In this article, we will explore the factors that affect the ROI of a kitchen remodel, the average costs and returns of different types of kitchen projects, and the best tips to maximize your kitchen remodel ROI. 

By the end of this article, you will have a better idea of what to expect from your kitchen renovation and how to plan it accordingly.

Key Takeaways

• The ROI of a kitchen remodel depends on several factors, such as the scope, quality, and style of the project, the local real estate market, and the time and money invested.

• According to Remodeling magazine, the average ROI for a minor kitchen remodel in 2020 was 77.6%, while the average ROI for a major kitchen remodel was 58.6%.

• To increase your kitchen remodel ROI, you should focus on improving the layout, functionality, and efficiency of your kitchen, rather than adding luxury or trendy features that may not appeal to buyers.

• You should also choose durable and timeless materials, colors, and finishes that match the style and price point of your home and neighborhood.

• You should also hire a reputable and experienced contractor, set a realistic budget and timeline, and obtain the necessary permits and inspections for your project.

Factors That Affect Kitchen Remodel ROI

Before we dive into the numbers, let’s first understand what factors influence the ROI of a kitchen remodel. 

Here are some of the main ones:

• The scope of the project. The scope of the project refers to how extensive and complex the kitchen remodel is. For example, a minor kitchen remodel may involve replacing cabinet fronts, countertops, and appliances, while a major kitchen remodel may involve changing the layout, moving walls, plumbing, and electrical work, and installing new cabinets, flooring, and lighting. Generally, the larger the scope of the project, the higher the cost and the lower the ROI.

• The quality of the project. The quality of the project refers to the level of craftsmanship, materials, and finishes used in the kitchen remodel. For example, a high-quality kitchen remodel may use custom cabinets, natural stone countertops, and professional-grade appliances, while a low-quality kitchen remodel may use stock cabinets, laminate countertops, and basic appliances. Generally, the higher the quality of the project, the higher the cost and the higher the ROI.

• The style of the project. The style of the project refers to the design and aesthetic choices made in the kitchen remodel. For example, a modern kitchen remodel may use sleek and minimalist features, such as flat-panel cabinets, stainless steel appliances, and quartz countertops, while a traditional kitchen remodel may use ornate and classic features, such as raised-panel cabinets, wood appliances, and granite countertops. Generally, the more neutral and timeless the style of the project, the higher the ROI, as it will appeal to a wider range of buyers.

• The local real estate market. The local real estate market refers to the supply and demand, prices, and trends of homes in your area. For example, if you live in a hot market where homes sell quickly and for top dollar, you may have a higher ROI for your kitchen remodel, as buyers will be willing to pay more for a updated and attractive kitchen. On the other hand, if you live in a cold market where homes sit on the market for a long time and sell for below asking price, you may have a lower ROI for your kitchen remodel, as buyers will have more options and bargaining power.

• The time and money invested. The time and money invested refer to how long and how much it takes to complete the kitchen remodel. For example, if you do the kitchen remodel yourself or hire a cheap and inexperienced contractor, you may save money upfront, but you may also spend more time and face more problems and delays, which can lower your ROI. On the other hand, if you hire a reputable and experienced contractor, you may pay more upfront, but you may also save time and avoid costly mistakes and rework, which can increase your ROI.

Average Costs and Returns of Kitchen Remodels

Now that we know what factors affect the ROI of a kitchen remodel, let’s look at some average costs and returns of different types of kitchen projects. 

According to Remodeling magazine’s 2020 Cost vs. Value Report, which compares the average costs and resale values of 22 common home improvement projects across 101 U.S. markets, here are the national averages for kitchen remodels:

• Minor kitchen remodel. A minor kitchen remodel involves replacing cabinet fronts and hardware, installing new countertops, sink, faucet, and appliances, painting the walls and trim, and replacing the flooring. The average cost of a minor kitchen remodel in 2020 was $23,452, while the average resale value was $18,206. This means that the average ROI for a minor kitchen remodel was 77.6%.

