The short answer
A standard renovation of a 1,500-square-foot Chicago house runs about $72,000 to $180,000, and a gut rehab $108,000 to $270,000. Licensing is what changes most across the metro. The City of Chicago licenses general contractors in five classes by project value. The suburbs and Northwest Indiana license them locally or not at all.
What a remodel costs in Chicago
The ranges below start from national remodeling data and apply the Chicago construction cost factor of 1.20 from the U.S. Army Corps of Engineers, based on the Great Lakes region at North Chicago. They cover labor, materials and the general contractor's markup for a typical single-family home.
| Job | Chicago (typical range) | US average |
|---|---|---|
| Cosmetic update, 1,500 sq ft home | $27,000–$72,000 | $22,500–$60,000 |
| Standard renovation, 1,500 sq ft home | $72,000–$180,000 | $60,000–$150,000 |
| Gut renovation, 1,500 sq ft home | $108,000–$270,000 | $90,000–$225,000 |
| Kitchen remodel, mid-range, 150 sq ft | $27,000–$45,000 | $22,500–$37,500 |
| Full bathroom remodel, mid-range | $10,800–$33,600 | $9,000–$28,000 |
| Bedroom or living room refresh | $1,800–$12,000 | $1,500–$10,000 |
| Basement or attic finish | $24,000–$90,000 | $20,000–$75,000 |
| Exterior update | $7,200–$24,000 | $6,000–$20,000 |
| Roof replacement, 2,000 sq ft, asphalt | $8,400–$16,800 | $7,000–$14,000 |
Estimates for 2026, including labor and standard parts. Chicago prices use a construction cost factor of 1.20 (US average = 1.00) from the U.S. Army Corps of Engineers Area Cost Factors, based on Great Lakes (NTC), North Chicago. Your quote depends on access, materials and the condition of the home.
Use the cost estimator for a figure based on your ZIP code and scope. National averages by room are in our home remodeling cost guide.
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What drives the price up in Chicago
Three things push a Chicago bid above a national average: the housing stock, the two-flat, and winter. The Census Bureau's 2024 five-year estimates put the median year built in Chicago at 1953, and 75.2% of the city's housing units went up before 1980. Opening walls in a house that old often turns up knob-and-tube wiring, galvanized supply lines, no insulation and framing that needs repair before anything new goes in.
The two-flat is the second. About 13.1% of Chicago housing units sit in two-unit buildings, and a gut rehab of one means two kitchens, two baths, two sets of mechanicals and often a shared rear porch, so budget for both units.
Winter is the third. Chicago averages 38.4 inches of snow a year and 121 days with a low at or below freezing, according to National Weather Service normals for O'Hare. Exterior work stops or slows from December into March, and a project that runs into winter pays for heat, temporary enclosures and slower schedules.
Additions and conversions
An addition costs more per square foot than a remodel of existing space because it brings foundation, framing, roof, siding and often a structural engineer. A basement or attic finish costs less per square foot, $24,000 to $90,000 in Chicago, because the shell already exists. Our guide to designing an addition covers the design side, and structural engineer coordination explains when stamped calculations are needed.
What the general contractor's share pays for
The GC's markup is inside the ranges above. It pays for scheduling the trades, buying materials, pulling permits, meeting inspectors, carrying insurance and fixing what goes wrong between trades. On a $150,000 renovation, a 10% to 20% markup is a large line item. Part of it pays for the scheduling that keeps the electrician from showing up before the framer is done.
What a general contractor does, and who licenses them here
A general contractor runs a project that involves several trades. A Chicago gut rehab might need demolition, framing, plumbing, electrical, drywall, tile, cabinets, flooring and paint. The GC hires and sequences those trades and holds the permit.
Licensing works differently in each part of this metro.
