You should budget between $2,000 and $12,000 per room for home decor, depending on room size and quality level. Most people spend around $5,000 to $8,000 per room for good quality furniture and decor items.
Planning your home decor budget can feel scary. You want your space to look beautiful, but you don’t want to spend too much money. This guide will show you how to set a realistic budget, save money where you can, and spend wisely on items that matter most. You’ll learn the average costs for different rooms, simple budgeting rules, and tips to make your money go further.
Understanding Home Decor Costs
Home decor spending in America has grown a lot. In 2022, the average American spent about $746 on furniture alone, and that number keeps going up each year.
American households now spend about $1,891 per year on home furnishings. This includes everything from sofas and beds to pillows and picture frames.
But these are just averages. Your actual budget will depend on many things:
- The size of your home
- Your design goals
- Quality level you want
- Whether you hire a designer
- How many rooms you’re decorating
What Affects Your Budget?
Room Size: Bigger rooms need more furniture. A large living room will cost more than a small bedroom because you need bigger sofas, more chairs, and larger rugs.
Quality Level: A $500 sofa from a discount store is very different from a $2,500 designer sofa. Better quality lasts longer but costs more upfront.
Your Timeline: Buying items slowly over time is cheaper than furnishing a whole house at once. Rush orders and fast shipping add extra costs.
Location: Where you live matters. Furniture costs more in big cities than in small towns. Shipping to rural areas can be expensive too.
Room-by-Room Budget Breakdown
Let’s look at what different rooms typically cost. These numbers include furniture, decor, and accessories.
Living Room Budget
The living room is often the most expensive room to decorate. Living rooms are typically the largest rooms with the most furniture.
Here’s what you can expect to spend:
Low Budget: $3,000 to $5,000
- Basic sofa or sectional
- Coffee table
- Small rug
- Basic lighting
- A few decor items
Mid-Range Budget: $7,000 to $12,000
- Quality sofa with good fabric
- Accent chairs
- Nice coffee table and side tables
- Area rug
- Window treatments
- Lighting fixtures
- Art and accessories
High-End Budget: $15,000 to $25,000+
- Custom or designer sofa
- Multiple seating pieces
- High-quality tables
- Premium rug
- Custom window treatments
- Statement lighting
- Curated art collection
Most people spend between $7,000 and $10,000 to fully furnish a living room with good quality items.
Bedroom Budget
Your bedroom is your personal space. Many people skimp on bedroom design because they think no one will see it, but you deserve a beautiful, restful retreat.
Low Budget: $2,000 to $3,500
- Basic bed frame
- Standard mattress
- Simple nightstands
- Basic bedding
- Minimal decor
Mid-Range Budget: $5,000 to $10,000
- Good quality bed frame
- Comfortable mattress
- Two nightstands
- Dresser
- Quality bedding
- Window treatments
- Lighting
- Accessories
High-End Budget: $12,000 to $20,000+
- Designer or custom bed
- Premium mattress
- High-end furniture pieces
- Luxury bedding
- Custom window treatments
- Statement lighting
- Art and decor
For guest bedrooms, you can spend less. Guest bedrooms usually cost less and should aim for the low end of budget ranges because they’re often smaller and don’t get heavy daily use.
Dining Room Budget
Dining rooms focus mainly on the table and chairs. For dining rooms, most spending should go toward the table and chairs.
Low Budget: $1,500 to $3,000
- Basic dining table and chairs
- Simple lighting
- Minimal decor
Mid-Range Budget: $5,000 to $8,000
- Quality dining set (table and 6 chairs)
- Nice lighting fixture
- Area rug
- Storage piece (buffet or sideboard)
- Art and accessories
High-End Budget: $10,000 to $20,000+
- Designer dining table and chairs
- Statement chandelier
- Premium rug
- Custom storage pieces
- Curated decor
The average cost to decorate a dining room is around $3,000 to $20,000, with most people landing in the middle range.
Kitchen Decor Budget
Kitchens don’t need as much furniture, but small decor items add up.
