What is the average cost of a kitchen renovation in 2025?

What is the average cost of a kitchen renovation in 2025?

In 2024, kitchen renovations continued to be a top priority for many Victorians, especially with the trend towards more functional and enjoyable living spaces. With more now working from home, homeowners are focusing on creating kitchens that are not only aesthetically pleasing but also functional to suit modern lifestyles.
Interestingly, while budgets have tightened, spending on kitchen renovations has remained steady as homeowners seek smart, cost-effective ways to improve their homes.

What does 2025 look like?

Despite rising interest rates and the higher costs of materials, kitchen renovations are seen as a wise investment. According to the HIA Kitchen and Bathroom Report (2024), affordability and value have become key factors for households planning renovations.

Economic uncertainty has made consumers determined to get the best value for their money. While the Master Builders Association noted a 2.9% dip in residential building activity this year, kitchen renovations continue to hold strong.

Let’s explore the expected costs of a kitchen renovation in 2025.

Typical Kitchen Renovation Costs in 2025

Based on data from HIA, the estimated costs for an average kitchen renovation is $35,800.

Small Kitchen: $15,000 – $30,000
Mid Size Kitchen: $25,000 – $40,000
Large/Premium Kitchen: $35,000+

At Kitchen Shack the estimated 2025 renovation costs, including cabinetry and benchtops are $13,000.

Small Kitchen: $8,000 – $12,000
Mid Size Kitchen: $12,000 – $20,000
Large/Premium Kitchen: $25,000+

These figures include design and supply, with trades adding additional costs.

Kitchen Shack Average Cost breakdown:

Kitchen Cabinets: $8,000 – $15,000
Kitchen Benchtops: $3,000 – $5,000
Trades: $5,000 – $7,000
Appliances: varies based on brand choice

With Kitchen Shack’s reputation for quality kitchens at warehouse prices, it offers the perfect solution for budget-conscious homeowners. Known for providing high quality kitchens at warehouse prices, Kitchen Shack makes dream kitchens accessible without the huge price tag. Kitchen Shack’s Lowest Prices Guaranteed* ensures customers receive the best deal, beating any lower price for the same design, product, and service by 5%. This commitment allows customers to enjoy affordable quality without compromising on quality or service.

Planning Ahead for Your Kitchen Renovation

Budgeting is essential for any renovation and Kitchen Shack encourages homeowners to keep these tips in mind:

Focus on standard cabinetry: it’s a more cost effective choice that doesn’t sacrifice quality.

Local manufacturing: Melbourne based production reduces lead times and logistics costs, further ensuring competitive pricing. Choosing a locally manufactured kitchen will have a lower environment impact than one imported from interstate or overseas.

Pre-assembled cabinetry: this option saves on costs and time, making it easier for both DIY enthusiasts and installers. Pre-Assembled will ensure a quicker and more seamless installation process, which can significantly reduce the overall renovation time and costs.

Summary: Looking ahead

As many economists predict an eventual drop in interest rates, consumer confidence in kitchen renovations will grow even further. Kitchens today are not just functional but central hubs for work, family gatherings, and daily living. With interest rates anticipated to drop, it’s likely more Victorians will jump on board the kitchen renovation trend, especially with companies like Kitchen Shack offering quality kitchens at warehouse prices.
Whether you’re renovating for yourself or with the goal of selling your home, Kitchen Shack ensures you can achieve a stylish, functional kitchen without overspending, adding both comfort and value to your home.

Book your free in-store design to achieve your budget friendly kitchen renovation today!