City of Chicago
A City of Chicago general contractor license is required to perform most types of building construction, alteration, repair and demolition work in the city, according to the Department of Buildings. The license comes in five classes, A through E, set by maximum project value and minimum insurance:
| Class | Maximum project value | Minimum insurance per occurrence |
|---|---|---|
| A | Unlimited | $5 million |
| B | Up to $20 million | $3 million |
| C | Up to $10 million | $2 million |
| D | Up to $4 million | $2 million |
| E | Up to $500,000 | $1 million |
A license is valid for one year and is automatically inactivated if the insurance policy expires. A general contractor doing residential work must follow the consumer protection rules for licensed home repair companies but does not need a separate home repair license.
Trades that need their own city license and cannot work under a GC license include electrical, plumbing, mason, drain layer, elevator and crane operator contractors. Your GC's license does not cover the electrician or the plumber, and both need their own.
A homeowner doing work on their own primary residence does not need a GC license if the building is three or fewer stories, has six or fewer dwelling units and has no nonresidential occupancy, and the exception can be claimed for only one property per calendar year. It does not cover excavation or demolition.
Suburban Cook County and the collar counties
Illinois has no statewide general contractor license. In unincorporated Cook County, all contractors performing work must register with the Cook County Department of Building and Zoning. The initial registration fee is $150 per trade, and renewal is $75 per trade, due by December 31 each year. Contractors must show a $1,000,000 general liability certificate naming Cook County Building and Zoning as certificate holder.
Each suburb runs its own building department under its own adopted codes. Naperville requires building permits before starting new construction, additions, remodeling, decks, patios, fences and pools. Evanston, Oak Park, Schaumburg, Aurora and Joliet each set their own registration and permit rules, so ask the local building department before you sign.
Northwest Indiana
Indiana has no statewide general contractor license either. Lake County requires contractors to obtain a county contractor license, renewable online through the county permit portal. The City of Crown Point requires contractors to be licensed to work in the city, accepts a Lake County license to bypass its exam depending on scope, and requires a certificate of liability insurance of at least $500,000 including workers' compensation, plus a recorded Lake County bond of $5,000. Renewals are due annually by December 31, with a $25 late fee.
Cities such as Gary, Hammond, Merrillville and Valparaiso license or register contractors through their own building departments. Check with the city or town before work starts.
Do you need a permit?
In the City of Chicago, a permit is required before beginning most construction, demolition and repair work. The Department of Buildings exempts a limited range of repairs and minor alterations, including painting, tiling, carpeting and installing cabinets or countertops without plumbing or electrical connections, and replacing up to 1,000 square feet of drywall or plaster without touching mechanical, electrical or plumbing systems.
Most remodels go past that list. Moving a wall, adding a bathroom, running new circuits, converting a basement or attic to living space, or building an addition all need a permit.
Express permit or plan review
Chicago runs two permit paths for a remodel.
The Express Permit Program is a web platform to apply, check status, pay fees and view inspection results. For an interior alteration in a single residential unit it covers nonstructural remodeling up to 2,000 square feet without moving walls or doorways other than closets, electrical work including a new service under 400 amps, HVAC including new air conditioning, and plumbing adding up to 5 water supply fixture units. Moving walls, structural work, new stairs, exterior window or door work, or converting an attic or garage to living space needs drawings by an Illinois-licensed architect or structural engineer.
The Standard Plan Review Permit Program is the main process for permits that need architectural plans. It covers buildings up to 80 feet high, residential properties of up to 12 units and foundations no deeper than 12 feet. The city's target processing time is within 53 days. A separate Self-Certified Permit Application Program lets an Illinois-licensed architect or structural engineer with extra city training certify code compliance, and those permits are typically issued within 10 business days after zoning approval.
Any Express Permit for condominium property, including work inside an owned unit, needs a condominium association approval letter signed by the property manager or an officer.
Permit fees and the senior waiver
Chicago's online building permit fee estimator estimates the fee from construction type, occupancy type, area in square feet and project scope. It reflects the fee structure for permits issued in calendar year 2026, and new fee tables take effect January 1, 2027.
Long-term senior homeowners age 65 or older who meet income-eligibility criteria can have building permit fees waived for repairs, alterations and additions to one- to three-unit residential buildings they live in. Ask before the fee is paid.
