How Much Does a Renovation or Extension Cost in Melbourne in 2026?

Introduction

One of the first questions homeowners ask before committing to a renovation or extension is how much the project will cost. The answer depends on the size of the works, access to the site, heritage restrictions, finishes and structural complexity.

Typical Budgets

As a broad guide, smaller renovations can begin around $150,000–$300,000, while substantial extensions and full-house renovations often range from $600,000 to more than $1.5 million. Architecturally designed homes and heritage properties typically sit at the upper end of the range.

What Drives Costs?

Major cost factors include structural steel, foundations, heritage requirements, custom joinery, premium fixtures, labour, consultant fees and temporary accommodation during construction.

Inner-Suburb Challenges

Homes in Carlton, Fitzroy, Brunswick, Kew and Hawthorn frequently present challenges such as narrow laneways, limited access and strict planning controls.

Planning Ahead

The best way to avoid budget surprises is to engage experienced designers and builders early. Allow a contingency and obtain detailed pricing before construction begins.

Conclusion

Every project is different. Understanding the likely costs and constraints before work begins will help homeowners make informed decisions and achieve a better result.