How Much Value Does a Kitchen Remodel Add?

The kitchen is one of the most important rooms in the house for buyers. Some people love preparing home-cooked meals throughout the week and use the kitchen as a gathering point. Modern kitchen trends reflect the value of this space, with more designers adding islands and seating options to accommodate family members and guests. 

This means when it’s time to sell a house, homeowners often focus their efforts on their kitchens. They know that a spacious, modern kitchen can appeal to buyers and potentially lead them to submit offers. Kitchen remodels can also boost home values, increasing the home’s final sale price. 

While your kitchen remodel might seem like a smart option, you need to track the return on investment (ROI) of this project. This can help you decide whether it’s worth the time and effort of updating your kitchen before listing your property. This guide will answer, “How much value does a kitchen remodel add?” and how you can decide if it’s right for you.

What Is the Average Kitchen Remodel ROI?

A kitchen remodel is one of the most lucrative projects you can invest in when improving your home to boost resale value. Experts estimate that a minor kitchen remodel can drive a 96% ROI, allowing you to recoup almost all of your costs when it’s time to move. 

In 2024, the cost of a minor kitchen remodel was around $27,492 and homeowners noticed a $26,406 return on investment when it came time to sell their homes. Very few projects have an ROI greater than 100%, so a kitchen remodel is often considered worth the cost. 

Keep in mind that this data is only for a minor kitchen remodel, which covers new cabinets, new countertops, and new appliances. More advanced projects that expand the kitchen, change its layout, and include plumbing or electrical work might not be as lucrative. 

Also, this data does not guarantee that your project will have a high ROI. Just because some homeowners get their money back in full following their kitchen remodeling project doesn’t mean you will. Different houses and real estate markets will affect demand and the impact that your remodel has on buyers. 

Factors That Influence the Added Value of Kitchen Remodeling

Calculating the impact that a kitchen remodel will have on resale value is difficult because there are so many factors to include in your research efforts. It’s almost impossible to highlight the specific impact a kitchen remodel had compared to other market factors or home improvements.

Here are a few factors that determine the ROI of minor kitchen remodels that you can consider before you start this project.

1. Scope of the Remodel

The scope is the first factor that can define your ROI. Large renovations can make a big difference but they can also drive up your cost. The more you spend, the more you will need to recoup in the home sale. 

Start with essential upgrades, like updating dated kitchen cabinets or replacing appliances that are starting to break. Then consider if other upgrades are worth it. While double sinks might appeal to more buyers, this renovation might not be worth the cost if you have to reconfigure all of the cabinets in your kitchen. 

There’s also the time cost that comes with these projects. Bigger renovations will take longer and will disrupt your life more. Make sure you are up for such major projects before you start the home sale and moving processes.

2. Materials and Finishes

The materials you use might not have the returns you expect. For example, if are replacing countertops, you don’t need to buy the highest quality materials if you have a starter or mid-size home. You don’t necessarily need to invest in custom cabinets when most buyers expect standard ones. 

Avoid the urge to overspend and create the kitchen of your dreams. This project is meant to modernize your home to appeal to the next people who live there. You can always build your dream kitchen in the next house you live in.

3. Market Trends

One of the hardest parts of doing a kitchen remodel is keeping up with customer trends. While your upgrades could be appealing if you are entering the real estate market immediately, you don’t want your kitchen to look outdated in a few years. Customer preferences change constantly and you could design an off-trend kitchen that slows the home sale. 

For example, some buyers love the idea of open-concept kitchens that create flow in the house. However, if this trend becomes stale, your renovation efforts could go to waste. 

This is another reason why you might be better off letting your buyers handle the kitchen redesign. They can chase whatever trend they want as they enjoy living in the home.

4. Neighborhood Comparisons

The improvements you make to the kitchen should align with comparative homes in the area. For example, if your kitchen is considerably dated compared to other listings, you could increase your resale value by renovating it. However, if your kitchen is in line with what potential buyers expect, then your improvements might not have much of an impact. 

Over-improving a kitchen compared to other homes in the area can also lead to diminished returns. You could increase your home’s resale value to the point where you price out buyers in the area. This could cause your home to sit on the market until the price is aligned with the neighborhood. 

Research other homes that are selling in your area and look at the kitchen space of each one. See how yours compares or could be matched with a few changes.

5. Current State of the Kitchen

One of the biggest factors that contribute to your ROI is the before and after of your kitchen design. Homes with outdated kitchens may see a higher ROI from upgrades than those with relatively modern designs. For example, if your appliances are decades old and the paint on the cabinets is peeling, minor changes will have a big impact. You don’t even need to invest in granite countertops to make the kitchen more appealing. 

Decide whether you are remodeling the kitchen because it needs it or because you want it to look newer. If it only needs a few minor upgrades, you might be better off leaving this project to the buyer.

