How Much Does a Home Renovation Cost in Sydney? (2026 Guide)

Most Sydney homeowners beginning a renovation journey ask:

“What is the cost of renovation?”

This question is getting more complicated every year. Although the building industry changes every year, with regulations, design expectations, and property conditions across Sydney evolving, renovation costs honestly differ from home to home.

At Extend A Home, we enjoy working with clients who, before entering into a renovation, want to know what is feasible. Rather than working with some of the more arbitrary numbers one might come across on the internet, we like to focus on the critical renovation cost drivers, the details of the planning process, and the formula to mitigate the risk of surprises.

This guide provides context on the drivers of renovation costs in Sydney, key budget considerations, and tips for navigating your projects with the most tremendous confidence.

Why There Is No One-Size-Fits-All Renovation Cost in Sydney

When searching for data on renovations, many homeowners want to know what the “average renovation cost in Sydney” is, but in reality, averages can be quite misleading.

The costs of renovations can depend on a wide variety of factors, including:

• The type of renovation
• The condition of the existing home
• The level of design and finish
• Structural complexity
• Approval requirements
• Site access and location

Given these factors, two homes of comparable sizes can look and budget renovations very differently.

Types of Home Renovations and Their Cost Impact

Cosmetic Renovations

Cosmetic renovations focus on improving a home’s appearance without altering its structure. These typically include:

• Painting
• New flooring
• Updated lighting
• New fixtures and fittings
• Minor kitchen or bathroom updates

Cosmetic renovations target a home’s aesthetics with minimal/no impact on its look and feel; thus, with no major construction involved, planning and management are also less complicated.

Partial or Mid-Scale Renovations

These renovations go beyond surface-level updates and may include:

• Kitchen and bathroom upgrades
• Internal layout improvements
• Updated electrical and plumbing systems
• New windows or doors
• Improved insulation and energy efficiency

This level of renovation is common in older Sydney homes that need modernisation to suit contemporary living.

Full Home Renovations

A complete home renovation typically involves:

• Structural changes
• Reconfiguring floor plans
• Multiple rooms are being renovated at once
• Major service upgrades
• Coordinated design across the entire home

At Extend A Home, homeowners often choose complete renovations to significantly improve how their home functions rather than make incremental changes.

Key Factors That Influence Renovation Costs in Sydney

Age and Condition of the Home

Older Sydney homes often come with hidden challenges such as:

• Outdated wiring or plumbing
• Structural wear
• Non-compliant building elements
• Asbestos or other legacy materials

Addressing these issues is essential for safety and compliance and can influence the overall scope of work.

Structural Changes and Complexity

Removing walls, altering rooflines, or changing the home’s footprint requires:

• Engineering input
• Additional approvals
• More detailed construction work

The more complex the structural changes, the more planning and coordination are required.

Design Choices and Level of Finish

The level of finish you choose plays a major role in the outcome. Decisions around:

• Joinery
• Flooring materials
• Fixtures and fittings
• Appliances
• Custom versus standard solutions

…all influence the scale and complexity of the renovation.

Council Approvals and Compliance

In Sydney, some renovations require:

• Development Applications (DA)
• Complying Development Certificates (CDC)
• Heritage or bushfire assessments

Approval pathways affect timelines, documentation requirements, and overall project planning. Homes in established suburbs often require more detailed compliance considerations.

Hidden Factors Homeowners Often Overlook

Many renovation budgets fail to account for indirect costs and project considerations, such as:

• Design and documentation
• Engineering and consultant reports
• Council and inspection requirements
• Temporary living arrangements
• Allowances for unforeseen site conditions

At Extend A Home, we always encourage homeowners to plan with a buffer so the project remains manageable even if unexpected issues arise.

Renovating vs Moving in Sydney

For many homeowners, renovation is considered an alternative to moving.

When comparing options, it’s important to look beyond surface costs. Moving often involves:

• Stamp duty
• Agent commissions
• Legal fees
• Moving costs
• Compromises on location or layout

Renovating allows homeowners to:

• Stay in the area they love
• Improve a known property
• Tailor the home to their lifestyle
• Avoid many relocation-related expenses

This is why more Sydney homeowners are choosing to renovate rather than upgrade through purchase.

Planning a Renovation Budget the Right Way

Instead of focusing on a single number, we recommend homeowners focus on:

• Clearly defining their renovation goals
• Understanding which changes are essential
• Prioritising functionality over trends
• Allowing flexibility in design choices
• Planning for long-term use of the home

A well-thought-out plan is often more valuable than chasing an unrealistic budget figure.

Why Experience Matters When Estimating Renovation Scope

Accurate renovation planning requires experience with:

• Sydney housing styles
• Local council requirements
• Older building conditions
• Construction sequencing

At Extend A Home, we help homeowners understand what is achievable within their goals and constraints, based on real-world experience rather than generic assumptions.

Our role is to provide clarity early, so there are no surprises later.

Renovating in Sydney in 2026: What Homeowners Should Know

In 2026, successful renovations are defined by:

• Thorough planning
• Clear communication
• Realistic expectations
• Professional guidance

Homeowners who invest time in understanding the process often achieve better outcomes — both functionally and financially.

Final Thoughts: Understanding Renovation Costs Without Guesswork

What do you estimate is the cost of a home renovation in Sydney in 2026?

Rather than relying on broad figures, the better question is:

“What will it take to achieve the outcome I want in my home?”

Answering this question will require analysing each aspect of the unique renovations needed. The more homeowners understand the factors, the more likely they are to complete the renovations.