• Major kitchen remodel (midrange). A major kitchen remodel (midrange) involves replacing all the cabinets and appliances, installing new countertops, sink, faucet, lighting, and flooring, and painting the walls and trim. The average cost of a major kitchen remodel (midrange) in 2020 was $68,490, while the average resale value was $40,127. This means that the average ROI for a major kitchen remodel (midrange) was 58.6%.

• Major kitchen remodel (upscale). A major kitchen remodel (upscale) involves installing custom cabinets, natural stone countertops, professional-grade appliances, built-in microwave and refrigerator, undermount sink, designer faucet, lighting, and flooring, and adding a tile backsplash and an island. The average cost of a major kitchen remodel (upscale) in 2020 was $135,547, while the average resale value was $72,993. This means that the average ROI for a major kitchen remodel (upscale) was 53.9%.

As you can see, the average ROI for kitchen remodels varies depending on the type of project, but it is generally around 50% to 80%. 

However, these are national averages, and the actual ROI for your kitchen remodel may be higher or lower depending on your location, home value, and personal preferences.

Tips to Maximize Your Kitchen Remodel ROI

If you want to get the most bang for your buck from your kitchen remodel, here are some tips to follow:

• Focus on improving the layout, functionality, and efficiency of your kitchen. The main purpose of a kitchen remodel is to make your kitchen more comfortable and convenient to use, not to add unnecessary or extravagant features that may not suit your lifestyle or taste. For example, you may want to create more counter and storage space, install energy-efficient appliances and lighting, and optimize the workflow and traffic of your kitchen. These improvements will not only enhance your enjoyment of your kitchen, but also increase its appeal and value to potential buyers.

• Choose durable and timeless materials, colors, and finishes. When selecting the materials, colors, and finishes for your kitchen remodel, you should opt for quality and longevity over trends and fads. For example, you may want to choose natural wood or painted cabinets, neutral or earthy tones, and matte or satin finishes, rather than flashy or trendy options that may go out of style or wear out quickly. These choices will not only save you money and maintenance in the long run, but also create a classic and elegant look that will stand the test of time.

• Match the style and price point of your home and neighborhood. When designing your kitchen remodel, you should consider the style and price point of your home and neighborhood, and avoid going too far above or below them. For example, if you live in a modest and cozy home in a family-friendly neighborhood, you may want to avoid installing a lavish and extravagant kitchen that will look out of place and overpriced. On the other hand, if you live in a luxurious and spacious home in an upscale neighborhood, you may want to avoid installing a cheap and basic kitchen that will look underwhelming and undervalued. By matching the style and price point of your home and neighborhood, you will create a harmonious and balanced look that will attract more buyers and command a higher price.

• Hire a reputable and experienced contractor. One of the most important decisions you will make for your kitchen remodel is choosing the right contractor to execute your vision. A good contractor will not only provide quality workmanship, materials, and service, but also help you with planning, budgeting, permitting, and troubleshooting. A bad contractor, on the other hand, may cause delays, errors, and disputes, which can ruin your experience and lower your ROI. Therefore, you should do your research, check references and reviews, and compare bids and contracts before hiring a contractor for your kitchen remodel.

• Set a realistic budget and timeline. Another key factor for a successful kitchen remodel is setting a realistic budget and timeline for your project. A realistic budget will help you prioritize your needs and wants, allocate your funds wisely, and avoid overspending or underestimating. A realistic timeline will help you plan your schedule, coordinate with your contractor and suppliers, and avoid rushing or procrastinating. To set a realistic budget and timeline, you should consult with your contractor, research the costs and durations of similar projects, and add a contingency fund and buffer time for unexpected expenses and delays.

Conclusion

A kitchen remodel is a major home improvement project that can improve your quality of life and increase the value of your home. 

However, the ROI of a kitchen remodel depends on several factors, such as the scope, quality, and style of the project, the local real estate market, and the time and money invested. 

By following the tips we shared in this article, you can maximize your kitchen remodel ROI and enjoy the benefits of a beautiful and functional kitchen for years to come.