Whether you’re whipping up a midweek meal or hosting a dinner party, it can feel like life centres around the kitchen – the “heart of the home”. Perhaps that’s why a kitchen renovation just edges out a bathroom renovation as Australians’ favourite home reno project.1
But how do you go about planning your dream kitchen? With so many decisions to make – layout, design, appliances and budget – it can be overwhelming. In this guide, we’ll break down a list of things to consider before starting your kitchen renovation.
Before kicking off any renovation project, however, it might be worth taking a minute to consider your home insurance. Renovations might impact your coverage, so it’s important to tell your insurer before you begin and also to understand your policy’s terms – which you should be able to find in your product disclosure statement.
Reasons for doing a kitchen renovation
Spending on renovations has boomed over the past five years,2 with Aussies having spent around $1.15 billion on additions and alterations to existing homes in November 2024 alone.3
According to online tradie marketplace HiPages, the average kitchen renovation cost sits around $30,000 to $50,000, depending on the scope of the project.4 While not an insignificant amount of money – it may still be worth it.
Given the average cost of a renovation is lower than the average cost of buying a new home, renovating could be considered a practical alternative to moving.5 Renovating also presents an opportunity to tailor your space to your needs while potentially increasing the value of your home.6
Some considerations before you renovate
When planning a kitchen renovation, questions about functionality, style and potential home value might be top of mind.
From layout and design details to budget, below we break down some of the considerations that can crop up during the process.
Kitchen layout
Think about how you use your kitchen every day. Do you prefer an open-plan design with a kitchen island for entertaining, or is a galley-style layout more practical for your space?
“To design the perfect kitchen, you need to have a really good understanding of how the kitchen will be used,” says interiors expert Wendy Moore, of TV series Selling Houses Australia and The Interiors Edit.
“Ask yourself questions such as: How many people live in your household, and how many share the cooking? How does this kitchen connect with other spaces in the house and where do you expect your family and friends to gather? Does the kitchen connect with the outdoor living space, the dining room, or the living room?”
Moore also suggests considering how your household might change over the next 10 years. “It’s these key questions that help you build your wish list for a kitchen that will work for you now, as well as in the future,” she says.
Budget
Your budget will most likely dictate the scope of your kitchen renovation. And given costs can vary dramatically based on design factors and labour costs, HiPages recommends adding a contingency of 15% to 20% of the estimated renovation cost to your budget, to cover unforeseen costs.4
If you anticipate budget being a restricting factor in your renovation, you might like to consider areas where you could save money. For example:4
- Cabinetry, by opting for a flat-pack or resurfacing or repainting existing units
- Flooring, by opting for cheaper materials such as laminate flooring or vinyl tiles
- Benchtops, by opting for laminate instead of natural stone, for example.4
Design and aesthetic
From classic white cabinets to bold colour palettes, design options for a kitchen renovation can seem endless. One way of capturing your ideas might be to create a real or virtual mood board, where you can file away kitchen renovation inspiration found online or in magazines.7 Include design features you may like to consider, for example, pendant lights as statement pieces, or custom cabinets for a tailored look.
Big-ticket items
Feature-packed, reliable kitchen appliances can make life easier, especially if you’re an avid home chef or entertainer. While your kitchen renovation budget will likely affect your choice of appliances, other considerations include longevity, energy rating, size and quality.8 For example, cheap options might need to be replaced sooner than you may think.8 Additionally, keep in mind the proximity of power points for anything that needs to be plugged in.
Storage solutions
Maximising storage can be a gamechanger. But don’t forget that, as well as functionality, storage offers more design opportunities. For example, you might like to opt for a mix of concealed and open shelving, so mess can be hidden in kitchen cabinets and special occasion items can be displayed.9
Common kitchen renovation mistakes – and how to avoid them
Even with the best intentions, there are plenty of pitfalls waiting to derail your renovation.
“The most common regret people have when they install a new kitchen is that they underestimate the amount of storage they need,” says Moore.
“My tip is to pull out all your small appliances and line them up on the floor then measure how much space they take up – you’ll be shocked!”