Basic Kitchen Styling: $500 to $1,500
- New accessories
- Small appliances
- Window treatment
- Lighting updates
- Organizing items
Full Kitchen Refresh: $2,000 to $5,000
- All the above
- Bar stools
- Rug
- Updated hardware
- More extensive decor
Note: This doesn’t include major renovations like new cabinets or countertops.
Home Office Budget
With more people working from home, remote work adoption is boosting home-office decor purchases.
Low Budget: $800 to $2,000
- Basic desk
- Office chair
- Task lighting
- Simple storage
Mid-Range Budget: $3,000 to $7,000
- Quality desk
- Ergonomic chair
- Good lighting
- Storage solutions
- Decor items
High-End Budget: $8,000 to $15,000+
- Custom or designer desk
- Premium ergonomic seating
- Professional lighting setup
- Built-in storage
- Complete styling
Simple Budgeting Rules That Work
Budgeting doesn’t have to be hard. Here are simple rules that help.
The 10% to 50% Rule
Some experts suggest budgeting based on your home’s value. For a 2,000 square-foot home, you may choose to budget 10% to 50% of the purchase price for furniture.
For example:
- $200,000 home = $20,000 to $100,000 furniture budget
- $300,000 home = $30,000 to $150,000 furniture budget
The wide range lets you adjust based on your situation. Start lower if you’re on a tight budget.
The 7% to 12% Rule for Complete Redesign
For a complete redecoration and refurbishment, budget 7% to 12% of your property’s value.
This rule works well for whole-home makeovers that include:
- All furniture
- Window treatments
- New paint
- Lighting updates
- Complete accessories
The Per-Square-Foot Method
Another way to budget is by square footage. The average cost to furnish a house is between $10,000 and $30,000 for most properties.
Breaking it down by size:
- Small studio (500 sq ft) = $5,000 to $7,500
- Average house (2,500 sq ft) = $25,000 to $37,500
- Large home (3,500+ sq ft) = $35,000 to $42,000+
This averages to about $10 to $15 per square foot for basic to mid-range furnishings.
The Three-Tier System
Many designers use a Good, Better, and Best system for budgeting. This makes it easier to understand what you’ll get at different price points.
Good (Budget-Friendly): $5,000 per room
- Basic, functional furniture
- Simple decor
- Budget retail stores
- Limited customization
Better (Mid-Range): $8,000 to $10,000 per room
- Higher quality furniture
- More decor options
- Mix of stores
- Some custom pieces
Best (High-End): $15,000+ per room
- Designer furniture
- Custom pieces
- Unique items
- Professional styling
Where to Spend More Money
Not all items deserve the same budget. Some things are worth spending extra money on.
Investment Pieces That Matter
Sofas and Seating: Getting a custom sofa sized perfectly to your space with comfortable fill is crucial. You use your sofa every day. A $2,000 quality sofa that lasts 10 years is better than a $500 sofa that breaks in 2 years.
Mattresses: You spend a third of your life sleeping. A good mattress affects your health and happiness. Don’t cheap out here.
Rugs: A high quality rug gives the entire room a luxurious feel and grounds a room by making everything else look put in place.
Dining Tables: Your dining table lasts for years. Invest in solid wood that can handle daily use and family meals.
Office Chairs: If you work from home, a good ergonomic chair saves your back and neck. This is health, not just decor.
Where You Can Save Money
Accent Pieces: If you’re looking to save, cut down on your accent pieces, decor items, and window treatments.
Side Tables: Small tables are easy to find at good prices. You can always upgrade later.
Frames and Art: You can create a personalized and unique space with affordable art by framing prints, photographs, or even DIY projects.
Decorative Accessories: Vases, books, and small decor items can come from thrift stores and discount shops.
Textiles: Throw pillows, blankets, and simple curtains are often affordable and easy to change seasonally.
Smart Money-Saving Strategies
You don’t need a huge budget to create a beautiful home. Here are practical ways to save.
Shop Slowly and Intentionally
The best way to save money is to go slow. The biggest mistake people make is moving and buying tons of stuff immediately to fill every space.
Take your time. Live in your space first. Notice how you use each room. Then buy items you truly love and need.
