Renovation costs refer to the expenses incurred when updating or improving a building or space. These costs can vary widely based on factors such as the size of the project, the materials used, and the labor involved. Common renovations include updating kitchens, bathrooms, and living areas, which can significantly impact the overall budget. When planning a renovation, it's essential to consider both direct costs, like materials and labor, and indirect costs, such as permits and inspections. Budgeting for unexpected expenses is also crucial, as issues may arise during the renovation process that can increase the total cost.