The average cost to renovate a two-story home in the United States ranges from $50 to $150 per square foot, depending on project scope, materials, and location. Basic updates like painting or flooring typically cost $50–$75 per sq ft, while major renovations (e.g., kitchen remodels, bathroom additions, or structural changes) average $75–$150 per sq ft. Luxury renovations with high-end materials (e.g., marble, custom cabinetry) can exceed $150 per sq ft.

The cost variance stems from factors like labor rates, material quality, and regional demand. According to the 2023 Remodeling Cost Report by the National Association of the Remodeling Industry (NARI), the national median cost for mid-range renovations is $85,000 for a 2,000 sq ft home, translating to $42.50 per sq ft. However, major renovations (e.g., adding square footage or replacing HVAC systems) average $120,000 for 2,000 sq ft, or $60 per sq ft. High-cost regions like California and New York see prices 20–30% higher due to labor shortages and material inflation. For example, a 2022 report by the National Association of Home Builders (NAHB) noted that West Coast homeowners pay $65–$85 per sq ft for mid-range updates, compared to $45–$65 in the Midwest.

Regional disparities also influence costs. A 2023 study by the Joint Center for Housing Studies found that materials account for 40–50% of renovation expenses, with lumber prices rising 18% year-over-year. Labor costs vary similarly, with carpenters earning $40–$70 per hour in urban areas versus $30–$50 in rural zones. Additionally, permit fees and design services add $10–$25 per sq ft, depending on complexity. Projects requiring structural changes (e.g., beam replacements or wall removals) often incur higher costs due to specialized expertise. Ultimately, homeowners should budget 10–20% above quoted prices for unexpected delays or material shortages.