Mix High and Low
You don’t need expensive everything. Buy a few quality anchor pieces, then fill in with budget finds.
For example:
- Invest in a great sofa
- Get affordable throw pillows
- Buy a quality rug
- Use budget side tables
This creates a balanced, stylish look without breaking your budget.
Shop Secondhand First
Sites like Craigslist, local Facebook buy/sell groups, and Freecycle help you buy expensive items for very cheap.
Great places to find deals:
- Facebook Marketplace
- Craigslist
- Estate sales
- Thrift stores
- Consignment shops
Solid wood furniture from the 1960s-1980s is often better quality than new cheap furniture. A little paint or new hardware makes it look fresh.
Time Your Purchases
Furniture goes on sale at predictable times. Shop sales to save 30% to 50%.
Best sale times:
- January (after holidays)
- February (Presidents Day)
- July (mid-summer clearance)
- Labor Day weekend
- Black Friday and Cyber Monday
Do Some Work Yourself
Determine which projects you are willing to take on yourself and which ones you will be better off hiring professionals to do.
Easy DIY projects that save money:
- Painting walls
- Hanging curtains
- Assembling furniture
- Arranging decor
- Simple organizing projects
Hire professionals for:
- Electrical work
- Plumbing
- Custom built-ins
- Heavy furniture moving
- Complex installations
Repurpose What You Have
Shop your house. Walk around and change things up. It’s crazy how much more you can appreciate an item when you bring it from one room to another.
Before buying new:
- Move items between rooms
- Paint old furniture
- Change hardware on dressers
- Update lampshades
- Reframe old art
Creating Your Personal Budget Plan
Now let’s build your actual budget. Follow these steps.
Step 1: List Your Rooms
Write down every room you want to decorate. Include:
- Living room
- Bedrooms (how many?)
- Dining room
- Kitchen
- Home office
- Entryway
- Bathrooms
Step 2: Prioritize Your Rooms
Some designers recommend investing in the spaces that are most public. Other experts say you should spend the most money where you spend the most time.
Ask yourself:
- Which rooms do we use most?
- Which rooms do guests see?
- Which rooms need furniture the most?
- Which rooms affect our daily happiness?
Rank your rooms from most to least important.
Step 3: List Everything You Need
For each room, list every item:
- Major furniture pieces
- Window treatments
- Lighting
- Rugs
- Art
- Accessories
- Any labor costs (painting, installation)
Step 4: Research Real Costs
Do basic research in stores and using catalogs. Sure, you can spend $500 for a sofa or $5,000 for a sofa. But what are retailers charging for the kind of quality and style you want?
Create a spreadsheet with:
- Item name
- Estimated cost
- Where to buy it
- Priority level (must-have or nice-to-have)
Step 5: Add a Cushion
Build in 10% to 15% cushion into your budget for anything unexpected. Things always cost more than you expect.
Extra costs people forget:
- Delivery fees
- Assembly costs
- Extra paint or materials
- Shipping charges
- Tax
Step 6: Set a Timeline
For new homeowners, average spending in the first year is around $8,927. But you don’t have to spend it all at once.
Break your budget into phases:
- Month 1-3: Essential furniture only
- Month 4-6: Add comfort items
- Month 7-12: Style and decor
- Year 2+: Upgrades and finishing touches
This approach spreads costs out and gives you time to find deals.
Working With Professional Designers
Should you hire a designer? It depends on your budget and needs.
Interior Designer Costs
On average, a traditional interior designer will cost anywhere from $2,000 to $15,000, excluding furniture.
Different pricing models:
- Hourly Rate: $100 to $500 per hour
- Flat Fee: $2,000 to $15,000 for a project
- Percentage of Budget: 10% to 30% of total project cost
- Per Room: $450 to $1,500 per room for design only
Online design fees typically range from $159 to $2,099, often offered at a flat rate, making them much more affordable.
When a Designer Is Worth It
Consider hiring help when:
- You’re doing a whole-house renovation
- You don’t know where to start
- You want to avoid expensive mistakes
- You need help with space planning
- Your time is worth more than the cost
Homeowners have spent anywhere from $500 to $10,000 in decorating mistakes. A designer helps you avoid these costly errors.
