How much does it cost to renovate a house in Los Angeles?

Thinking about renovating your home in Los Angeles is exciting. But the costs are a huge source of stress. You get conflicting numbers, and it's impossible to know what's real.

A full house renovation in Los Angeles can cost anywhere from $100 to over $400 per square foot. The final price depends on the project scope, material quality, and labor costs. A smart plan focuses on managing these three key areas to control the budget.

In my work helping clients source building materials from China, this is a common conversation. The cost to renovate in a place like LA isn't just one number. I see it as three layers of cost. First, you have the hard costs: materials and labor. Second, there are the hidden costs like permits and design fees. Third is the lifestyle cost, like renting another place if the project has delays. Most people only focus on the first layer and get surprised by the other two. Understanding all three is the only way to build a realistic budget and avoid a lot of stress. Let's break it down so you can plan your project with confidence.

How much does it cost to remodel a 2000 sq ft house in Los Angeles?

You own a 2000 sq ft house and need a realistic budget. But every contractor gives you a different price, making it hard to compare and plan your finances effectively.

Remodeling a 2000 sq ft house in Los Angeles typically costs between $200,000 and $500,000. A cosmetic update will be on the lower end, while a full gut renovation with high-end finishes will easily exceed the upper end of this range.

A 2000 sq ft house is a big project, and the price varies wildly based on what you want to do. Let's dig into the three cost layers. The biggest one is hard costs. In LA, skilled labor can be $50 to $120 per hour. Materials from local showrooms are also expensive. This is where a global supply chain strategy makes a huge difference. For a commercial buyer like Michael, sourcing kitchen cabinets, bathroom vanities, flooring, and windows directly from factories in Foshan can cut the material budget by 20-40%. Next are the hidden costs. For a project this size, permits, inspections, and architectural plans can easily add $20,000 or more. Some contractors leave these out of their initial quote to appear cheaper. Finally, if a project this size gets delayed by two months, you could spend over $10,000 on extra rent. A well-managed project with a controlled supply chain minimizes these delays.

Sample Budget Breakdown: 2000 sq ft LA Remodel

Is $100,000 enough to renovate a house?

You have a $100,000 budget and a whole house that needs work. You are struggling to figure out if you should tackle everything at once or just focus on a few key areas.

Yes, $100,000 is enough for a significant renovation, but probably not for an entire house in Los Angeles. It is a realistic budget for a high-quality kitchen and two bathroom remodels, especially if you source materials wisely.

A $100,000 budget requires a strategic approach. It forces you to focus on the areas that add the most value and daily enjoyment. A mid-range kitchen renovation³ in LA can easily cost $40,000 to $70,000. A primary bathroom remodel runs about $25,000 to $40,000. As you can see, that $100k gets used up very quickly. This is where smart sourcing becomes your most powerful tool. I had a client with this exact budget. Instead of buying standard cabinets from a big-box store, we worked together to design and import a full set of custom kitchen cabinets⁴, three bathroom vanities, and all their tile directly from Foshan. This single move saved them nearly $30,000 on materials. That saving allowed them to afford higher-end appliances and allocate more money to their local contractor for quality installation. So, while $100k may not be enough for a full "down to the studs" remodel, it is more than enough to completely transform the most important rooms in your house.

What is the 30% rule for renovations?

You keep hearing about a "30% rule" for budgeting renovations. This sounds like an easy formula, but you are not sure what it covers or if it is a reliable guide.

The "30% rule" is not a single rule but a general guideline for two things: a contingency fund for unexpected issues (10-20%) and soft costs like design, permits, and management (10-15%). It is a way to budget for costs beyond materials and labor.

People get confused by this rule. It is not about adding a flat 30% to your contractor's quote. It is about planning for the unpredictable and the non-physical parts of the project. Let's break it down. Around 15% should be set aside as a contingency fund⁵. When you open up walls in an old house, you might find bad plumbing or old wiring that needs to be fixed. This fund covers those surprises so your project does not stop. The other 15% covers all those hidden or soft costs I mentioned earlier. This includes the fees for architectural drawings, structural engineering reports, city permits, and inspection fees. In my experience, great planning can reduce the need for a huge contingency fund⁵. When we manage the whole supply chain for a client, we give them a fixed cost for a huge portion of their project—the materials. This eliminates a massive variable and reduces the risk of cost overruns⁶ from that part of the budget.

Is it cheaper to renovate an old house or buy a new one?

You are at a crossroads. You can buy a fixer-upper and renovate it, or buy a new construction home. The huge unknown of renovation costs makes the decision feel like a gamble.

Renovating an old house can be cheaper if it has good structural integrity, but it comes with a risk of unexpected costs. A new build offers price certainty and modern systems, but often at a higher total cost and with less character.

This is the ultimate "it depends" question. The financial winner is determined by your ability to control the renovation budget. An old house might have a lower purchase price, giving you a budget for renovations. If the foundation, roof, and electrical systems are in good shape, you are in a great position. You can then focus your budget on the finishes—the kitchen, bathrooms, and floors. This is where working with a direct-sourcing partner like Veyra Luxe can completely change the math. By saving tens of thousands of dollars on high-quality finishes, you can make the renovation route far more affordable than buying new. A new build gives you peace of mind with warranties and no surprises, but you pay a premium for that certainty. You also miss out on the character and unique details of an older home. The best choice depends on your tolerance for risk and your willingness to manage a project.

Renovate vs. Buy New: A Quick Comparison

Conclusion

Renovating in Los Angeles is expensive, but manageable. By understanding the three cost layers and smartly sourcing your materials, you can control the budget and build real value into your home.