How Much Do Kitchen Renovations Cost in 2025?

Kitchen renovations are one of the most popular and expensive home improvement projects. In 2025, the cost of a kitchen renovation ranges from $30,000 to $50,000 or more. With prices on the rise, understanding what drives these costs is more important than ever.

I’ve experienced this firsthand. When I renovated my kitchen in 2020, I quickly realised how crucial it is to have an accurate budget. Since then, I’ve revisited the kitchen renovation market to see how costs have evolved. The changes are surprising and essential to know if you’re planning a renovation this year.

Whether you’re upgrading on a budget or investing in a full remodel, having up-to-date information will help you make informed decisions. Let’s dive into the real costs of kitchen renovations in 2025 and how you can get the most value for your investment.

The Average Cost of a Kitchen Renovation in 2025

Kitchen renovations are a major investment for homeowners. Costs have steadily increased in recent years. According to Houzz’s 2023 Houzz & Home Australia study, kitchens remain the top focus during renovations, with 33% of homeowners prioritising kitchen upgrades. The study shows the median cost of a kitchen renovation has now reached $30,000, driven by the demand for modern, functional, and stylish kitchens.

In 2025, kitchen renovation costs can range from $30,000 to $50,000 or more. According to hipages.com.au, the scope of the renovation, the size of the kitchen, and the materials chosen influence the final cost. Basic updates, such as benchtops replacements or cabinet refacing, fall into the $30,000 range. Larger budgets of $50,000+ often cover complete remodels with custom cabinetry, high-end appliances, and premium finishes.

These rising costs highlight the increasing value homeowners place on well-designed kitchens. Whether you’re planning a small update or a full renovation, budgeting carefully is essential. A kitchen renovation adds both function and long-term value to your home.

At Ross’s Discount Home Centre, we make kitchen renovations affordable. We offer high-quality products, including pre-assembled cabinets, durable tiles, and stylish fixtures. Our goal is to help you create a stunning kitchen without exceeding your budget.

How to Determine Your Kitchen Renovation Budget?

The median cost of a kitchen renovation provides a helpful guide, but it won’t apply to everyone. Your budget should reflect the size of your kitchen, the quality of finishes, and the scope of your renovation.

Rule of Thumb for Renovating a Kitchen

You should plan to spend around 3–8% of your home’s value on a kitchen renovation. For example:

• If your home is worth $900,000, allocate between $27,000 and $72,000 to avoid overcapitalising.
• If you prefer a per-square-metre approach, budget between $2,300 and $4,600 per square metre, as suggested by hipages.com.au.

Avoid Overcapitalising on Your New Kitchen

Keep your renovation budget realistic. Spending more than your kitchen will add in value to your home risks overcapitalisation. A well-planned budget ensures a balance between quality and affordability.

For more helpful advice on setting your budget, read our blog post ‘How to Calculate Kitchen Renovation Costs‘.

Breaking Down Kitchen Renovation Costs for 2025

When planning a kitchen renovation budget, breaking it down into clear categories makes it easier to understand where your money goes. The three main areas to consider are design, materials, and labour.

1. Kitchen Design Costs

Design costs typically account for 5–10% of your renovation budget. These costs may include:

• Architect fees (if you’re making major structural changes)
• Kitchen designer fees (for layout and functionality optimisation)
• Council permit application fees (if required for approvals)

However, you can eliminate kitchen designer fees entirely by taking advantage of Ross’s Discount Home Centre’s free services. Use our 3D Kitchen Planner to design your layout from the comfort of your home, or book a free in-store appointment with Michelle, one of our kitchen specialists. Michelle can help you create your dream kitchen using our pre-assembled cabinets and expert advice—all at no extra cost. With these options, you can save money and still achieve a professional-quality design.

2. Kitchen Renovation Material Costs

Material costs are the largest portion of a kitchen renovation budget, usually accounting for 65–70%. Here’s where the biggest expenses come from:

• Cabinetry: Often the most expensive item, consuming around 30%-40% of the total budget. Save significantly with Ross’s pre-assembled kitchen cabinets.
• Benchtops: Options like natural stone cost more, while laminate is a budget-friendly choice.
• Splashback Tiles: A small area with big design impact—perfect for incorporating trending colours.
• Flooring: Durable materials like hybrid flooring are practical and stylish.
• Tapware and Appliances: Costs vary depending on quality and features.
• Windows, Doors, Walls, and Ceilings: Often needed for a complete transformation.

Materials are one area where you can save without sacrificing quality. For example, choosing affordable yet durable options like Ross’s tiles or cabinets helps stretch your budget further.

3. Kitchen Renovation Labour Costs

Labour typically accounts for around 20% of the budget. Common expenses include:

• Demolition and removal: Costs for clearing out the old kitchen.
• Skip bin hire: Disposal of waste materials.
• Plumbing and electrical work: Costs increase if you move fixtures or upgrade systems.

