How much does an average bathroom renovation cost?

Whether you’re getting ready for the day ahead, or relaxing in a warm shower or bath when the day is done, the bathroom is one of the most important spaces in your home.

There are many reasons you may decide to renovate your bathroom. You might need a simple upgrade to add some new fittings and fixtures, or you might want to go all out with a major cosmetic overhaul. Either way, it is important to consider your budget and the average cost of bathroom renovations when deciding on the extent to which you want to update your bathroom.

With inflation still high in Australia, cost of living pressures are affecting everyone, so the cost of both labour and materials for a bathroom renovation is likely to be a lot pricier than if your last redo was a few years ago.

How much does a bathroom renovation cost in Australia?

According to the most recent figures from the Housing Industry Association of Australia, the average cost of bathroom renovation in Australia sits at around $26,000. The cost, however, can vary significantly depending whether you opt for a basic or more extensive renovation, and the quality and cost of materials you use. The HIA says that, while $26,000 is the average cost in Australia, a bathroom redo could cost anywhere from $8,000 to $35,000 or more.

What are the three tiers of bathroom renovation and how much do they cost?

Broadly speaking, there are three ways you might choose to renovate your bathroom—depending on your needs and budget. You might choose a basic, low-budget renovation, push the boat out a little further with a standard one, or go all out on a premium option. Each of these three tiers comes with increasing costs: according to Hipages, basic renovations can start from just $5,000 while more high-end or complicated renovations can run you $30,000 or more.

Basic bathroom renovation: $8,000 to $15,000

The budget tier might involve a simple cosmetic renovation of a smaller space, using low-cost fittings and fixtures. Hipages says this kind of renovation will generally mean keeping all your plumbing and electricals in place, and choosing budget-friendly options such as large, durable tiles, a framed shower screen, a standard back-to-wall toilet and a floor-mounted vanity.

Standard bathroom renovation: $15,000 to $35,000

The standard tier might involve a renovation of an average-sized space, using mid-range fittings and fixtures. Hipages says that with this kind of renovation, you may be able to make some alterations to the location of plumbing and electricals, but not major ones. You may also be able to choose fancier options such as free-standing bathtubs and vanities and frameless-style shower screens.

Premium bathroom renovation: $35,000+

The premium tier might include a complete overhaul of a bathroom, with major changes to the locations of plumbing and electricals, and high-quality fittings and fixtures. Options here can include such things as wall-hung vanities, frameless shower screens, in-wall cisterns and more opulent and expensive tile choices.

How much should you spend on a bathroom renovation?

The amount you spend on a bathroom renovation will be a matter of personal choice and taste, but there are some important questions to ask yourself:

• Will you be overcapitalising? If you choose to spend a large amount of money on your bathroom but it does not add value to your home, you may be overcapitalising. Canstar has a list of ways to add value to your home by renovating, which includes some tips for tackling bathrooms.

• Will you need to borrow money? You may wish to finance a bathroom renovation by paying cash from your savings, or alternatively, you might take out a loan or dip into your existing equity, borrowing against the value of your home. With uncertainty as to whether interest rates in Australia will fall or we’ll see further hikes, you may wish to exercise caution when borrowing money for a job such as a renovation.

• What do you want out of your home? If you are planning on turning your home into a rental property, you may wish to undertake a basic renovation that will make a bathroom functional and clean without being overly opulent. If you are planning on remaining in your home long term, and can afford a more luxurious renovation, then you may be happy to splash out on something a little fancier.

If you are planning on renovating a bathroom or even your whole house, it may also be advisable to obtain quotes from multiple builders, to see if they all line up with your expectations, and ensure you are not overpaying.

Along with cost, bear in mind that more extensive renovations could take longer to complete, potentially leaving your bathroom out of action for a lengthy period, so it could be worth factoring that possible inconvenience into your decision.

What factors can influence the cost of a bathroom renovation?

The price you pay for a bathroom renovation will depend on a number of factors, including the size of the space, the extent of the structural changes required and the kind of fittings and fixtures you choose, as well as the materials you use and whether you purchase them separately or through your builder.

Size of the bathroom

The size of your bathroom can be one of the major costs of renovation. Generally speaking, the larger the space, the greater the price you’ll pay for labour and materials. Given that bathroom spaces are wet areas, almost all of them will have floor tiles, and you may even choose to install them on the walls, for waterproofing, aesthetic appeal, or both.

According to Hipages, tiles can be one of the major drivers of expense when it comes to a bathroom renovation. If you have a larger space, opting for more expensive tiles can increase your budget significantly, and you’ll also need to keep in mind that tilers will typically charge a set price per square metre to install them.

Extent of the renovations required

If you are opting for a major bathroom overhaul, you will need to factor in the costs of such things as demolishing the old bathroom and disposing of materials. Likewise, if you wish to change the layout of the bathroom by moving windows, plumbing fixtures or electrical points, these things, along with installing new waterproofing and laying new tiles, will add to the costs.

On the other hand, a more basic renovation, where fixtures and fittings stay where they are and you only choose to replace or upgrade a few key elements, may cost less.

Materials, fittings and fixtures

The type and quality of materials, fittings and fixtures you choose will also influence the cost of a bathroom. If you opt for high-end materials with luxurious finishes, you will likely end up paying more. According to Exclusiv Bathrooms, high-end bathtubs, vanities, shower enclosures and toilet suites can be among the biggest drivers of cost in terms of materials. Similarly, if you choose to install features such as under-floor heating, this can push the cost of a bathroom renovation up.

Opting for more basic fittings and fixtures may cost less, but it is also important to keep in mind that quality materials may be more durable, and some extra upfront cost may save you from the cost of replacing an item down the line.

Your arrangement with your builder

When undertaking a bathroom renovation, there are two main sets of costs that you will need to keep in mind – you will need to pay for the work itself, via your builder and their team of tradies, and you’ll need to pay for the costs of materials.

These costs may be separate, or your builder may suggest an arrangement wherein you purchase materials through them, to take advantage of a wholesale discount. The details around whether you can choose to do this and how it works will depend on your individual builder.

How can you finance your bathroom renovation?

Before you dive into the work, you’ll need to think about how you plan on paying for your renovations. Depending on your situation, your options could include:

• Paying out of your own pocket, such as savings, a mortgage offset account or redraw facility, if you have one on your home loan

• Refinancing your home loan

• Starting a line of credit loan

• Applying for a new loan – you may be able to use a personal loan or a construction loan, depending on your personal circumstances.

Bear in mind that taking out or refinancing a loan can come with additional costs, such as interest and fees, so it’s important to factor these into your decision. If you aren’t sure which option would be most suitable for your needs, it could be worth seeking professional financial advice.

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