Explore Rise Interiors’ services to see how professional design can work within your budget.
DIY vs. Designer
You can mix both approaches:
- Hire a designer for a consultation only
- Get a design plan, then shop yourself
- Use a designer for tricky spaces only
- DIY the easy rooms yourself
Many designers, including the team at Rise Interiors, offer flexible options to fit different budgets. Check their price table to understand costs upfront.
Budget-Friendly Decor Ideas by Room
Here are specific ways to save in each room without sacrificing style.
Living Room on a Budget
Focus on the Sofa: Put most of your budget here. Get a quality sofa, then save elsewhere.
Skip Matching Sets: Mix different chairs instead of buying a full furniture set. This looks more interesting anyway.
DIY Your Coffee Table: Use an old trunk, stack books, or refinish a thrift store find.
Budget Window Treatments: Simple curtains or blinds work fine. You don’t need custom drapery right away.
Art Alternatives: Print your own photos, frame fabric, or use large mirrors instead of expensive art.
Bedroom Savings
Platform Bed: These are cheaper than bed frames with headboards. Add pillows to create a headboard look.
Bedding Splurge: Invest in good sheets and a duvet. These affect your sleep quality.
Skip the Dresser: Use a bookshelf or closet organizers if space is tight.
Thrift Nightstands: Small tables are easy to find secondhand. Paint them to match.
Simple Lighting: Basic lamps work fine. You don’t need fancy fixtures in bedrooms.
Dining Room Deals
Mix and Match Chairs: Buy four matching chairs and two different ones for the ends. This looks designer but costs less.
Skip the Buffet: Add it later when you find the right piece on sale.
Affordable Chandelier: Lighting stores have good options at all price points.
DIY Centerpiece: Use items you have instead of buying expensive table decor.
Simple Rug: Put a budget rug under the table. It gets hidden by chairs anyway.
Kitchen Updates
Paint Cabinets: New paint is cheaper than new cabinets and looks amazing.
Change Hardware: New knobs and pulls update the whole kitchen for under $100.
Open Shelving: Remove cabinet doors and style with dishes you already have.
Budget Backsplash: Peel-and-stick tiles look good and cost much less than real tile.
Accessorize Smart: A nice dish towel, soap dispenser, and plant make a big difference for under $50.
Common Budgeting Mistakes to Avoid
Learn from others’ mistakes. Here’s what not to do.
Mistake 1: No Plan or Budget
The biggest and most costly thing you can do is to not have a plan. Shopping without a plan leads to random purchases that don’t work together.
Always have a budget and list before shopping.
Mistake 2: Buying Everything at Once
People move and buy tons of stuff immediately to fill up every space. Creating a home is a process and you should live somewhere for a while before investing in tons of furniture.
Live with empty spaces for a bit. You’ll make better choices.
Mistake 3: Forgetting Hidden Costs
People forget about:
- Delivery fees ($50 to $200)
- Assembly costs ($50 to $150 per item)
- Installation (hanging curtains, mounting TVs)
- Returns and restocking fees
- Tax (adds 5% to 10% to everything)
Budget for these extra costs from the start.
Mistake 4: Buying Poor Quality to Save Money
A cheap sofa that breaks in a year isn’t actually a deal. Picks should be durable to deliver a greater return on investment and years of use.
It’s better to:
- Save longer for quality
- Buy fewer pieces that last
- Get one good item instead of three cheap ones
Mistake 5: Not Measuring First
Price out items that meet your style, quality and comfort standards, but also measure your space first.
Buying furniture that doesn’t fit is expensive:
- Return shipping costs money
- Restocking fees add up
- You waste time shopping again
Always measure doorways, hallways, and room dimensions before buying.
Mistake 6: Ignoring Your Actual Lifestyle
Don’t buy:
- White sofas with kids or pets
- High-maintenance materials you won’t clean
- Trendy items you’ll hate in a year
- Formal furniture you’ll never use
Choose items that fit your real life, not some Pinterest fantasy.
Tracking and Adjusting Your Budget
Once you start shopping, track your spending carefully.
