A gut rehab is the deep end of remodeling: you take a home down to the studs — sometimes to the joists and masonry — and rebuild it as the house it should have been. It’s also where the most can go sideways if the sequence and scope aren’t nailed down first. We’ve gut-rehabbed Chicago greystones, two-flats, and bungalows since 2000, so here’s the honest timeline, the real costs, and the order the work actually happens in.
Chicago Gut Rehab (Quick Summary)
| Question | Short Answer |
|---|---|
| Typical cost per sq ft | $150 – $300+ |
| Typical whole-home range | $200,000 – $600,000+ |
| Usual timeline | 6–12 months |
| Biggest variable | What’s hiding behind old walls |
What “Gut Rehab” Actually Means
In a true gut, we strip the interior back to framing: out go the old plaster, wiring, plumbing, ductwork, and finishes. That’s the point — it lets us correct decades of patchwork, bring everything to current code, reconfigure the floor plan, and build in modern systems. In Chicago’s older housing, this is often the smartest path because the vintage electrical and plumbing were going to need replacing anyway.
Realistic Cost
Most Chicago gut rehabs land between $150 and $300+ per square foot, which puts a whole-home rehab in the $200,000–$600,000+ range depending on size, structural work, and finish level. The spread is wide for a reason: what we find once the walls are open — foundation issues, rot, knob-and-tube wiring, failed cast-iron drains — moves the number. Our job is to investigate enough up front that those become known scope, not mid-project shocks.
The Order of Work
A gut rehab follows a sequence, and skipping ahead is how projects stall. The rough order:
- Design & permits — drawings, structural engineering, city plan review.
- Demolition — strip to the studs and haul out.
- Structural & foundation — repairs, new openings, beams.
- Rough-ins — framing, then plumbing, electrical, and HVAC.
- Inspections & insulation — pass rough inspections, then close walls.
- Drywall & finishes — trim, cabinets, tile, paint, flooring.
- Final inspections & punch list — the last details before you move in.
Timeline & Permits
Plan for 6 to 12 months start to finish. A gut rehab is a full-permit project in Chicago — stamped drawings, structural review, and multiple trade inspections along the way. The design and permit phase alone can take a couple of months, so we run it in parallel with planning to protect the schedule. Trying to compress this stage is where most rehabs lose time, not gain it.
How Pegasus Runs a Gut Rehab
One team handles design, engineering, and construction under a single design-build contract, so there’s no finger-pointing between an architect and a builder when something behind the wall surprises us. You get a fixed price set up front and the developer mindset on every decision — we steer the money toward what builds the most value and equity in the finished home. See our pricing center to start scoping.
Frequently Asked Questions
Most Chicago gut rehabs run $150-$300+ per square foot, putting a whole-home rehab around $200,000-$600,000+ depending on size, structural work, and finish level.
Typically 6 to 12 months from design through final inspection. The design and permit phase can take a couple of months on its own, so we run it in parallel with planning to protect the schedule.
Design and permits, demolition, structural and foundation work, framing and rough-ins (plumbing, electrical, HVAC), inspections and insulation, drywall and finishes, then final inspections and punch list.
Because the biggest variable is what’s behind the old walls: foundation issues, rot, knob-and-tube wiring, or failed cast-iron drains. We investigate up front so those become known scope in your fixed price, not surprises.
Yes. A gut rehab requires stamped architectural and structural drawings, full city plan review, and multiple trade inspections as the work progresses.
Often, yes. It lets you replace aging electrical and plumbing that needed work anyway, bring everything to code, and reconfigure the layout, building real equity into a vintage home.
Gut Rehabs Across Chicago
Pegasus Construction designs and builds full gut rehabs throughout Chicago and the North Suburbs. Explore remodeling in your neighborhood:
