Audrey was professional and very knowledgeable. She helped us on various options and oversaw the project until completion. I would recommend considering Artisan Design for your interior projects.”

Lori Wigler
“Our master bedroom suite needed to be completely reimagined and remodeled. Audrey’s incredible attention to detail and a clear vision for transforming an outdated and awkward space into a sleek retreat exceeded my expectations...“

Investing in high-ROI projects not only makes your home more enjoyable to live in but also prepares it for a higher resale value down the road.

If you’re ready to make your vision a reality, reach out to Artisan Design Remodel today.

Common Remodeling Mistakes to Avoid

When it comes to remodeling your home, there are a few key mistakes that can end up costing you more than you bargained for. Let’s take a look at some of the most common missteps to avoid:

1. Not Planning for Unexpected Costs

Remodeling projects can quickly get more expensive than planned. In fact, about 60% of homeowners report spending more than their initial budget on home renovations. From unexpected repairs to material price fluctuations, costs can add up. Always budget for a cushion — at least 10-20% of your total budget should be reserved for unexpected expenses.

2. Choosing the Cheapest Contractor Without Vetting

It’s tempting to go for the lowest bid, but this can often lead to more headaches down the road. The cheapest contractors may cut corners or lack the experience necessary to handle the specific needs of your remodel. Take time to check reviews, verify licenses, and ask for references. Phoenix is home to many contractors, but not all of them are created equal. Don’t skip the vetting process.

3. Ignoring Energy Efficiency Upgrades

Phoenix summers are hot, and energy bills can be sky-high. By not considering energy-efficient upgrades, you could be missing out on long-term savings. Adding things like energy-efficient windows, insulation, or solar panels can save homeowners up to 30% on cooling costs. Not only does it help your wallet, but it’s also better for the environment.

Staying mindful of these common mistakes can help you get the most out of your remodeling project — and avoid unnecessary stress or expense.

Conclusion

Remodeling your home is an exciting venture, but it’s crucial to plan and budget carefully to ensure everything goes smoothly. By avoiding common mistakes like unexpected costs, choosing unvetted contractors, and overlooking energy efficiency, you can protect your investment and enjoy the results for years to come.

If you’re ready to get started on your dream remodel, contact Artisan Design Remodel today for a consultation. We’ll help guide you through every step of the process, ensuring you stay on track and within budget.