Categorizing a home improvement project under “home remodeling” or “home renovation” might seem confusing. Both imply that you’ll be improving your home to better fit your needs and make the space more desirable. And many times, these terms are used interchangeably, further confusing homeowners while they perform research on their desired project. But they’re not interchangeable, and each has its own meaning.

We get it. It is confusing. But in this article, we’ll explore what distinguishes the two terms so you’ll be able to make a better decision on home remodeling vs home renovation and which is right for you.

Defining Home Remodeling vs Home Renovation

Before we go too far, let’s run through some quick definitions. The terms “remodel” and “renovate” each refer to distinct types of home improvement projects:

Home Renovation

The term “home renovation” typically refers to the process of updating or restoring an existing space within a home without changing its structure or core function. For example, renovation projects might include replacing plumbing fixtures, refinishing floors, swapping out light fixtures, or replacing moldings. These simple renovations improve the look and functionality of the room without altering its layout or main purpose.

Home Remodeling

A “home remodeling” project is usually a more involved project that involves making extensive changes to the space, such as altering the structure or layout, or changing the space’s purpose altogether. For instance, home remodeling projects might include removing a wall, building an addition, or turning a dining room into a spare bedroom or TV room. Remodeling typically implies big changes, whether it’s the purpose or structure.

Examples of Remodeling vs Renovation

Here are a few examples of the types of projects that fall into each category.

  • Remodeling Examples:
    • Converting a basement into a living space or guest bedroom
    • Creating an open-concept floor plan by knocking down walls
    • Expanding a small bathroom by moving walls or adding fixtures
  • Renovation Examples:
    • Replacing outdated plumbing fixtures in a bathroom
    • Refinishing hardwood floors throughout the home
    • Updating the paint and light fixtures in the dining room

Bright white living room renovation project with natural light.

Key Differences Between Remodeling and Renovation

Definitions are helpful, but they might not paint the whole picture. The following areas are where some of the biggest differences between the two exist.

1. Scope of the Project

  • Remodeling: Remodeling projects have a larger scope. They often require changing the room’s physical structure, including knocking down walls to create an open space, or a major kitchen remodel including layout changes. These projects often require planning, engineer-approved plans, and professional contractors.
  • Renovation: Renovation scopes are typically smaller and involve mostly surface-level upgrades. They’re not changing the room’s layout or purpose, so projects like refinishing cabinets, upgrading flooring, or updating fixtures would fall into this DIY-friendly category.

2. Impact on Budget and Property Value

  • Cost: Due to the scale of these projects, remodeling is generally more costly than renovating. This can be due to the labor involved, the amount of materials, and the timeline. A full remodel may cost tens of thousands of dollars, especially if it requires moving plumbing or wiring. A renovation, on the other hand, will often be possible with a smaller budget.
  • Return on Investment (ROI): While both options can increase your home’s value, remodeling projects typically deliver a higher ROI (as long as they’re chosen strategically). A remodeled kitchen or bathroom, for instance, can add major value, while simple renovations can boost appeal without dramatically changing the home’s market price.

3. Requirements for Building Permits

  • Remodeling: Structural remodeling requires a building permit, and these projects must adhere to local building codes. For example, if a remodel project involves removing load-bearing walls or modifying the floor plan, homeowners must make sure they’re in compliance with regulations to ensure the safety of the project.
  • Renovation: Minor renovations, such as replacing light fixtures or painting, often don’t require building permits. It’s still advisable to check local regulations, especially if the home renovation project involves work performed by electricians or plumbers.

4. Structural vs Cosmetic Changes

  • Remodeling: Structural changes are the hallmark of remodeling. As mentioned, this might involve reworking the layout, removing load-bearing walls, or adding a new feature such as a fireplace that requires substantial reconfiguration.
  • Renovation: Renovations are usually cosmetic changes meant to update or repair, such as installing new flooring, replacing countertops, or updating the plumbing fixtures in an outdated bathroom. These projects are typically straightforward and might even be DIY-friendly for some homeowners.

Choosing Between a Remodel and a Renovation

Choosing whether you need to remodel or renovate does involve a few considerations. Here are the points to consider when choosing one or the other:

  • Long-Term Goals: If the goal is to create a home that will fit your needs and lifestyle for the foreseeable future, a remodel is typically the best option. For example, if your family has grown and you need another bedroom, renovating existing spaces probably won’t do, so a remodel is in order. But if your existing layout and space work for you, a renovation to freshen things up is usually fine.
  • Budget: Remodeling involves more time, materials, and the labor of professional contractors. This will invariably cost more than a simple renovation project. If your realistic budget doesn’t allow for a full remodel now, renovate the space and save up for a large project down the road.
  • Timeline: Remodeling takes a lot longer than renovating for several reasons, but mainly because of the scale of the project. If there are timeline constraints, it’s better to hold off on the remodel and opt for the renovation if you can.
  • Impact on Property Value: If the primary goal is to increase property value, a remodel is the best option. These projects are long and expensive, but they have the best chance of increasing your property value (again, if selected correctly). Renovations might offer a similar ROI, but because they’re much less expensive, they won’t increase the value of the property much.

Unfinished attic with exposed beams and roofing materials in renovation process.

Tips for Successful Home Improvement Projects

Whether you’re choosing to renovate or remodel, home improvement projects can be tricky. The following tips will help you survive your project and reach your goals.

Plan Your Budget

Before you start your project, be sure to plan a comprehensive and realistic budget. You need to know how much you’re able to spend comfortably, and add at least 10% in contingency funds in case something pops up.

Once you develop your budget, make sure to stick to it. That might mean making concessions if certain aspects of the project are more expensive than originally planned or if an issue arises.

Consider Local Building Codes

Make sure to check with your local building department to ensure that your project will meet building codes. Building departments and inspectors can be incredible resources when it comes to renovating and remodeling, ensuring your project is safe, legal, and up to code.

Choose the Right Contractor

For some renovations, a bit of DIY gumption isn’t a bad thing. But for more intense projects, make sure to hire the right contractor. We suggest sticking with an experienced contractor with a track record of completing renovations and remodeling projects in your area. Make sure to ask for references, as well.

Prioritize Goals

Remember to keep an eye on your primary goal. If the goal is to improve the home’s value, stick with projects like kitchen and bathroom remodels. If the primary goal is to age in place, remodel or renovate with the goal of improving quality of life. If the plan is to simply renew your home office, don’t get swept away with complex changes and stick to paint and flooring. Whatever the primary goal is, keep it in mind when making tough decisions.

Stay Realistic

While both renovation and remodeling have benefits, they come with cost and time considerations. You need to be realistic about the impacts they’ll have on your life and family. Choose the option that best fits your needs, budget, and desired outcomes, but make sure you choose the one you’re prepared to handle and see through to completion.

Let Pro Home Improvement Guide You on Your Project Journey

Whether you’re renovating or remodeling, Pro Home Improvement has you covered. Our expert renovation and remodeling teams can help you plan and carry out your home improvement projects, ensuring you love the result. If you need help with your next home project, make sure to contact Pro Home Improvement today.