Guide To Apartment Renovation Costs in NYC

One of the first questions we usually get asked before embarking on a construction project is “how much will my apartment renovation cost?” Our goal for every project is to make the renovation process as seamless as possible, even including the discussions about construction budget. We have found that working with a budget in mind opens up possibilities for making the project better, rather than limiting us. (Can you tell which kitchens in our portfolio are “Ikea Kitchens?” Hint…see photo above!)

Although there are a lot of factors impacting apartment renovation pricing in NYC, we have found that being transparent with our costs early in the process helps our clients make thoughtful decisions about design, and results in a better project. With this in mind, here is a breakdown of typical construction costs for a typical condo or co-op renovation in NYC.

There are a few methods that we use for pricing projects, depending on the status of project planning. In the early phases (called Programming, Concept, or Schematic Design), we would typically use a “cost-per-square foot” method, because not enough information is known about the project to make an accurate estimate. Materials and finishes have not been selected, and the final scope of work has not been determined.

In the later phases (Design Development, Construction Documentation) we would prepare a “Controls Estimate” that entails a detailed, line item breakdown (by trade) of all estimated costs for the project. By this point, all of the main electrical, plumbing, and mechanical scope has been defined, and we would be close, if not final, with all of our selections for plumbing fixtures, tile, flooring, hardware and all of those finishes that impact construction costs.

As of May 2024, using the “cost per square foot” method, most of our current projects are landing in the $300-400 per square foot range for small or medium scale and complexity projects, and $400-600 per square foot for bigger scale and higher complexity gut renovations.

This means that a 1,000 sf small “interior only” renovation would likely land in the $300-400K range, and a 2,500 square foot “gut renovation” of an apartment combination would probably land in the $1M-$1.5M range.

*Note: these numbers are based on apartment renovations in condos and co-ops that would require architectural services due to layout changes, and not renovations that are simply cosmetic only (painting, new flooring etc.)

Though the “cost per square foot” method is helpful as a starting point, it does have limits, particularly with projects that have an “economy of scale” (bulk orders of materials, streamlined project delivery, or thoughtful selections of finishes and fixtures.

Below is a sample “budget breakdown” for a typical condo or co-op renovation in NYC. Though each apartment and client is different, hopefully it’s helpful as an example outline of our transparent methodology and pricing model.

Before the detailed construction pricing can begin, it’s always important to engage an architect. When it comes to pricing an apartment, having a good architect involved can save you money by helping you avoid mistakes and making thoughtful decisions about what to do with the space based on experience.

At Rauch Architecture, we typically set our fees as a percentage of the initial estimated “cost-per-square foot” budget.

For most small-to-medium condos and co-op renovations, we have been landing in the $30-50K range for a “full service” scope.

After the planning process, the General Contractor (or in our case, the Design-Builder) is the team that makes the project happen. At Rauch Architecture, we have our own in-house team of construction managers, carpenters, and foreman, who typically do the day-to-day carpentry and framing work, while also coordinating the work of all of our subcontractors. Plumbers, electricians, HVAC mechanics, millworkers (cabinet-makers), stone and glass installers, and tile installers are the typical subcontractors we employ on our projects, and each of those specialty trades need to be coordinated by a General Contractor team on site every day.

The costs associated with a General Contractor can be broken down into a few different categories: General Labor, and Overhead, Insurance, and Profit (sometimes just called the Design-Builder or Construction Management Fee).

This is perhaps one of the biggest costs we see in apartment renovations in NYC. Highly skilled foreman and carpenters are typically paid around $50-60/hr. A typical job would have at least one carpenter or foreman dedicated to the project full time, so the labor costs, after factoring in payroll taxes are typically around $10K per month.

The second biggest line item cost in construction, by far, is the construction insurance costs. The premiums on a typical construction insurance policy required by Co-ops and condos can be as much as $180K per year.

A typical policy required by most Co-ops in NYC would be a $2M General Liability with a $5M Excess liability (or umbrella coverage). On top of this, Workers Compensation and Disability insurance is required. The policy requirements can be found in your condo or co-ops alteration agreement.

As design-builders, we pro-rate our insurance costs as a percentage of revenue between the construction projects we are working on, but we would typically land in the $5-10K per month for insurance coverage.

Overhead and Profit is what keeps the lights on for a General Contractor. This is how we pay for our miscellaneous business expenses, office rent, business development costs, and all of the other things needed to keep our projects running. These fees also allow us to have a a “cushion” to plan for the unexpected.

When we are building one of our own projects, we would charge the Overhead and Profit as a simple monthly “Construction Management Fee” that lands in the $10k per month range.

At Rauch Architecture, after the design and general construction costs listed above, we would essentially pass along the costs of all of our subcontractors. While most other General Contractors will add hidden markups or fees on top of their subcontractors, we share all of our subcontractors’ proposals directly with our clients. We prefer complete complete transparency on both the design and construction side of a project.

Below is a typical sample breakdown for a 2 bedroom 2 bathroom condo or co-op renovation with medium complexity and not expensive finishes and fixtures:

Demolition and Removals – $20K
Protection of Hallways – $5K
Plumbing Roughing Work – $30K
Electrical Roughing Work – $30K
Kitchen Cabinetry – $30K
Bathroom Vanities – $5K
Engineered Stone Counters – $15K

These line items have perhaps the most variability, as they vary greatly depending on the owners’ selections. However, below is an outline of costs that would be reasonable to plan around for a typical 2 bedroom 2 bathroom apartment renovation.

– Plumbing Fixtures – $10K
– Tile – $10K
– Flooring – $10K
– Appliances – $20K
– Light Fixtures – $5K
– Miscellaneous Framing Supplies and Materials – $40K

The last line item that is important to discuss for a construction project is General Conditions.

General Conditions are a line item budget bucket that is meant to cover any miscellaneous construction cost that is not captured in the line items above. It essentially is the contract component that gives a budget to pull from for any small things that need to get paid for by the G.C. to keep the project moving. For example, deliveries to the job site, quick trips to the hardware store to pick up a saw blade.

The concept of General Conditions comes from the AIA standard contract system, in a form called the AIA A201. it prevents the G.C. from “nickel and diming” the homeowner by saying specific items are not included.

Some G.C.’s will charge this as a percentage of total construction cost, but at Rauch Architecture we typically charge this as a “cost-plus” / reimbursable line item, or if preferred we can include it in our Construction Management Fee. We have seen these costs amount to $1-2K per month.

Estimating a 6 month construction project, the General contractor Costs would amount to around $150K total. The Subcontractor costs would amount to $120K, and the Materials would amount to around $95K. Adding in a General Conditions cushion of $6K would bring the total estimate to $371K.

Checking this against our initial estimate of $300-400 per square foot ($300-400K), you can see we were pretty close!

Click the button below to get a free construction estimate for your project or set up a time with our principal architect to discuss your project in more detail. We are always happy to be a resource for anyone planning a renovation.