By Ago Kitchens · Published
What Published Surveys Report (National Averages)
One widely used reference is the annual Cost vs. Value report published by the Journal of Light Construction (JLC). Its 2025 report lists these national average job costs for three standardized kitchen projects:
| Project (as defined in the report) | 2025 national average job cost |
|---|---|
| Minor kitchen remodel, midrange | $28,458 |
| Major kitchen remodel, midrange | $82,793 |
| Major kitchen remodel, upscale | $164,104 |
Source: JLC 2025 Cost vs. Value Report, national data. The report also publishes regional and city figures, and it defines each project in detail (kitchen size, cabinets, finishes, appliances) — read those definitions before comparing them with your plans.
These are not Ago Kitchens prices or quotes, and they are not Owatonna-specific. They are national averages for defined example projects. Your kitchen's size, condition, layout changes, and selections can put your project well above or below them. The only reliable price for your kitchen is a written, itemized estimate based on your space and your choices — the rest of this guide explains what drives that number and how to compare estimates.
The Biggest Cost Drivers
1. Scope and layout changes
Scope is the single largest factor. Refreshing surfaces in an existing layout costs far less than relocating the sink, moving a gas line, or removing a wall. Every fixed point you move brings in additional trades, materials, possible permits, and repair work to walls and floors. See our overview of remodel scope levels.
2. Cabinets
Cabinets are often the largest single line item in a remodel. Price depends on the tier (stock, semi-custom, or custom), box and door materials, finish, the number of drawers versus doors, and specialty storage inserts. Refinishing or refacing existing cabinets can cost much less than replacement when the boxes are in good shape. Our cabinet guide compares the options.
3. Countertops
Material is only part of the countertop price. Edge profiles, the number of seams, sink and cooktop cutouts, backsplash pieces, and removal of old counters all add to the total. Natural stone and quartz are usually templated after cabinets are installed, which also affects scheduling. See how countertop materials compare, or the quartz, granite, and laminate trade-offs.
4. Appliances
Appliances range from basic to professional-grade, and the spread is enormous. Ask whether appliances are included in an estimate or purchased separately, and confirm models early — a larger range or a built-in refrigerator can change cabinet sizes, electrical needs, and ventilation.
5. Labor and licensed trades
A full remodel can involve demolition, carpentry, electrical, plumbing, HVAC or ventilation, drywall, tile, painting, and flooring. Electrical and plumbing work in Minnesota must be done by appropriately licensed people. Labor costs also reflect how busy tradespeople are in the area and the time of year.
6. Flooring, backsplash, and lighting
These finishing elements add up. Flooring that must run under or around cabinets, backsplash tile with complex patterns, and new lighting circuits all affect the price. Adding under-cabinet and pendant lighting usually requires electrical work beyond swapping fixtures.
7. Permits, design, and project management
Permit fees, design services, and the cost of coordinating trades and inspections are sometimes listed separately and sometimes built into other line items. Ask how each estimate handles them so you are comparing like with like.
Hidden Costs in Older Homes
Some costs cannot be known until walls and floors are opened. In older homes, demolition can uncover outdated or undersized wiring, aging plumbing, past water damage, uneven subfloors, or framing that needs reinforcement. Homes built before 1978 may also require lead-safe work practices when painted surfaces are disturbed.
None of this means you should avoid remodeling an older home — only that your budget should expect the unexpected. Ask each contractor how they handle hidden conditions and how pricing for that work will be agreed before it is done.
Setting Your Budget
- Start with priorities. List must-haves (more storage, a working layout, durable counters) separately from nice-to-haves.
- Decide on scope. Choose whether you are refreshing, replacing in place, or changing the layout. This frames everything else.
- Hold a contingency. Many remodeling professionals recommend setting aside roughly 10 to 20 percent of the project budget for surprises, with older homes toward the higher end.
- Plan for the whole cost. Include appliances, fixtures, hardware, permits, and a temporary kitchen setup during construction.
- Consider phasing. Some upgrades — like new lighting fixtures or hardware — are easy to add later. Others, like moving plumbing, are best done once.
How to Compare Estimates
Two estimates with very different totals often describe different projects. To compare fairly:
- Ask for itemized, written estimates that list labor, materials, and each trade separately.
- Watch for allowances. An allowance is a placeholder amount for items you have not chosen yet, such as tile or light fixtures. Low allowances make a bid look cheaper but can lead to overruns once you make real selections.
- Check what is excluded — permits, debris removal, appliance installation, drywall repair, painting, and cleanup are common gaps.
- Review the payment schedule. Payments tied to completed milestones protect you better than large payments up front.
- Understand change orders. Ask how changes will be priced and approved, and insist that they be in writing.
Before you sign, verify the contractor's license and read the contract carefully — our guide to choosing a kitchen remodeler in Southern Minnesota covers what to check.
Managing Costs Without Cutting Corners
- Keep the sink, range, and refrigerator where they are if the current layout works.
- Refinish or reface sound cabinets instead of replacing them — our cabinet decision guide shows how to tell whether the boxes will hold up.
- Spend on what you touch every day — drawers, hinges, faucets, and counters — and save on purely decorative elements.
- Make your selections before work starts, so the schedule is not held up and allowances are replaced with real prices.
- Avoid mid-project changes, which are among the most common causes of budget overruns.
When you are ready to talk through your own kitchen, see how Ago Kitchens works.
