How Much Should I Budget for My Kitchen Renovation?

• If you’re like most homeowners, you already know that renovating your kitchen will improve your home’s value. It is a big project though, and truth be told, it can be costly as well.

At Archant, we know there’s a lot to think about. The good news is you don’t have to tackle all the decisions at once.

In this article, we’ll detail what steps you should prioritise now, and what can wait for later. We will also take a closer look at cost, and how to best budget for your upcoming kitchen redesign.

What Will a Kitchen Reno Cost in New Zealand?

• Did you know that experts in the design field generally recommend you budget 5 – 15% of your home value towards the cost of your kitchen renovation?

That may sound like a small number, but here’s how it looks in today’s market. According to data sourced from REINZ and disclosed regionally the last recorded median home price in New Zealand was $875,000 in April 2022.

For a home valued at $875,000, the recommended budget for a kitchen renovation would be between $43,750 - $131,250. Don’t be alarmed if this number sounds shockingly large.

Three main considerations will sway the budget.

1. How much of the kitchen do you want to change?
2. What is the size of the space?
3. What quality materials do you want to use?

What Aspects of Kitchen Need to Change?

In a recent breakdown of renovation costs by Archipro, the average percentage each item will have on the overall budget is as follows:

• Cabinetry: 28%
• Installation & Labour: 18%
• Appliances: 15%
• Countertops & Backsplash: 11%
• Flooring: 7%
• Lighting: 5%
• Painting: 5%
• Windows & Doors: 4%
• Designer: 3%
• Plumbing: 3%
• Other: 1%  

These are estimates of course, but as you can see, the cabinetry represents a major chunk of the cost. For some homeowners, refinishing the cabinets could be a more price effective way to proceed. Likewise, if new appliances are not needed, you’ll save an additional 15%. These both represent big savings while still allowing you to renovate the space.

Renovation Cost Based on Kitchen Size

How many square metres is your kitchen? This number may offer a revealing look at how much your renovation will cost. In New Zealand, it’s not uncommon for customers to pay anywhere from $1500 to $4200 per meter.

In New Zealand, the average kitchen size measures about 15 square meters. This represents a renovation cost starting at $22,500 and $63,000 on the higher end. Like all the prices noted in this article, that’s an average.

What Benchtop Materials are Being Used?

With the benchtop and splashback weighing in at about 11% of the overall budget, you have a chance to save or splurge here. Before looking at the various options, ask yourself what the goal of the renovation is. Are you planning to live in this home for a long time, or is this a rental or sales opportunity?

On the lower end, you can opt for a laminate surface. While it won’t be as durable as other options, it will look great and provide good functionality. One of the better mid-range options is stainless steel, renowned for its toughness in even the busiest of kitchens. For those looking for exquisite style and the utmost in durability, then porcelain is hard to beat.

There are other options to consider like Dekton, Caesarstone, Quartz, Cement, and more. Each of these has pros and cons, all of which we discuss in the following articles:

• Porcelain vs Dekton: Which is the Best Benchtop?
• The Ultimate Cost Guide to Caesarstone Benchtops (Pricing)
• An Honest Review of the Best Kitchen Benchtops on the Market
• Porcelain vs Quartz Benchtops: A Pricing Comparison

What is the ROI on a Kitchen Renovation?

On average, a renovated kitchen can add 10% or more to the value of your home. With that kind of return on investment, it’s no wonder customers focus on the kitchen first.

With the recommended renovation budget at 15% of your home value, but an approximate ROI of 10% from a home sale, there is a slight disparity. If you’re not careful with your budget, you can easily over-capitalise. To play it safe, you may want to scale down your renovation budget to no more than 8% of the home value.

The kitchen is usually the focal point of a home. It’s where family and friends inevitably gravitate to when dining and entertaining. It also is the first thing potential home buyers look at when it comes time to sell.

Architect Andrew Minto summed this up nicely when he said, “A spectacular kitchen goes beyond economic value – it has the power to form an emotional connection with a buyer.”

Trusted Experts by Your Side

By now, we hope you have a better idea of what to expect with the cost of your kitchen renovation in New Zealand. If you’re ready to take the next step, we encourage you to talk with us. The Archant team of design experts have assisted customers all over New Zealand with their kitchen renovation questions.

From routine kitchen updates to the most detailed layouts, we love to help homeowners bring their vision to life. Kitchen renovations don’t have to be a scary process. With our free one-on-one showroom consult appointments, you can speak with a professional about your specific project.