Budgeting for a Home Renovation: Common Costs to Plan For

Renovating your home is exciting, but the cost side can feel confusing very quickly. You might start with a rough number in your head, then discover there are design fees, consent costs, trades, materials, fixtures, and a long list of “little extras” you didn’t think about at the start. That’s often where budgets begin to stretch.

The good news is that most renovation budgets in New Zealand tend to follow similar patterns. When you understand the common costs, and the places where money usually blows out, you can plan ahead, make better decisions, and stay in control.

Let’s break down typical renovation costs in NZ, show you where your renovation budget is likely to go, and highlight the key areas where it pays to be extra careful.

Typical renovation costs  and where your budget can stretch

Every project is different, but most renovation budgets in NZ tend to fall into the same cost “buckets”. Knowing these up front helps you plan more clearly and avoid surprises.

1. Design, planning, and consulting costs

Before anyone starts building, there’s design work to do. Your budget will usually need to cover:

• Initial concept design and layout plans
• Detailed drawings and specifications
• Engineering input for structural changes (if needed)

Budgets often stretch here when:

• You change your mind several times and need revised plans
• The project is more complex than expected and needs extra engineering or specialist advice

Spending properly on planning saves money later, but it’s still important to allow a realistic amount in your budget for this stage.

2. Council consents and approvals

If your renovation requires building consent or other approvals, there will be council fees and, sometimes, additional reports (e.g., drainage, geotech, fire safety).

Budgets stretch when:

• Consent is more complex or takes longer than expected
• Council requests changes or additional documents
• There are extra inspection or amendment fees

It’s wise to set aside a specific line in your renovation budget for consent and related costs rather than treating them as an afterthought.

3. Demolition and preparation work

Removing old walls, kitchens, bathrooms, ceilings, or floors, and preparing the site, all cost money. It can include:

• Demolition labour
• Rubbish removal and skip bins
• Temporary support or protection for existing structures

Budgets often blow out here when:

• There’s more to remove than expected
• Extra bracing, scaffolding, or safety measures are needed
• Hidden materials like asbestos are found and must be handled properly

Demolition can feel “invisible” because you don’t see the finished result yet, but it’s a big part of many renovation costs in NZ.

4. Structural work and framing

Any time you move or remove walls, open up spaces, or add extensions, you’re dealing with structure. It might include:

• New beams and posts
• Strengthening existing framing
• Rebuilding sections to meet current building code

Budgets stretch when:

• Old framing is in worse condition than expected (rot, borer, previous DIY work)
• Extra bracing or engineering solutions are needed to pass code
• The design changes during the build, requiring new structural work

It is an area where “unknowns behind the walls” can add cost once the house is opened up.

5. Services: plumbing, electrical, and heating

Updating or moving pipes, wiring, and heating systems is a major cost area. It can include:

• New plumbing for kitchens, bathrooms, and laundries
• Upgrading old electrical wiring and switchboards
• Adding power points, lighting, and data points
• Heat pumps, underfloor heating, or other systems

Budgets often stretch when:

• Old wiring or plumbing is unsafe and needs more work than expected
• You decide to add “just a few more” lights, outlets, or fittings
• You upgrade to higher-spec heating or ventilation systems

Service upgrades are important for safety and comfort, so it’s worth allowing a healthy amount here.

6. Materials, fixtures, and finishes

It is where many people underestimate costs because choices add up quickly. You’ll be paying for things like:

• Wall and floor linings, insulation, and doors
• Kitchen cabinets, benchtops, and appliances
• Bathroom fixtures (toilets, showers, baths, taps)
• Tiles, flooring, paint, and hardware

Budgets often blow out when:

• You upgrade to premium finishes across the board instead of in key areas
• You change your mind on tiles, benchtops, or fixtures once orders are placed
• Delivery and installation of special items take longer or cost more

A smart approach is to decide where you’ll spend more (for example, kitchen benchtops and showers) and where you’re happy with mid-range options.

Take control of your renovation budget with Refresh

At Refresh Renovations NZ, we build budgeting into our process from day one. We break down your renovation costs in simple language, help you prioritise where to spend and where to save, and keep you updated as the project progresses so you always know where your money is going. Our goal is to help you create a home you love and keep your renovation budget under control.

If you’re thinking about renovating and want clear guidance on your renovation costs in NZ, get in touch with Refresh Renovations. We’ll work with you to turn your ideas into a well-planned project with numbers that make sense.