Labour costs can vary significantly based on your project’s complexity. For simpler renovations, you can reduce labour costs with DIY installations, like our pre-assembled cabinets designed for easy setup.

Breaking your kitchen renovation budget into these categories makes it easier to allocate funds and prioritise. At Ross’s Discount Home Centre, we help homeowners save on materials while delivering high-quality products. Whether you’re replacing cabinetry, tiles, or fixtures, we have everything you need to create your dream kitchen without going over budget.

What Is the Most Expensive Part of a Kitchen Renovation?

The most expensive part of a kitchen renovation is typically the cabinetry. Cabinetry can account for 30–40% of the total renovation budget, depending on the size of the kitchen, the materials used, and whether the cabinets are custom-made or pre-assembled.

Why Are Cabinets So Expensive?

1. Materials Used: High-quality materials like solid wood or engineered timber cost significantly more than particleboard or MDF. Additionally, finishes such as gloss, matte, or hand-painted surfaces add to the cost.
2. Customisation: Custom cabinets are made to fit unique layouts or specific design preferences, which increases labour and material costs compared to pre-assembled or standard options.
3. Hardware and Features: Premium hardware, such as soft-close hinges, pull-out shelving, and custom organisers, adds to the overall expense.
4. Labour and Installation: Skilled labour is required to measure, design, and install cabinetry. This process increases costs, particularly for custom designs.

How to Save Money on New Kitchen Cabinets

New kitchen cabinets don’t have to strain your renovation budget. At Ross’s Discount Home Centre, our pre-assembled kitchen cabinets start at just $180 per cabinet, offering a stylish and affordable alternative to costly custom cabinetry. With our range of modular options—including base cabinets, wall cabinets, and pantry cabinets—you can design a functional and beautiful kitchen that suits your space and budget.

Using our cabinets, it’s possible to complete a full kitchen renovation for under $10,000, including cabinetry, benchtops, and installation. Made from HMR board with a durable, scratch-resistant 2-pack epoxy finish, our cabinets combine premium quality with exceptional value. They also include soft-close drawers and doors as standard, giving you a luxury feel at no extra cost.

For even greater savings, our cabinets are designed for easy DIY installation, so you can skip the high labour costs. Visit our showroom or browse online to explore our affordable kitchen cabinets and see how you can transform your kitchen without breaking the bank.

Other High-Cost Elements

While cabinetry typically takes the largest share of the budget, other expensive components include:

1. Benchtops: High-end materials like marble, granite, or quartz can cost between $500 and $2,500 per square metre, depending on the type and quality of the material.
2. Appliances: Premium appliances like built-in ovens, refrigerators, or dishwashers with advanced features contribute significantly to costs. High-end brands can increase the appliance budget by $5,000 to $15,000 or more.
3. Labour: As mentioned, labour accounts for 20% of the budget. Skilled tradespeople, including plumbers, electricians, and tilers, charge high rates, especially for complex installations.
4. Flooring and Tiles: Materials like hardwood, porcelain tiles, or hybrid flooring can cost $100 to $200 per square metre, depending on the material and the installation complexity.

Tips for Managing Kitchen Renovation Costs

To reduce the expense of cabinetry and other costly elements:

• Prioritise Must-Have Features: Focus on essentials like cabinetry, benchtops, and appliances. At Ross’s Discount Home Centre, we offer affordable pre-assembled kitchen cabinets and durable tiles to help you stay within budget.
• Use Durable, Mid-Range Materials: Opt for materials like laminate or engineered stone for benchtops to achieve style and durability without the premium price.
• Plan Layout Efficiently: Minimising layout changes helps reduce labour costs for plumbing, electrical, and cabinetry installation.
• DIY Where Possible: Handle tasks like painting or accessory installation to save on labour costs.
• Plan for Hidden Costs: Include costs for demolition, waste removal, permits, and labour in your budget.
• Use Free Design Tools: Take advantage of Ross’s 3D Kitchen Planner or book a free consultation with Michelle, our in-store kitchen specialist. Michelle can help you design your kitchen and maximise your budget—at no extra cost.

Conclusion

Kitchen renovation costs will continue to rise in 2025. The median spend is expected to range between $30,000 and $50,000. While these costs may seem high, careful planning and smart choices can help you create your dream kitchen within your budget. The final price depends on the size of your kitchen, the scope of your project, and the quality of the finishes.

In 2025, you can still achieve a functional and stylish kitchen on a budget. Choosing cost-effective options, like Ross’s pre-assembled kitchen cabinets, can significantly reduce costs without sacrificing quality. Whether you’re completing a full remodel or upgrading key elements, there are ways to maximise your budget.

As you plan your renovation, consider your needs, budget, and the long-term value a kitchen renovation can add to your home. Our guide to kitchen renovations in Perth will help you make informed decisions. With the right planning and the right products, 2025 can be the year you bring your dream kitchen to life. Visit Ross’s Discount Home Centre today to explore affordable and high-quality solutions for your renovation.