Are renovation costs higher in 2025?

Yes, renovation costs in Ottawa are higher in 2025 compared to previous years, driven by inflation, material costs, and increased demand for skilled trades. However, the rate of increase has moderated compared to the dramatic spikes seen during 2021-2022.

Current Ottawa Market Reality

Material costs remain elevated but have stabilized. Lumber prices, while down from pandemic peaks, are still 20-30% higher than pre-2020 levels. Electrical components, plumbing fixtures, and insulation have seen steady increases of 15-25% over the past two years. Quality kitchen cabinets and bathroom vanities have particularly felt the impact, with mid-range options now starting where higher-end products were priced just a few years ago.

Labor costs have increased significantly across all trades. Skilled electricians, plumbers, and carpenters are commanding higher wages due to strong demand and limited supply of experienced workers. This directly impacts renovation pricing, as labor typically represents 40-50% of total project costs.

Permit fees in Ottawa have also increased, with the City implementing fee adjustments in 2024 that affect most renovation permits. Complex projects requiring structural or zoning approvals have seen the most significant increases.

Ottawa-Specific Cost Ranges (2025)

Current pricing reflects these market conditions:

• Bathroom renovations: $18,000 - $55,000 (up from $15,000 - $45,000 in 2022)


• Kitchen renovations: $30,000 - $85,000 (up from $25,000 - $70,000 in 2022)


• Basement finishing: $45 - $85 per square foot (up from $35 - $70 per square foot)


• Secondary dwelling units: $90,000 - $220,000 depending on complexity

The increases vary significantly based on finish level. Budget renovations using basic materials have seen smaller increases (10-15%), while high-end projects with premium finishes have experienced larger jumps (25-35%).

Strategic Planning for 2025

Timing matters more than ever. Spring booking (February-March) often secures better pricing than peak season rates. Many contractors, including ourselves, offer more competitive rates for off-season scheduling when possible.

Value engineering has become crucial. Working with experienced contractors who can suggest cost-effective alternatives - like choosing quartz over natural stone, or optimizing layouts to minimize plumbing relocations - can significantly impact your budget without compromising quality.

Permit delays can add unexpected costs through extended timelines. In Ottawa, building permit processing has improved but still averages 3-4 weeks for standard renovations. Factor this into your planning and budget.

The key is working with contractors who understand current market conditions and can provide realistic pricing upfront. For a detailed estimate based on your specific project and current market rates, contact Justyn Rook Contracting for a free consultation.