From updating outdated appliances to installing modern fixtures and finishes, a well-planned kitchen remodel can enhance the aesthetics and functionality of a home. But if you’re reading this, you’re probably asking exactly how much value does a kitchen remodel add—and is the return-on-investment (ROI) worth it?
While we offer some insights below, determining the ROI for a kitchen remodel can be complex. It requires a deep understanding of the real estate market, as well as the latest trends and innovations in kitchen design. And, of course, the exact ROI will depend on variable factors, including the size of the kitchen and current market conditions.
In this article, we provide a comprehensive overview of kitchen remodels and their potential impact on a property's ROI. Keep reading for some interesting statistics, tips, and ideas regarding kitchen remodels.
How Much Value Does a Kitchen Remodel Add?
According to Remodeling Magazine’s 2022 Cost vs. Value Report, kitchen remodels have a national average ROI between 52.5% and 71.2%. Generally, larger and more extensive remodels project see lower returns than smaller projects. This means homeowners tend to see more favorable returns for replacing outdated countertops than completely rearranging the kitchen layout.
Here are the detailed findings from the aforementioned report::
Minor Kitchen Remodels: 71.2% ROI
Minor kitchen remodels cost an average of $28,279 to complete and increased the average home’s resale value by $20,125.
Midrange Major Kitchen Remodels: 56.1% ROI
Midrange kitchen remodels cost an average of $80,809 to complete and increased the average home’s resale value by $45,370.
Upscale Major Kitchen Remodels: 52.5% ROI
Upscale kitchen remodels cost an average of $158,015 to complete and increased the average home’s resale value by $83,025.
Kitchen Remodel Cost Variations
It's important to keep in mind that the exact ROI of a kitchen remodel can vary widely depending on the specific circ*mstances of each project. Homeowners should work with experienced professionals who can provide guidance on how to achieve the best ROI for their particular property and budget.
Key Upgrades to Consider for a Kitchen Remodel
There are certain upgrades that can have a more significant impact on the overall value of a property. Here are some to consider:
New Appliances
Upgrading to new, energy-efficient appliances is a popular choice to enhance the functionality and aesthetics of a kitchen. According to iBuyer.com, replacing appliances can increase a home’s resale value by up to 7%.
Durable Countertops
Replacing outdated or worn countertops with high-quality materials, such as granite or quartz, can significantly enhance the look and feel of a kitchen. The ROI for quartz kitchen countertop upgrades is 60%-80%, according to PureWow.
Hardwood Flooring
Installing new flooring can give a kitchen a fresh, modern look while also increasing the value of a property. According to realtor.com, homeowners can generally expect to recoup up to 80% of the cost of a new hardwood flooring installation when they sell.
Kitchen Lighting
According to Consumer Reports, energy-efficient LED lights can potentially increase your home’s resale value by up to 3%.
Remember, it's important to work with experienced professionals who can help guide the selection and installation process to ensure the best ROI for each upgrade.
Important Considerations for Luxury Kitchen Remodels
If you’re a high-end homeowner or interior designer, you may look to elevate your living spaces with high-quality materials, custom cabinetry, and premium appliances to create a truly luxurious and functional kitchen. By incorporating modern kitchen ideas into your remodel, you can create a space that not only adds value but also enhances your daily routines.
Here are some common luxury upgrades to consider for your kitchen:
Custom Cabinetry
High-end cabinetry can be customized to fit a homeowner's specific needs and preferences. This can include features such as soft-close drawers, built-in storage, and unique finishes.
High-Quality Materials
Well-appointed kitchens often feature high-quality materials such as solid brass faucets, natural stone backsplashes, and 16-gauge stainless steel sinks.
Premium Appliances
Luxury kitchen remodels often incorporate top-of-the-line appliances, such as a commercial-grade range, built-in refrigerator, or wine fridge.
Layout Rearrangement
A high-end kitchen project may involve changing the layout. This often includes adding or removing an island, or tearing down walls to create space for open kitchen ideas.
As mentioned above, the average high-end kitchen remodel in the U.S. saw a 52.5% ROI upon resale in 2022.
Should You Renovate Your Kitchen Before Selling?
When considering a kitchen remodel to increase the value of your home, it's important to weigh the costs and benefits of each upgrade. While a kitchen remodel can certainly add value to your home, the amount can vary based on the scope and location of the renovation, as well as the materials and craftsmanship involved.
Ultimately, the decision to renovate your kitchen before selling should be based on your individual circ*mstances and the advice of professionals.
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