Three things home renovators need to know about building in 2026

With construction costs, regulatory requirements and expectations around energy performance continuing to evolve, there are three things I believe are particularly important to consider before starting a renovation.

1. Budget for uncertainty.

Construction costs, labour availability and builder capacity remain unpredictable. Don't allocate every dollar to the construction budget. Allow for professional fees, approvals, unforeseen conditions and a realistic contingency.

And don't automatically choose the lowest quote. The experience, capacity and financial stability of your builder are important considerations in managing risk.

2. Design for performance, not just appearance.

A renovation is an opportunity to improve the comfort, efficiency and resilience of your home.

Consider orientation, insulation, glazing, shading and natural ventilation from the outset. Then look at technologies such as solar, batteries, heat-pump hot water, induction cooking and EV charging.

Good passive design can reduce the amount of technology a home needs in the first place.

Our St Peters House renovation has reinforced this for me. Relatively simple decisions around orientation, shading, insulation and ventilation have made a significant difference to the way the house performs.

3. Think carefully about what you don't need to build.

The answer isn't always a bigger house.

Retaining existing spaces, improving what you already have and making rooms more flexible can often deliver greater value than simply adding more floor area.

A smaller, better-considered renovation can reduce cost and environmental impact while creating a home that is more adaptable and works better for longer.

For me, the three key considerations for renovating in 2026 are:

Budget. Performance. Restraint.

Or, perhaps more simply:

Spend carefully. Build better. Build less.

St Peters House | Photography by The Guthrie Project

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