What Types of Kitchen Remodels Add the Most Value?

Every kitchen remodel is different, which means the ROI will vary from one house to the next. However, you can increase your chances that your kitchen remodel improves your overall home value by investing in improvements that have high returns. Here are a few things to focus on with your kitchen renovation. 

• Install energy-efficient, stainless steel appliances. Stainless steel is a timeless choice that will match most design aesthetics. If you want to modernize your kitchen, look for smart appliances that connect to the Wi-Fi. 
• Replace outdated countertops with quartz or granite. Invest in quality and durability when it comes to your countertops. Try to choose classic colors and styles that are less likely to fall out of favor with potential buyers. You aren’t building your dream kitchen, you are trying to appeal to the maximum number of people. 
• Upgrade cabinetry. This could mean refacing, painting, or replacing your cabinets depending on their current condition. Cabinetry is one of the first indicators that a kitchen is worn or dated. 
• Add functional lighting. Along with improving the current lighting, consider adding extra lights under the cabinets or near the sink to make the kitchen more efficient. 
• Improve storage options. Look for pull-out shelves or custom pantry solutions that give buyers extra space for their items. Storage is almost always at a premium in the kitchen. 

The goal of your kitchen remodel is to balance cost with high-value improvements. For example, quartz countertops might be more expensive but they will appeal to more buyers. Consider how outsiders will view your home improvements so you don’t accidentally fall in love with trends that others don’t want.

How Much Should You Spend on a Kitchen Remodel?

You can spend several months and thousands of dollars on kitchen remodeling, but that doesn’t mean you should. The amount you invest in your kitchen should correlate to the overall value of the home. For example, someone buying a luxury house would expect higher-end appliances. A starter home won’t notice a high ROI from investing in expensive options. 

A rule of thumb used for kitchen remodeling is that you should spend between 5% and 15% of the home’s value on your kitchen remodel. For example, the median home price in Michigan is $263,000 so a kitchen remodel for that home price should cost between $13,000 and $39,000. The median home price in Florida is $405,000, bringing the expected renovation cost to $15,000 to $46,000. 

As you set your budget, decide what kind of kitchen remodels you want to invest in. A minor remodel involves budget-conscious updates that improve the cabinets, countertops, and appliances. Major remodels are full-scale renovations that completely change the layout of your kitchen. If you are exclusively investing in the remodel to increase your home’s value, focus on minor changes instead of major renovations. Most kitchens only need a few upgrades to look and feel new. 

Additionally, make sure you stay within budget during your kitchen remodeling efforts. The more you spend, the more you need to recoup in the home sale. A high ROI is never guaranteed.

How to Maximize the Value of Your Kitchen Remodel

As you calculate your kitchen remodel cost, take steps to maximize the value of what you spend money on. By focusing on your kitchen remodel ROI, you can increase the chances that your investments are spent on aspects that appeal to buyers. Here are a few tips to get the most out of your kitchen upgrades. 

• Prioritize functionality over aesthetics. Everyone has different preferences when it comes to kitchen designs. The custom cabinetry you love might be hated by the person who buys your home. Focus on increasing storage, improving the layout, and investing in other practical elements over flashy designs. No matter how much you try to appeal to the design preferences of buyers, you will never get the kitchen right. 
• Hire experienced professionals. Your kitchen remodel could actually hurt your home sale efforts if they are done poorly. A home inspector will identify any incorrectly installed cabinets, poor electrical work, and plumbing risks in the kitchen. You might end up paying more to remediate this low-quality work. It is better to pay licensed, trusted contractors when resale value is on the line. Even a minor kitchen remodel should be put in experienced hands. 
• Don’t over-Iimprove. Match the quality of the remodel to the home’s price point and neighborhood standards. You can want luxury kitchen upgrades that make your house feel like a Michelin-star restaurant, but that doesn’t mean these improvements will significantly increase your home value. Focus on practical upgrades, like energy-efficient appliances, that appeal to buyers without causing you to overspend. 

These three tenets can guide the design and purchase process of your kitchen remodel. Following these tips can increase your chances of striking a cost-value balance that gives you a high ROI. 

Consult With a Real Estate Agent Before Making Upgrades

There’s nothing wrong with investing in a kitchen remodel for yourself and your family. However, if you are specifically starting the project to increase your home value, you might want to wait. Talk to a real estate agent in your area and learn about the market. Your house might sell without any major or minor kitchen improvements.

A kitchen renovation project can be expensive and time-consuming and you might be better off simply listing your house as-is. A trusted Realtor can help you understand your potential kitchen remodel ROI and advise you to move forward or adjust your plans. 

Use FastExpert to find a real estate agent in your area. You can read agent profiles and get to know the leaders in your neighborhood. This is a low-stress option for finding Realtors with the experience you need. Talk to a Realtor through FastExpert before you start your kitchen remodeling project.