Use a Simple Spreadsheet
Once you have an overall budget for the room, you can start turning the plan into reality. As you purchase items, put the actual costs in and keep an eye on the total budget.
Your spreadsheet should have:
- Item description
- Budgeted amount
- Actual cost
- Where purchased
- Link or product number
- Notes
Review and Adjust
If you find a rug for less than expected, you may reallocate that money to splurge in another category. If paint costs more than expected, you may have to trim funds from the accessory line.
Stay flexible. Your budget is a guide, not a prison.
Track What You Own
Keep photos of:
- Furniture with tags (for warranty)
- Paint colors used
- Receipts
- Measurements
This helps with future purchases and returns.
Understanding Home Decor Trends and Costs
Current trends affect prices. By 2025, sustainable home decor products are expected to represent 30% of the market.
What’s Trending Now
Sustainable Materials: Consumers are seeking sustainable and eco-friendly products. Germany leads the way in this trend. Eco-friendly items often cost 20% to 30% more than regular options.
Smart Home Features: Smart features such as built-in charging ports or voice-controlled lighting differentiate offerings. These add $100 to $500 to furniture costs.
Natural Elements: Wood, stone, and plants are popular. Real wood costs more than fake finishes but lasts longer.
Warm Colors: Neutral tones and earthy colors are in style. This is good news because these colors stay current longer than trendy bold colors.
Trends to Skip for Budget Reasons
Ultra-Trendy Colors: That hot pink everyone loves now? You’ll hate it in two years. Stick with neutrals.
Fast Furniture: Super cheap, trendy items fall apart fast. They’re not worth even a small price.
Overly Specific Themes: A room that’s entirely “coastal” or “farmhouse” gets boring and costs more to update.
Regional Cost Differences
Where you live changes what you’ll spend. On average, the American household will spend $1,880.67 per year on home decor, but some states contribute significantly more.
High-Cost Areas
The average spend on decor per person in Florida is $823.28, and per household $2,074.64. California, Colorado, and Indiana also have higher average spending.
In expensive cities like New York, San Francisco, or Seattle:
- Furniture costs 20% to 30% more
- Designer fees are higher
- Delivery and assembly cost more
- Real estate is expensive so decor budgets are bigger
Lower-Cost Areas
Montana residents spend an average of only $603.59 per person on home decor, with an average budget per household of $1,521.05.
In smaller cities and rural areas:
- Furniture prices are lower
- Less competition means fewer sales
- Shipping costs more
- Designer options are limited
Shop online to get better prices if you live in a high-cost area.
Long-Term Budget Planning
Think beyond the first year.
Annual Maintenance Budget
The average homeowner will spend between 1% and 3% of their home’s value on repairs and maintenance each year. This is separate from decor but affects what you have available for furnishings.
For a $300,000 home:
- 1% = $3,000 per year
- 3% = $9,000 per year
Budget for both maintenance and decor separately.
Refresh Budget
Every few years, rooms need updates:
- New paint (every 5-7 years)
- New pillows and textiles (every 2-3 years)
- Furniture updates (every 7-10 years)
- Trend updates (as needed)
United States consumers often choose to engage in renovation and home decor projects every 3 to 5 years.
Set aside $500 to $1,000 per year for small updates and replacements.
Final Thoughts
Budgeting for home decor doesn’t have to be stressful. The key is planning ahead, knowing where to spend and where to save, and staying flexible as you shop.
Remember these main points:
- Budget $5,000 to $8,000 per room for mid-range quality
- Add 10% to 15% extra for unexpected costs
- Invest in items you use daily
- Save on accent pieces and accessories
- Shop slowly and intentionally
- Mix high and low purchases
- Track your spending as you go
Your budget should fit your life, your home, and your goals. There’s no perfect number that works for everyone. Start with what you can afford, prioritize what matters most, and build your dream home one room at a time.
Need help creating a home that fits your style and budget? The Rise Interiors team offers professional guidance to make your decorating project successful. Contact them today to discuss your project and get started.
Visit their portfolio for inspiration, read client testimonials to see real results, or explore their blog for more helpful decorating tips.