How Much Does It Cost to Knock Down a House and Rebuild?


Every year, thousands of homeowners in the United States plan to demolish their houses and rebuild. The reasons vary, but the first question is always the same: How Much Does It Cost to Knock Down a House and Rebuild?

It does not cost much to knock down a house. It is less than you even think. Cost of knocking down a house depends on several factors such as size and location of the house, the age of your home, environmental issues and your city’s specific requirements regarding demolition

National Average Cost to Demolish and Rebuild a House

The average cost of demolishing and rebuilding a house depending upon its size is listed below.

  1. House size 1,000 sq. ft

The average demolition cost for demolishing a house of less than 1,000 sq. feet is $4,000 to $ 15,000. While its rebuilding cost is $40,000 to $175,000. The total demolition and rebuild cost is $44,000 to $190,000.

  1. House size 2,000 sq. ft

The average demolition cost for demolishing a house of less than 2,000 sq. feet is $8,000 to $ 30,000. While its rebuilding cost is $70,000 to $350,000. The total demolition and rebuild cost is $78,000 to $380,000.

  1. House size 3,000 sq. ft

The average demolition cost for demolishing a house of less than 3,000 sq. feet is $12,000 to $ 45,000. While its rebuilding cost is $120,000 to $525,000. The total demolition and rebuild cost is $132,000 to $570,000.


A thorough demolition of a house demands an extensive planning, right permits and site preparation for new construction. Demolition does not cost much; the cost jumps when rebuilding start.

Cost of building a new home depends on several factors including its size, location, materials, features, site work and more.

A 2,000 square foot house with average-quality features and no basement can easily cost $70,000 or more to build. However, the costs are often minimized when first demolishing the home because much of the site work is already completed. This work alone can cost several thousand dollars.

National Average Remodel Cost

Renovating is another choice for new homeowners to enhance the look of your home instead of demolishing it. It may sound like the more economical choice, but that’s not always true.

Here we have listed three remodeling types along with the cost to have a clear picture.

  1. Minor Renovations

Minor renovations include interior & exterior painting, small repairs, refinishing, new landscaping etc. Average cost of minor renovations is $25,000 to $45,000.

  1. Moderate Renovations

Moderate renovations include all the minor renovations plus kitchen renovations, bathroom renovations. Average cost of moderate renovations is $46,000 to $75,000.


  1. Major Renovations

Major renovations include all the minor and moderate renovations listed above. Moreover, it includes fixing foundation issues, roof issues, and sewer line issues. Average cost of major renovations is $76,000 to $100,000 +.

Renovate Versus Replace

What is better among demolish and rebuild or renovate? This is an important question while planning to transform your old house into the desired shape. There is a considerable difference in the amount of both processes. Several factors contribute to deciding whether it is best to rebuild a building or renovate it.

If you have taken on a home renovation project that requires a lot of work, here are detail reasons for choosing renovation or rebuilding. This will help you decide the best among renovate or replace.

Reasons for Renovation

The most common reasons for renovating are:

  • Architectural importance of building

Architectural importance of a building contributes a lot in determining whether you need to renovate or rebuild. It is impossible to rebuild a building that matches with the genuine authentic historical design and structure. In this case, it is best to renovate a building while maintaining its internal and external fabric.

  • Cost-effectiveness

The renovation is cheaper than rebuilding. Even if it is done from the very start, keeping the basic fabric only.

You can save more on home renovation by following the money saving tips by expert home renovation contractors.

  • Environmental effects

From the perspective of the environment, retaining and recycling things that already exist need less energy than demolishing and building from start

  • Planning Permissions

Renovating an already existing building demands fewer permissions then the permissions for rebuilding a new house. Hence, renovation saves your time.

Reasons for Demolition

On the other hand, there are many occasions, where renovation means financially costly compromises, which reduces the functionality and worth of the home.

The most common reasons for demolishing and then rebuilding are mentioned below :

  • Easy VAT reclaims

New build projects are zero-rated for VAT (value added tax) while renovations are subject to full VAT. Hence, it makes valid financial sense to start from scratch and get your desired look.

  • Poor thermal performance of the building

If the thermal performance of the existing building is not working properly, it is a more eco-friendly act to save long term energy loss by applying short term energy in the rebuild.

  • Improper layout

You might feel that the building is not properly utilizing the plot or any other fault in the home layout. By building it again, you can take maximum advantage of the plot. Moreover, this way you can get the flexibility to relocate your bedrooms or living rooms in your desired place.

  • Everything new

Most homeowners want to be comfortable with something newly built, knowing that it is entirely sturdy, where everything functions smooth. This will save you from the troubles of an old home that cannot be resolved such as impractical drainage system or narrow doorways etc.

In addition to the reasons discussed above, there are many other factors to weigh before choosing renovation or rebuilding. Before starting your project get a thorough assessment by professional home improvement contractors. If the structure of your home is in good condition and has healthy internal and external features, renovation can be a suitable option for you. If your home has a poor foundation, roof, ventilation or sewerage system that cannot be renovated, or you simply prefer a new home in your desired form, go with a demolition-and-rebuild.

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