Everyone wants to get the best deal on a quality kitchen, but most people don’t know where to start when it comes to budgeting for their kitchen remodel. In this post we will look at some national cost studies, share our own pricing guide, and discuss financing options.

The National Numbers

Let’s start by noting that this post is focusing on major renovations, meaning replacing most or all cabinets, counters, appliances, and using a contractor to do the work. Most of the sources we found also listed ‘mid range’ and ‘upscale’ in different categories. For an upscale renovation you can expect custom cabinetry and high end appliances like Sub Zero and Wolf, two items which will drive the cost more than any other category.

The 2024 Cost vs Value Report by Remodeling Magazine has the average cost in the Mid Atlantic region for a major kitchen remodel at $80,000 for ‘mid range’ and $158,000 for an ‘upscale’ kitchen.

The Mortgage Reports 2025 kitchen remodel guide found the national average major kitchen remodel to cost between $70,000 - $130,000.

The kitchn.com has the average high-end kitchen remodel price range at $60,000 - $300,000.

Airy Kitchens Guide to Pricing

At Airy Kitchens, we design and manage a mix of mid-range and high-end kitchens in Philadelphia and the Main Line. Our pricing more closely reflects local labor and cabinetry prices in the mid to high kitchen remodel sector. Projects typically include opening walls, updating plumbing and HVAC, and sometimes incorporate a mudroom or dining room. Our average kitchen project total cost in 2024 was $163,291.

After hearing all of these big numbers, you’re probably ready for more detail about how they add up. Understanding the smaller expenses is a great way to budget and save for your project. Here is a handy cost guide we share with our clients:

For our guide we divide our kitchens into basic, mid range, high end, and deluxe groups. We consider a basic kitchen to include ready-made cabinets, appliances like Whirlpool, and low price hardware and materials (granite instead of quartz). Our mid-range pricing includes simple custom cabinets or detailed ready-made cabinets with lots of organizers, mid range appliances like Bosch or GE Cafe and higher quality materials and lighting. High end kitchens include detailed custom cabinetry (think paneled appliances and cabinets that feel like furniture), luxury lighting, and the best counters and appliances. A deluxe kitchen will fit a grand home with finely crafted materials, custom millwork, and additional appliances like full height wine refrigerators. Note that the total costs don’t take into account opening walls, updating floors, or changing windows and doors (prices listed below totals). Many clients who are completing a renovation choose to add these items.

Financing Your Remodel

Okay, you’ve heard about the cost and (of course) it’s way more than you expected. So what are your options? Let’s look at five options:

Home Equity Loan (second mortgage)

Typically banks loan up to 80% of your homes value, but can loan up to 90% for a higher rate. Typically banks only consider the homes current value, not the value after the renovation. Loan term can be a full 30 years like a standard mortgage, but home owners typically choose a shorter term which gets them a better rate . Unlike a refinance, there are no considerable closing costs.

Home Equity Line of Credit (HELOC)

This loan has similar rates to a home equity loan, it can also be up to 80-90% of your total home value, and has no considerable closing costs. What makes this choice different is more flexibility. Your bank gives you an amount that you can take out, but you take the money as you need it and you don’t pay interest on the amount you haven’t drawn yet. This is a great option for projects that have a long timeframe and projects that may need additional funds. Consider taking out a larger amount loan to get a better rate even if you don’t need to use all the funds.

Home Improvement Loan or Construction Loan:

Many banks base the loan on ‘as completed value’, (value after the renovation is complete) for this type of loan, which means you may be able to borrow more. However, the bank is more involved in the whole process. They usually put the money in an escrow account and have a consultant monitor completion points and payments. This might slow the construction process down. If you are looking to purchase a fixer upper and take out a mortgage and renovation loan together, this may be the loan for you. The bank will package the mortgage and renovation loans together. Banks can also package this as a line of credit, but in the end it converts to one loan with one payment.

FHA 203K

Similar to a construction loan, the FHA 203K is geared toward the purchase of a fixer upper (often uninhabitable) and the bank is involved in the process. But now the government is involved too. Sounds fun, right? This type of loan is not really supposed to be for a luxury renovation as much as a functional or livable project. More hoops to jump through will get you a better rate and the ability to borrow up to 96.5% of the ‘as completed value’. This is not available to an investor, only to homeowners and non profits.

Refinance

Home owners may want to refinance their mortgage to fund their renovation. This is a good option if your current loan has a high rate or if you want to change the length. Unlike a home equity loan, refinancing comes with closing costs. All financial information in this article is not financial advice from Airy Kitchens. Homeowners should check with a qualified loan officer to make the best decisions for their home projects.

Timeframe: A home equity loan or line of credit typically takes four to five weeks. Meet with your lender before bringing on a designer or contractor so you know how much you can afford.

Other Tips: Don’t quit your job or retire before you take out the loan. Most of these loans are not as difficult as getting a mortgage, we suggest that home owners be careful not to do a lot of credit checks before applying because it can drop your credit score.

If you are thinking of remodeling your kitchen or bathroom and would like to contact an Airy Kitchens designer, please visit our contact page.