“Easy access to small appliances is one of the key ingredients to a successful kitchen design, so knowing what you use most regularly, and how much space it actually needs, is a very good start.”
Here are some other things to watch out for:
- Checking you have enough room for kitchen cabinets – including handles to open comfortably9
- The “kitchen triangle” rule, which optimises the placement of the sink, stove and fridge10
- The mixture and purpose of lighting styles – for instance, feature lighting can illuminate elements of the kitchen you want to draw attention to, while task lighting can be helpful in areas where work such as vegetable chopping is done.11
“If you can, put your feature pendant lights on a separate (light) switch,” says Moore. “It means you can create atmosphere in an open-plan kitchen and dining space with soft lighting when you’re done with the food prep.”
Current kitchen trends
Kitchen trends are leaning towards traditional, country-style designs – think practicality, space and warmth.12 Other popular kitchen trends for 2025 include:12
- Natural materials such as stone and timber
- Integration of smart appliances for a seamless experience
- A shift from all-white kitchens to coloured joinery.12
“There is definitely a growth in timber finishes for benchtops, which is a great way to add warmth to your kitchen,” says Moore.
“I love seeing colour in the kitchen and there’s also a growth in coloured cabinetry. Navy and green are strong choices that will last for years.”
“If you absolutely love a colour, don’t be shy! Pinks, corals and earthy terracotta (are) really beautiful and will be in style for many years to come.”
Insurance considerations during a kitchen renovation
A kitchen renovation could increase the value of your home6 and may have some implications for your home insurance, notes Mervyn Hartley, Youi’s Head of Product for Home Insurance.
Here are some points that you might want to keep in mind:
- Notify your insurer about your renovation project to ensure your policy reflects any increase in value or risk. Limitations or exclusions regarding coverage during renovations may apply, so it’s important to discuss this with your insurer before you begin.
- Accidents during renovations can happen so before you start, it might be a good idea to check if your home insurance covers accidental damage.
“If you’re planning on substantially upgrading your kitchen appliances during your renovation, you might want to revisit the amount you’re currently insured for, to account for their extra value,” says Hartley. Whether each appliance is classified as a Building fixture or a Contents item will likely depend on the type of policy, the appliance itself, and the installation method. It’s best to check with your insurer to ensure your new additions are accounted for correctly”.
Building permits and kitchen renovations
In Australia, a building permit is required for most building projects, including new construction, home extensions and major renovations.13 While not all kitchen renovations fall within the category of “major”, different states and territories in Australia have different rules for when a building permit is required – and what types of permit you might need.13 Before you start on your renovation, it could be a good idea to check with your local council.13
Ready to start your kitchen renovation?
A kitchen renovation can be an exciting project, holding the potential to transform your home and improve its functionality. From planning the layout to choosing stylish finishes, there are many decisions that can play a role in creating your dream kitchen.
And don’t forget about protecting your dream home with you-shaped home insurance. You can start a quote with Youi or find out more about our Home and Contents insurance online.
1 Source: Statista – Leading rooms for home renovations Australia 2024, November 2024
2 Source: KPMG – Renovation Domination: Decline in new builds while home renovations surge, November 2024
3 Source: Australian Bureau of Statistics – Building Approvals, Australia, January 2025
4 Source: HiPages – How much does a kitchen renovation cost?, December 2024
5 Source: Domain – Is renovating still crazily expensive? Or has the building industry slowed down?, August 2024
6 Source: realestate.com.au – Home renovations: what adds value to your home, and what doesn’t, March 2022
7 Source: Home Beautiful – Everything you need to know before embarking on a kitchen renovation, September 2024
8 Source: realestate.com.au – Kitchen renovation guide
9 Source: Home Beautiful – 7 of the most common kitchen design mistakes to avoid, December 2024
10 Source: build.com.au – The kitchen work triangle... and beyond
11 Source: Bunnings – How to plan kitchen lighting
12 Source: Vogue – The 8 biggest kitchen trends to know for 2025, November 2024
13 Source: Building Institute NSW – When Is a Building Permit Required?, September 2024
