I was speaking with a past professional in the industry and they mentioned that they always tell people that it’s better to demolish and build new than it is to renovate.

This caught me off guard.

I’m not sure what this person did in construction to have such a polarizing stance of opinion but here’s my 17 years of experience and 2 cents about it.

That’s not always the case.

And, it entirely depends.

Whether a renovation or a demo and rebuild is more cost-effective depends on several factors, including the extent of the renovation or rebuild, the condition of the existing structure, and the cost of building materials and labor in the local area. 

In most cases, a renovation is more cost-effective than a demo and rebuild, especially if the structure is in good condition and only requires minor updates or repairs. 

I have worked on hundreds of huge, completely-gutted style renovations and additions, and I have yet to have a client or contractor say they should have demolished and rebuilt. 

Including a few homes built over 100 years ago. 

Think about it…

If the bones are good, you won’t need new foundation, framing, roof structure, and other major structural components. That in itself is a large part of the cost. 

Renovations may allow you to preserve some of the original features and character of the home, which can be important for historical or sentimental reasons. In some cases it can also grandfather you into some current local requirements, like setback or building height. #hugewin

But what a lot of people don’t think about, is the cost of demolition and removal. There’s permits, testing, disconnects… not just a machine and mere minutes with the bucket. Then comes the biggest expense - removal. All that waste costs thousands of dollars to bin, move and dump.

And yet, in some cases, a demo and rebuild may be more cost-effective.

If the existing structure

• is in poor condition, whether that’s damage made by water, fire, insect, erosion, etc.,

• has poor or faulty construction,

• does not meet modern building standards and safety, or

• limits or adds more costs to the addition than it would be to remove.

A rebuild can allow you to create a more energy-efficient and functional home from scratch, with the limitations of the existing structure. 

Additionally, a rebuild can sometimes be less expensive in the long run, as it can eliminate ongoing maintenance and repair costs associated with an older home. 

Ultimately, the best approach depends on the specific circumstances of each project. It’s important to consult with experienced professionals, such as architect/ural designers, contractors, and engineers, to determine the best course of action for your renovation or rebuild project based on your budget and goals. 

It’s never as black and white as some might say.

If a renovation or a demolition is something that you’ve been considering, we’re breaking down the numbers of a past project inside of Homeowner HQ and answering all your questions about your personal project. 

I highly recommend you join this conversation.

— Chelsey