How Much Does a Kitchen Remodel Increase Home Value?

How much does a kitchen remodel increase home value? This question is a complicated subject depending on location and more. Use this guide to see some statistics, learn why numbers aren’t the whole story, and see some of the best remodel elements from a value perspective. Let’s explore some strategies below for how to add value to your home from B&F Cabinet Stone & Floor.

By the Numbers

In considering how much a kitchen remodel does increase home value, we have to look at the statistics. According to the Remodeling Cost vs. Value Report for 2023, there is a wide range of ROI (Return On Investment) for kitchen remodels: nationwide, the average to expect is 30.7% to 85.7%. The more expensive the remodel, in general, the lower the return because so much more money was spent, so, typically, homeowners can expect a more favorable return for a minor fix than a complete overhaul. For example, the return on a midrange remodel garnered an average of 56.1% ROI, while a major remodel returns 31.7% of the money invested. 

The average remodel costs at least $150 per square foot, which leads to the 5 to 15% rule: the whole kitchen remodel will have a positive impact without losing money when it costs between 5 and 15% of the home’s value. Of course, this is not a perfect system for determining how to add value to your home, as home value is another fluctuating number. Numbers are not the whole story in understanding how much a kitchen remodel does increase home value.

Numbers Aren’t the Full Story

Statistics can give averages and snapshots when evaluating how much a kitchen remodel increases home value. Still, you don’t get the complete picture of how to add value to your home with raw numbers. The reason that “minor” kitchen renovations often have a higher ROI compared to “major” ones is that there isn’t as much cost involved. Replacing the cabinets in a kitchen can have a dramatic difference, and so can changing its entire layout. Still, if one costs much less than the other for around the same amount of return or value added to the home, then you can see that the minor change could be much better for the homeowner. 

When examining how much a kitchen remodel does increase home value, it’s essential to see that the full return is also not just in the home’s value of money alone; using a better kitchen brings more satisfaction, after all, so renovations that are going to be used are different than renovations to sell. Remodels have other purposes that have to be acknowledged. If you want to add value to your home right before selling, a kitchen remodel for $10,000 with a few critical features for boosted value and appeal will be better than a $60,000 new kitchen that only adds $40,000 to the home. On the other hand, if your family is living in the house for another few years, that $60,000 kitchen designed just the way you like, it could well be worth it. 

Of course, not every kitchen remodel is the same, and not every home is the same, either. Location is a massive factor in ROI for kitchen remodels. If your remodel puts your kitchen above the rest in the neighborhood where it used to be dated in comparison, or you put in highly desirable market features in our area, you’ll get much more bang for your buck. Compared to the Eastern seaboard, the same remodel gets about 12% higher ROI here on the Pacific Coast, and homeowners can expect an ROI of close to 93% on minor remodels here in CA. And what are those “minor remodels?” Let’s take a look at the best elements to include in your quest for how to add value to your home.

The Best Remodel Elements

There are a variety of elements that can be considered for how much a kitchen remodel does increase home value, but we recommend that a remodel include:

1. 1. New cabinets

   2. New countertops

   3. New floors

You don’t even have to change the layout to see dramatic results! And we aren’t the only ones who think cabinets, counters, and floors are the key to the kitchen renovation that is the secret for adding value to your home: Best Homes and Gardens names counter and cabinet replacements two of the best kitchen upgrades for cost value. The ROI for quartz kitchen countertop upgrades ranges explicitly from 60-80% on average, and it tends to be on the higher end here in California, as we’ve discussed. New floors are another great choice since up to 80% of the cost of new hardwood floors is generally recouped by homeowners when they sell the property. 

It can be costly to change the size or configuration of a kitchen, but not all renovations need this. You can simply replace outdated or inefficient features with high-quality updates and see the value (and satisfaction) rise dramatically. When looking at how much a kitchen remodel increases home value, recognizing the small but significant changes that can be made is vital. 

Remodel The Way That’s Right For You

How much does a kitchen remodel increase home value? Ultimately, each situation for a kitchen remodel will be unique. With all the numbers, considerations, and elements, it can be overwhelming to contemplate finding the way that’s right for you to remodel your kitchen and how to add value to your home. Luckily, you don’t have to go through this process alone. Reach out to B&F Cabinet Stone & Floor to get support every step of the way. 

We will come out to your home for a free consultation; you don’t even have to measure your kitchen yourself! As a supplier, contractor, and installer, we’ll help you from dreams to design conception to the finished product. Let’s make your dream kitchen a reality together! Then, you can tell others how much a kitchen remodel increases home value.