Is Remodeling Cheaper Than Building a New House?

If your living space doesn’t meet your needs, you may be considering remodeling your current home or building a new one. But which option is more cost-effective? For most homeowners, targeted renovations like updating the kitchen and adding a bathroom cost far less than building new from the ground up. As you might expect, extensive whole-home renovations approach the cost of new construction.

So, how do you decide between remodeling what you have and building something brand new? Start with some facts and figures, weigh your priorities, and consider the pros and cons of each choice.

Cost Comparison Overview

Building a new home in North Carolina costs an average of $180 to $450 per square foot, depending on home style, material quality, and location. For a typical 3,000-square-foot house, you’re looking at a minimum of $540,000 for a builder-grade home or potentially well over $1 million for a custom home—and that doesn’t even count buying land.

Compare this with remodeling costs:

• Kitchen remodel: The kitchen is one of the most complicated and costly rooms to renovate. A major overhaul in Charlotte averages $80,000 to $100,000.
• Bathroom remodel: A full bathroom remodel ranges from $40,000 to $55,000, depending on size and materials. Particularly upscale projects may cost more.
• Home additions: Adding space to your home can cost between $300 and $400 per square foot.
• Whole-home remodel: Expect to spend anywhere from $300,000 to over $600,000, depending on the scale and complexity.

Pros & Cons of Renovating

Renovating isn’t always the fastest or simplest route, but it’s a solid option when you want to enhance what you already own.

Pros

• Usually more affordable, especially for single-room renovations or moderate updates.
• Keep your address, neighborhood, and school district.
• Focus on specific updates that matter most to your family.

Cons

• Older homes may have outdated wiring, plumbing, or foundation issues that must be addressed.
• The existing structure may limit what’s possible.
• Living through construction temporarily disrupts your daily life.

Pros & Cons of Building a New Home

Building your own house sounds like a dream—everything is brand new and exactly the way you want it. But you also have some drawbacks to consider.

Pros

• Customize everything from scratch.
• Incorporate the latest insulation, HVAC, and smart technology.
• You won’t have to worry about aging home problems for a long time.

Cons

• Custom builds can get expensive fast.
• New construction takes longer to complete than a standard remodel.
• Good land in desirable areas can be pricey or hard to find.

Types of Home Builders

The builder you choose plays a big role in both your budget and your ability to customize:

• Custom builders construct everything to your specifications. They have the highest cost, but the most flexibility.
• Semi-custom builders offer standard plans with some room to tweak layouts and finishes. They’re more affordable while still providing choices.
• Tract builders offer production-style homes, which are built quickly with few custom options. They’re the most affordable, but the least flexible.

Factors to Consider

How do you finalize your decision? Weigh these factors that go beyond costs.

Location

Do you love your neighborhood? Are you close to work, good schools, and great parks? Remodeling lets you keep the spot you already love, while new construction might mean moving farther away.

Timeline

Remodeling projects offer a faster completion time than new construction. Add permitting, inspections, and unpredictable supply chain delays to the equation, and a new build can take a year or more.

Age of the Home

Older homes often have hidden problems that complicate renovations. Still, if the structure is good, a renovation can breathe new life into a house with character.

Request a Consultation with DiFabion Remodeling

With over 25 years of home remodeling experience, DiFabion is ready to deliver thoughtful designs, clear communication, and high-quality craftsmanship.

As a full-service design/build firm, we handle everything from start to finish. Our award-winning team includes certified remodelers, in-house carpenters, and a collaborative process that makes remodeling less stressful and more rewarding.

Contact us today for a free in-home consultation, and discover the DiFabion Difference for yourself.