In Naperville, complex projects such as a new single-family home may be reviewed in three to four weeks, while simple projects may be reviewed in less than one week. Inspections must be scheduled at least 72 hours in advance, and the printed permit must be posted where it is visible from the street.
Historic districts and landmarks
Chicago had 459 designated landmarks as of August 9, 2024: 388 individual landmarks, 62 landmark districts and 9 district extensions. The Commission on Chicago Landmarks reviews permit applications for designated and proposed landmarks and for work in landmark districts, and must approve proposed work before the city issues permits. No additional city permit is needed for a landmark building; the review happens inside the normal building permit process, and most applications are approved in one day.
Work a remodel tends to trigger
Lead service lines
Chicago has legacy lead service lines at nearly 400,000 homes, mainly single-family homes and two-flats, and lines were mainly lead until 1986. A house or two-flat built before 1986 very likely has one. The city's Homeowner-Initiated program waives standard permit fees of up to $5,000 for any owner who pays to replace the full lead line with a licensed plumbing contractor. If a remodel opens the basement floor or the front yard, replace the line then. Our plumbing page for Chicago covers the details.
Sewer backups
Chicago has a combined sewer system, so heavy rain can back sewage into basements. A sewer permit is required to build, repair, adjust, rod or clean any subsurface structure that carries storm or sanitary waste water. In Oak Park, eligible homeowners can get 50% of the cost, up to $3,500, to install an overhead sewer or a backflow prevention valve system.
Lead paint
Homes built before 1978 should be assumed to have lead paint unless tested. Lead paint dust is a common cause of lead poisoning in Chicago. Anyone paid to disturb painted surfaces in a pre-1978 home must be certified under the EPA's Renovation, Repair and Painting rule. A Chicago permit may also require a lead-based paint form filed with the Department of Public Health before work begins.
Energy code and rebates
Chicago's Energy Transformation Code, based on the 2021 IECC, applies to projects whose first permit application started on or after November 1, 2022. ComEd offers a $750 rebate on ENERGY STAR certified heat pump water heaters. Federal tax credits under 25C and 25D ended for property placed in service after December 31, 2025. Do not count on them in a 2026 budget.
Contracts and payments under Illinois law
Illinois sets rules for home repair and remodeling contracts, and the Attorney General publishes them for homeowners.
- Written contract: required for any home repair or remodeling work over $1,000, stating the total cost, parts and materials, any charge for an estimate, and the business name and address.
- Pamphlet: before signing a contract over $1,000, the contractor must give you the Attorney General's "Home Repair: Know Your Consumer Rights" pamphlet.
- Three-day right to cancel: you have three business days to cancel if the sale is made and signed at your home. The contractor cannot take that right away by starting work or selling the contract to a lender.
- Liens: a mechanic's lien can be placed on your home if the contractor fails to pay subcontractors or suppliers, even if you paid the contractor in full. Ask for a written list of all parties furnishing materials and labor. Do not make the final payment until you hold signed lien waivers from every subcontractor.
- Arbitration and jury waivers: the contractor must advise you of any binding arbitration or jury trial waiver clause before the contract is executed, and you sign and write "accept" or "reject" next to each.
- Insurance-funded work: if the job is paid from insurance proceeds and the insurer denies part of the claim, you may cancel under the timetable in the statute, and the contractor must return payments within 10 days.
About 20% of the more than 20,000 complaints the Illinois Attorney General's Office receives each year involve disputes between homeowners and home repair contractors. Our guide to paying a contractor covers milestone schedules and lien waivers.
In Indiana, home improvement contracts over $150 must be in writing. The Indiana Attorney General advises paying no more than one third of the total as a down payment, confirming whether a permit is needed, and asking whether the contractor is licensed, bonded and insured.
How to check a remodeling contractor before you hire
- In the City of Chicago, look the company up in the Department of Buildings' License Lookup: Contractors tool. Confirm the license class covers your project value and that the license is active.
- Check the permit professional's license through the city's License Lookup: Permit Professionals tool if someone other than the GC is pulling the permit.
