The Real Cost of Remodeling in the Twin Cities: 2026 Edition

A homeowner in St. Paul recently asked us why her neighbor’s basement finish cost $50,000, while the estimate she received from another contractor was closer to $150,000. It is the most common frustration we hear. You want to improve your home, you try to set a budget, and the numbers you find online are either vague or wildly contradictory.

Here is what I have learned after decades of remodeling older homes in the Twin Cities. The cost of a project is rarely just about the square footage. It is about what is hiding behind the plaster, the age of the plumbing, and the level of finish you expect.

Nationally, the remodeling market is booming. According to the Harvard Joint Center for Housing Studies, total homeowner remodeling spending is expected to reach a record $524 billion in early 2026 [1]. But local costs vary. At Castle Building & Remodeling, we believe in upfront pricing transparency. We do not want you spending thousands of dollars on architectural plans you will never build. That is why we publish our comprehensive 2026 Twin Cities Remodeling Cost Guide.

Let’s look at what is driving costs this year, specifically for the older homes that make our neighborhoods so special.

Why Older Homes Change the Math

We love older homes. They have character you simply cannot replicate today. The cased openings, the stained glass, the real wood millwork, and the built-in cabinets are exactly why people buy in Minneapolis and St. Paul.

But a 100-year-old home also has quirks. They are rarely level and almost never square. When we open a wall, we often find knob-and-tube wiring that needs replacing, galvanized pipes causing low water pressure, or a lack of insulation.

Code requirements also play a major role. If we are finishing an attic or a basement bedroom, we have to add an egress window. If we are touching the plumbing in St. Paul, we have to watch out for lead waste lines. These are not optional upgrades. They are safety requirements that add to the baseline cost before we even talk about quartz countertops or custom tile.

Kitchen Remodeling: From Updates to Additions

The kitchen is the heart of the home, and it is also where we see the widest range in project scope. The 2026 U.S. Houzz Kitchen Trends Study found that the median spend for a major kitchen remodel is $55,000, but that number jumps to $75,000 for larger kitchens over 250 square feet [2].

If you have a functional layout and just want to refresh the space, a kitchen update — keeping the existing cabinets but adding new quartz countertops, a tile backsplash, a new sink, and luxury vinyl tile flooring — typically starts around $29,000.

However, most of our clients want to fundamentally change how their kitchen works. A moderate remodel of a 144-square-foot kitchen, which includes new stock cabinets, granite countertops, new appliances, and custom lighting, generally falls between $71,000 and $82,000.

If you want to remove a load-bearing wall to open the space to the dining room, add an island, and upgrade to semi-custom painted cabinets, the budget shifts to the $90,000 to $115,000 range. The largest line-item costs are almost always the cabinets and the countertops. You can see examples of these transformations in our Kitchens Portfolio.

Bathroom Remodeling: Maximizing Small Spaces

Bathrooms in older Twin Cities homes are notoriously small. A standard 5-by-8-foot hall bath remodel usually ranges from $45,000 to $65,000.

Why does a small room cost that much? It comes down to the labor and the layers. Demolishing an older bathroom often means removing a mud-set floor and thick wall tile with wire mesh behind it. That takes time. Then we have to update the plumbing rough-ins, install new electrical wiring to code, and rebuild the space with modern waterproofing.

Upgrades like a frameless shower door, heated floors, or converting a tub to a walk-in shower will push that budget toward the $70,000 to $80,000 mark. See how we maximize these spaces in our Bathrooms Portfolio.

Finding Value in Basements and Attics

If you need more space, finishing an existing basement or attic is almost always more cost-effective per square foot than building an addition.

A small basement finish (under 400 square feet) to create a family room typically ranges from $45,000 to $100,000. If you are adding a bathroom, a bedroom with an egress window, and a wet bar, the budget will move closer to $150,000 or more. The key with basements is mitigating any water issues first. We often recommend closed-cell spray foam insulation below grade for the best performance.

Attics offer incredible potential for an owner’s suite. Converting an unfinished attic into a bedroom and bathroom involves extending the HVAC system, adding insulation (often a “hot roof” application), and ensuring adequate headroom. A 450-square-foot attic finish with a bathroom typically ranges from $125,000 to $143,000.

The Value of Certainty

Remodeling is a significant investment. You deserve to know exactly what you are getting and what it will cost.

That is why our process starts with detailed planning and a fixed-price design agreement. We provide a Lifetime Warranty on our workmanship, a Guaranteed Completion Date, and a No Unforeseen Change Order Guarantee. We want to eliminate the chaos and give you certainty. You can read more about how we structure this on our Process & Budget page.

If you are ready to explore what is possible for your home, we are here to help.

Schedule a 30-minute phone consultation with our team today. We will discuss your goals, answer your questions, and help you start planning the rest of your life.

Frequently Asked Questions

What is the average cost of a kitchen remodel in the Twin Cities?

The cost varies widely based on scope. A basic update starts around $29,000, while a full remodel with layout changes and new cabinets typically ranges from $70,000 to $115,000. You can view detailed sample estimates on our Project Costs page.

Should I finish my basement if it occasionally gets water?

You can, but it is risky unless you mitigate the water issues first. We recommend addressing the problem externally with gutters and grading, or internally with a drain tile system, before investing in finished space.

How much headroom is required to finish an attic?

There are specific code requirements for what is considered “habitable space.” Typically, we like to see 9 to 10 feet of height at the peak to ensure adequate headroom, especially if we are adding a dormer.

Why does remodeling an older home cost more?

Older homes often require more demolition (like removing plaster and lathe), lead or asbestos remediation, and significant updates to bring electrical and plumbing systems up to current building codes.

How do you ensure my project stays on budget?

We provide detailed project plans and fixed-price estimates before any construction begins. We back this up with our No Unforeseen Change Order Guarantee, meaning if we miss something in our planning, we cover the cost, not you.

References

[1] Harvard Joint Center for Housing Studies: Remodeling Expected to Continue Slow but Steady Growth Into Next Year

[2] Houzz: 10 Kitchen Remodeling Trends to Know for 2026