Demolition Costs

Learn How to Estimate Demolition Costs on Your Rehab Projects
Overview
|
Things to Look For
|
Price Ranges
|
Repair Items
|
Labor Costs
|
Material Costs
|
Location Factor
|
Other Factors
|
Calculating Your Budget
|
Examples
|
Other Resources

Overview

Every rehab project involves some level of demolition to remove outdated components and prepare for new installations. Accurate estimation of demolition costs is crucial for budgeting your rehab projects effectively. This guide helps you understand the factors involved in demolition and how to estimate costs.

Things to Look For

When assessing demolition needs, consider the scope of your project. Identify the areas and materials that need to be removed, such as walls, flooring, fixtures, and cabinetry. Note any hazardous materials that may require special handling, like asbestos or lead paint.

For a more detailed inspection checklist and guidance, refer to our Demolition Inspection Guide

Price Ranges

Demolition costs vary based on the project's size and complexity. A typical room demolition might range from $25 to $50 per hour, while whole-house demolition can cost **$2,500 to $10,000** or more, depending on the size and structure of the building.

Category Repair Items

Labor & Installation Costs

Demolition is labor-intensive, and costs are heavily influenced by labor rates and the time required to complete the job.

  • Typical labor rate: $37.50 per hour per laborer (average)
  • Crew size: 2-3 laborers for a standard house demolition
  • Estimated cost:
    • For a 1,500 sq ft house, with a 3-person crew working 8-hour days for 3 days (72 total hours):
      • At $37.50/hour: 72 hours x $37.50/hour = $2,700

Installation Timeline

Obviously the time it takes to demolish your property will depend on the size of the property and the types of rooms being demolished.

Certain rooms are easier or harder to demolish than others.  For example, a large living room that only has carpeting can be completed in less than an hour.  However, a bathroom can take several hours to tear out the bathtub, vanity, flooring & fixtures.  

On a 1,500 sf 3 bedroom, 2 bathroom property a demolition crew with 3 laborers can have the kitchen, bathrooms and floorings demolished in 2 to 3 days (48 to 72 hours) t

This assumes ceramic floors in the kitchen & bathrooms only with carpeting in the bedrooms & living areas.  If you are tearing out ceramic floors throughout the property that will definitely take more time than removing carpeting. If you are performing a complete gut down to the studs that will also add several days to the timeline.

Material Costs

Demolition typically doesn't involve significant material costs, but you might need:

  • Dumpsters: Costs vary by size and rental duration.
  • Protective equipment:  Gloves, masks, and safety glasses for workers.
  • Tools:  Sledgehammers, crowbars, and other demolition tools (if not provided by the contractor).

Location Factor

Location Adjustment

The prices in the table are based on typical demolition projects in an average suburban area. Demolition costs can vary substantially by location. If you are located in the East or West Coast, you could expect to pay 15% to 50% more than the recommended price provided. Consult our location multiplier index for more accurate pricing in your market.

Determining Your Local Prices

Contacting local demolition contractors is the best way to get accurate pricing. Explain that you are a real estate investor who needs a rough budget for demolition work. Be specific about the type of project (e.g., interior demolition, whole-house demolition) and the approximate size of the property.

Tips for contacting contractors:

  • Be upfront about your needs:  Let them know you are gathering preliminary estimates.
  • Don't pressure them for a firm quote:  Explain that you will contact them for a formal quote when you have a specific project ready.
  • Get multiple quotes:  Reach out to several contractors in your area to compare pricing.

Other Factors

Several factors can influence the overall cost of your demolition project:

  • Types of Rooms/Finishes: The complexity and type of finishes in each room significantly affect demolition time and labor costs. For instance, demolishing a simple living room with only carpet might take an hour, while a bathroom with tile, fixtures, and a bathtub could take several hours.
  • Cosmetic Rehab vs. Gut Rehab: The extent of your renovation plays a major role in demolition costs. A cosmetic rehab involving replacing cabinets, bathroom finishes, and flooring will be considerably cheaper than a full gut rehab, which includes tearing down walls and removing all drywall.
  • Property Size: Larger properties generally require more demolition work and, therefore, higher costs. However, larger projects might benefit from economies of scale, where the cost per square foot could be slightly lower due to increased efficiency.
  • Location:  Labor costs can vary significantly based on your location. Demolition work in a densely populated urban area or a high-rise building will likely be more expensive than in a suburban or rural location.
  • Seasonality: Demolition contractors often experience higher demand during peak construction seasons, such as spring and summer.  Scheduling your demolition work during these periods might result in higher prices due to increased competition for contractors.

How to Estimate Demolition Costs

Estimating demolition costs primarily involves determining the labor hours required and multiplying those hours by the labor rate. Consider the types of rooms, the extent of demolition, and any necessary disposal costs.

Measurements

Estimating demolition labor needs involves considering the scope of work and the property's characteristics. Here's a more detailed breakdown:

Assess the Scope:

  • Full gut vs. cosmetic: Determine if you're doing a complete gut (removing everything down to studs) or a cosmetic demolition (removing specific items like cabinets and flooring). Gut rehabs require significantly more labor.
  • Rooms and finishes:  Identify the types of rooms and finishes being demolished. Bathrooms and kitchens with tile and fixtures take longer than simple bedrooms with carpet.
  • Structural demolition:  Will any walls or structural elements be removed? This requires more skilled labor and time.

Consider Property Size:

  • Larger homes generally require more demolition time. However, economies of scale can make the per-square-foot cost slightly lower for larger projects.

Account for Debris Removal:

  • Estimate the volume of debris to determine the number of dumpsters needed. This impacts both rental costs and labor for loading debris.

By carefully evaluating these factors, you can create a more accurate estimate of the labor hours required for your demolition project.

Calculating Your Budget

Here's a more detailed approach to calculating your demolition budget:

  1. Estimate labor costs: Multiply the estimated labor hours by the hourly labor rate. For example, if you estimate 72 labor hours and an average rate of $37.50/hour, your labor cost would be 72 hours x $37.50/hour = $2,700.
  2. Add dumpster costs: Include the cost of dumpster rentals. This depends on the size and number of dumpsters needed, typically ranging from $350 to $750 per dumpster.
  3. Consider permit costs: Check with your local building department to see if any demolition permits are required and factor those costs into your budget.

Example

For a 1,500 sq ft house with a gut rehab, assuming 72 labor hours (a 3-person crew for 3 days), 2 dumpsters, and a $200 demolition permit:

  • Labor cost (using $37.50/hour): 72 hours x $37.50/hour = $2,700
  • Dumpster cost (2 dumpsters at $550 each): 2 x $550 = $1,100
  • Permit cost: $200
  • Total estimated cost: $2,700 + $1,100 + $200 = $4,000

Ready to Take Action?

Sign up for a free trial and join over 1,000+ real estate investors that are accurately estimating rehab costs for their projects.