- In unincorporated Cook County, confirm the contractor's registration with the Department of Building and Zoning.
- In the suburbs, call the village or city building department and ask whether the contractor is registered and whether complaints have been filed.
- In Northwest Indiana, ask for the Lake County contractor license or the city license for the town where you live.
- Ask for the insurance certificate and confirm the policy is current. A Chicago GC license is inactivated the day the insurance lapses.
- Ask for references from similar projects in the same county and call them.
Every contractor in the GOLDGCP network passes our six-step vetting: state license verification, an insurance check, a background and business check, a portfolio review, client reference calls, and onboarding with a quality score.
Areas we cover
GOLDGCP matches homeowners with licensed remodeling contractors across the Chicago metro, including:
- Chicago and its neighborhoods
- Evanston and Oak Park
- Naperville and Schaumburg
- Aurora and Joliet
- Northwest Indiana, including Lake and Porter counties
Enter your ZIP code to see local prices and contractors who serve your area.
How GOLDGCP works
- Describe your project online, by phone or on WhatsApp. You see prices for your ZIP code before anyone visits.
- We match you with up to 3 vetted, licensed pros.
- You compare written bids and choose one.
- You pay your pro directly, stage by stage, and you pay each milestone only after you approve that stage.
Frequently asked questions
How much does a general contractor charge in Chicago?
The GC's markup is built into the ranges above, usually 10% to 20% of construction cost on a large remodel. A standard renovation of a 1,500-square-foot Chicago house runs about $72,000 to $180,000 in total, and a gut rehab $108,000 to $270,000.
Do I need a licensed general contractor for a remodel in Chicago?
Yes, for most construction, alteration, repair and demolition work in the city. The license comes in five classes by project value, and Class E covers projects up to $500,000. A homeowner can act as their own GC on a primary residence of three or fewer stories and six or fewer units, but only for one property a year.
How long does a Chicago building permit take?
It depends on the path. Express Permit work can be issued the same day. Standard Plan Review has a city target of within 53 days. Self-certified permits are typically issued within 10 business days after zoning approval.
Can I remodel a two-flat in Chicago?
Yes. About 13.1% of Chicago housing units sit in two-unit buildings. Budget for two kitchens, two baths and two sets of mechanicals. If the property is a condo rather than a two-flat, expect the city to require a condominium association approval letter.
How much can a contractor ask as a down payment in Illinois?
Illinois law does not set a percentage cap for home repair and remodeling. It requires a written contract over $1,000, a three-day right to cancel if you sign at home, and lien waivers before final payment. In Indiana, the Attorney General advises paying no more than one third up front.
Does my Chicago remodel need a lead paint inspection?
If the house was built before 1978, assume lead paint is present unless it has been tested. Anyone paid to disturb painted surfaces must be certified under the EPA's Renovation, Repair and Painting rule. A Chicago permit may also require a lead-based paint form filed with the Department of Public Health.
Do I need a permit for a basement finish in Chicago?
Yes, if you are converting the space to living space. A basement finish that adds rooms, plumbing or electrical work needs a permit. Nonstructural interior alteration up to 2,000 square feet without moving walls can go through the Express Permit Program. Converting a basement to living space needs drawings by an Illinois-licensed architect or structural engineer.
How we calculate these prices
GOLDGCP starts from national price ranges for each job, taken from published 2026 cost guides and checked against local price guides where they exist. To get a local price, we multiply the national range by the construction cost factor for the metro from the U.S. Army Corps of Engineers Area Cost Factors (US average = 1.00). Where that table has no entry for a metro, we use the nearest listed location or the state value. For ZIP codes outside the 50 largest metros, the cost estimator uses the state's price level from the Bureau of Economic Analysis Regional Price Parities. Ranges include labor and standard materials but not unusual site conditions, so a written quote after an inspection is always the final price.
Sources
About this guide
Written by the GOLDGCP editorial team. Prices come from national cost guides adjusted with official construction cost factors for Chicago; rules and statistics come from the agencies and reports linked in the text. We update this page when prices or codes change.