The True Cost of a Home Remodel in Chicago — And What You Can Do to Stay on Budget

Red Mug Construction

Thinking about remodeling your Chicago home? Whether you’re updating a tired kitchen, opening up your floor plan, or restoring a historic bungalow, remodeling is an exciting opportunity to make your space feel more like you. But let’s be real — between permits, material costs, and unexpected surprises, the cost of a home remodel can add up fast.

At Red Mug Construction, we believe in transparency from the start. Here’s what you should know about the true cost of remodeling in Chicago and how to stay on budget without sacrificing quality.

What Does a Remodel Really Cost in Chicago?

The cost of a home remodel depends on the size of the project, the condition of your existing home, and the level of finishes you’re after. But here’s a general breakdown based on our experience:

• Kitchen Remodel: $40,000 – $100,000+

• Bathroom Remodel: $20,000 – $50,000

• Full-Home Renovation: $150,000 – $400,000+

• Second-Story Addition: $250,000 – $500,000+

• Basement Remodel: $40,000 – $120,000

• Cosmetic Updates (flooring, paint, lighting): $10,000 – $50,000+

  
  

These ranges may seem wide — and that’s because every home and homeowner is different. Some clients want custom cabinetry, others are reconfiguring walls and plumbing. Older Chicago homes can also come with surprises behind the walls which can affect the budget.

Factors That Affect Remodeling Costs

Age and Condition of the Home: Chicago’s housing stock is beautiful, but many homes are 80-100+ years old. This often means electrical or plumbing upgrades are needed to bring things up to code.

Permitting and Zoning: Chicago’s permit process is designed to ensure safety and quality, but it can be time consuming and come with fees that impact your budget and timeline. (Luckily, we take care of all of that for you.)

Scope Creep: It’s easy to start adding on “just one more thing” once construction starts. That’s why we help you define your scope — and stick to it.

Material Choices: From tile to countertops, there’s always a more expensive option. We’ll help you prioritize where to invest and where to save.

Labor and Contractor Experience: You get what you pay for. Hiring cheap labor might save you money upfront, but poor workmanship will cost you more down the road. Red Mug only works with trusted subcontractors and tradespeople we’d use in our own homes.

How to Stay on Budget Without Cutting Corners

We know cost is always top of mind, so here are a few ways we help clients stay on track:

Set a Realistic Budget (and Pad It Slightly)

We recommend setting aside 10–15% of your budget for contingency. Unforeseen issues are almost always part of the process—especially in older homes.

Prioritize Must-Haves vs. Nice-to-Haves

Before we start designing, we help you list what’s essential, what’s flexible, and what you can live without.

Avoid Mid-Project Changes

Every time you change your mind, it can delay the schedule and increase costs. We finalize details before demo day to minimize surprises.

Choose a Design-Build Firm

Working with one team from start to finish means fewer miscommunications, clearer expectations, and tighter control over budget and schedule.

Be Transparent with Your Contractor

If you tell us your budget, we can help guide you toward smart decisions that give you the most value for your money.

Building Something That Lasts

Remodeling is an investment in your home, your lifestyle, and your future. At Red Mug Construction, we don’t just make things look good — we make them work for the long haul. Whether you’re restoring a vintage flat or adding a modern twist to a classic bungalow, we’re here to guide you through the process from start to finish.

Have questions or ready to talk about your project? Drop us a line! Let’s build something great together.