When it comes to home remodeling, kitchens and bathrooms are the most popular rooms to renovate—and for good reason. These spaces not only offer some of the most transformative improvements in terms of functionality and aesthetics, but they also provide significant returns on investment (ROI). Whether you’re looking to increase your home's value before selling or just want to enjoy an upgraded living space, kitchen and bathroom remodels are often a smart financial decision.
But not all renovations offer the same ROI. In this blog, we’ll dive into which kitchen and bathroom remodeling projects yield the highest returns and why.
1. Why Kitchens and Bathrooms Are So Important
Kitchens and bathrooms are the most-used rooms in the home. The kitchen is often the heart of the house, where families gather for meals, entertain guests, and even work from home. Bathrooms, meanwhile, are personal sanctuaries for relaxation and rejuvenation. Potential buyers know this, which is why these spaces carry so much weight in the resale value of a home.
Renovating these rooms can make daily life more comfortable while also making your home more appealing to buyers if you plan to sell.
2. Top Kitchen Remodeling Projects That Deliver ROI
When it comes to kitchen remodels, not all projects offer the same bang for your buck. Let’s take a look at the upgrades that offer the best return on investment:
a. Minor Kitchen Remodel (Midrange)
One of the best ways to improve the look and feel of your kitchen without breaking the bank is to opt for a minor remodel. This typically includes:
Refacing cabinets instead of replacing them
Upgrading countertops (e.g., quartz or granite)
Replacing old appliances with energy-efficient models
Adding a fresh coat of paint or new backsplashes
Upgrading lighting fixtures
According to Remodeling Magazine’s 2023 Cost vs. Value report, a minor kitchen remodel can recoup around 80% of its cost when selling your home. This is because buyers appreciate the visual appeal of a fresh kitchen without needing to invest in major structural changes.
b. Major Kitchen Remodel (Midrange)
A major kitchen remodel includes larger updates such as:
Replacing cabinetry entirely
Expanding the kitchen (if possible)
Installing an island
Updating plumbing and electrical systems
Adding high-end appliances
While these improvements provide a luxurious, modern kitchen experience, the ROI for major kitchen remodels tends to be slightly lower than minor remodels, with around a 70-75% return. This is because large-scale kitchen remodels often involve more extensive (and expensive) work. However, if the kitchen is outdated or doesn’t meet modern standards, these upgrades could make a big impact on home value.
c. Kitchen Upgrades That Offer Maximum Value
Some specific upgrades that tend to provide excellent ROI in a kitchen remodel include:
Energy-efficient appliances: Buyers love saving on utility bills, and upgrading to ENERGY STAR-rated appliances can increase your home’s appeal.
Quartz countertops: Quartz is durable, stylish, and low maintenance, making it a top choice for kitchen renovations.
Updated cabinetry: Refaced or entirely new cabinets can modernize a kitchen quickly, giving it a polished look that buyers appreciate.
Modern lighting: Adding under-cabinet lighting or pendant lights over an island can significantly improve both functionality and aesthetics.
3. Top Bathroom Remodeling Projects That Deliver ROI
Bathrooms are another area where renovations can have a significant impact on both daily life and home value. Here are the top bathroom remodels that give the best return:
a. Midrange Bathroom Remodel
A midrange bathroom remodel usually involves:
Replacing fixtures (sinks, toilets, faucets)
Installing a new vanity
Updating tile flooring or walls
Replacing the shower or bathtub
This type of bathroom remodel can recover about 67-72% of the investment, according to the same 2023 Cost vs. Value report. It’s a smart choice for homeowners looking to refresh the bathroom without a complete overhaul.
b. Upscale Bathroom Remodel
An upscale bathroom remodel is a more comprehensive project that may include:
Custom cabinetry
High-end materials like marble or natural stone
Luxurious features like a freestanding tub, rain shower, or heated floors
Expanded space or reconfiguration of the layout
While these features can create a spa-like bathroom experience, the ROI for upscale bathroom remodels is typically around 55-60%. Upscale remodels are more about the personal luxury you’ll enjoy than maximizing ROI.
c. Bathroom Upgrades That Offer Maximum Value If you're looking to maximize the ROI of your bathroom remodel, here are a few smart upgrades:
Walk-in showers: More homeowners prefer walk-in showers over bathtubs, making this a valuable addition.
New tile and flooring: Modern, sleek tile options can transform a bathroom’s look and increase its appeal.
Upgraded fixtures: High-efficiency toilets, sinks, and showerheads can reduce water usage, which is an attractive feature for eco-conscious buyers.
Vanity upgrades: A stylish vanity with ample storage and countertop space adds both function and luxury to any bathroom.
4. Kitchen vs. Bathroom: Which Remodel Gives the Best ROI?
While both kitchen and bathroom remodels provide great value, kitchens tend to deliver slightly better ROI, especially when the remodel is modest. A minor kitchen renovation can provide an 80% return, while midrange bathroom remodels usually recoup about 67-72%.
That said, the best project for you depends on your home’s specific needs. If your kitchen is in good shape but your bathrooms feel dated, investing in a bathroom remodel may make more sense. On the other hand, a kitchen that lacks functionality or style might be the better option for improvement.
5. How to Maximize ROI on Your Remodel
If maximizing ROI is your top priority, keep these tips in mind:
Don’t over-improve: Renovations that far exceed the standard for your neighborhood may not give you the ROI you expect. Aim for improvements that align with the value of other homes in the area.
Focus on functionality: Practical upgrades like better storage, efficient layouts, and modern appliances or fixtures will attract more buyers than purely aesthetic changes.
Choose timeless designs: Opt for classic, neutral designs that will appeal to a wide range of buyers instead of following fleeting trends.
Whether you’re planning a kitchen or bathroom remodel, it’s essential to think about both your personal enjoyment and the potential return on investment. Kitchens often provide the best ROI, but bathrooms can also deliver solid returns, especially if you focus on midrange improvements.
By making smart, functional upgrades, you can ensure that your remodeling project not only enhances your home’s value but also adds comfort and style for years to come.
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