How Much Does a Kitchen Remodel Increase Home Value? ROI on Kitchen Remodels

If you want to upgrade your kitchen space’s functionality and beauty, there’s another upside besides a top-notch cooking environment: a substantial return on investment (ROI). For minor kitchen remodels, the average ROI is 96%, while major remodels yield an ROI of about 50% on average, according to Remodeling’s 2024 Cost vs. Value Report. On average, a kitchen remodel adds $13,500 to $25,920 in value to your home, depending on the extent of your project, its quality, and real estate trends.

Factors That Influence Kitchen Remodel Value

The most significant factor to consider when estimating how much a kitchen remodel increases home value is the size of the project. The quality of the job, materials, and timing also play a role.

Kitchen Remodel Size

Remodeling reports that the average minor kitchen remodel yields an ROI of 96%, while the average major kitchen remodel’s ROI is 50%. The main reasons for this disparity come down to cost and buyer appeal.

A minor kitchen remodel typically involves updates like painting cabinets, replacing countertops, and installing new appliances. These changes are usually more affordable and can make a big impact on the kitchen’s look and functionality. Since the costs are lower, homeowners see a higher return when they sell their home. 

A major kitchen remodel might involve tearing down walls, custom cabinetry, and high-end finishes. While these transformations can create your dream kitchen, they also come with a higher price tag. Not all buyers are willing to pay extra for luxury upgrades, so it can be harder to recoup the high initial costs in terms of resale value.

DIY vs. Hiring a Pro

Hiring the right pros for your kitchen remodel can ensure a better quality finish and ultimately boost its ROI. You’ll want to hire a local contractor who specializes in kitchen remodels. The contractor will oversee the project, from design to completion, making sure its finished on time and within a budget. A well-managed project reduces the risk of unexpected expenses, which can eat into your ROI.

The contractor coordinates all the necessary trades, including electricians, plumbers, and carpenters. Each of these pros brings specialized knowledge, access to quality materials, and warranties on their work—all of which make for a top-notch remodeling project to appeal to buyers.

Material Quality

High-quality materials not only enhance the look of your kitchen, but also contribute to its durability and long-term value. That doesn’t mean you need to overspend on materials—it’s about striking the right balance for an investment that pays off.

One way to maintain this balance is by focusing on high-impact areas, like countertops and cabinetry, where quality is most noticeable. For less prominent features, like backsplash tiles or drawer pulls, you can go with more budget-friendly options. 

Professionals can also help get the best quality materials at a reasonable price. They often have access to wholesale pricing or trade discounts and can help you choose materials that fit both your budget and design goals. 

Timing

How soon you sell after completing the kitchen remodel plays a crucial role in determining the remodel’s resale value. If you sell your home shortly after completing a kitchen remodel, you’re more likely to maximize your ROI. The kitchen will still have that “brand new” feel, and buyers will be drawn to the fresh, modern updates. 

The overall state of the real estate market is another reason why timing is important. Remodeling’s data gives a good picture of how this market can affect ROI over time: while minor kitchen remodels yield an average 96% ROI in 2024, that average was at about 71% in 2022. Here’s how it’s fluctuated over the past five years:

Source: Remodeling

Location

Your home's location can influence your kitchen remodel ROI. Overall market conditions, local material pricing variations, and whether you live in a region with a buoyant real estate market can impact whether a savvy remodel yields a higher return. 

Desirable features can also vary depending on your location. For example, the cost of installing sliding glass doors could be worth it to appeal to buyers in warmer regions where indoor-outdoor space is advantageous.

Upgrades and Finishes

You might assume a beautiful custom-designed kitchen remodel with unique, high-spec features will offer the best ROI. However, sometimes it pays to stick with using good-quality, classic materials. Overly personalized and bespoke kitchens can be off-putting for some buyers who prefer a neutral, blank canvas with timeless elements that don’t go out of style. They can then add accessories and appliances that suit their taste. 

How to Estimate the Added Value of a Kitchen Remodel

Estimating the ROI for a kitchen remodel can help you determine where to spend and how much value you can expect to add to your home. While every home and market is different, here are some steps to help you gauge how much your kitchen remodel could pay off:

1. Research local market trends. Pay attention to the types of homes that are selling quickly and for higher prices.

2. Consider the scope of your remodel. Whether you’re planning a minor or major remodel can make a difference between a 50% ROI and a 96% ROI, respectively. If you’re aiming to maximize your return, focus on a more modest remodel that freshens up the space without dramatically altering the kitchen’s layout.

3. Establish what the remodel will cost. Estimate the total costs involved, including materials, labor, and permits. Once you have a cost estimate, you can weigh the ROI against this cost to get an idea of the remodel’s added value.

4. Factor in timing. When do you plan to sell your home? The closer the home sale is to the completion of the kitchen remodel, the more likely you are to recoup more of the investment. 

5. Work with an appraiser. A property appraiser in your area can provide insights into what buyers are looking for and what types of kitchen upgrades will give you the best ROI. 

Which Kitchen Updates Have the Highest Returns?

It isn’t necessarily the most expensive upgrades that yield the highest returns. Often inexpensive, cosmetic DIYable kitchen refreshes offer a high ROI while producing a striking visual change. Reports suggest that a mid-range kitchen remodel offers an average 49.5% ROI, compared to a 38% ROI for an upscale remodel. Here are some kitchen updates that offer the best bang for your buck.

Flooring

Providing you don’t go overboard with premium marble or tricky-to-install miniature tiles, you can make a decent 70% or more ROI when installing new kitchen flooring. 

Countertops

You can reap over 75% ROI by replacing scratched, stained countertops. Investing in a durable material like quartz can make your kitchen more appealing to buyers. Opting for top-of-the-range, luxurious soapstone or marble might not be the best investment.

Cabinets

If they are still in good working order but look tired or outdated, refacing rather than replacing cabinets can offer an impressive ROI of over 80%.

Appliances

Outdated, inefficient ovens or refrigerators aren’t attractive to buyers. Investing in the right Energy Star appliances can offer 70% to 80% ROI.

Cost to Remodel a Kitchen

The average kitchen remodel costs around $27,000, with most projects ranging between $14,500 and $42,000. Minor kitchen remodels will cost on the lower end of that range, while major remodels have higher costs.

Supposing that you spend $20,000 on a minor kitchen remodel, its resale value would be $19,200 based on the average ROI. Meanwhile, spending $40,000 on a major remodel would amount to about $20,000 in resale value.

Is a Kitchen Remodel Worth It?

The estimated ROI of a kitchen remodel can be a helpful guide for deciding whether a kitchen remodel is worth it. Given that minor kitchen remodels offer an average ROI of 96%, a smaller, more focused remodel might be a better bet if your goal is to maximize financial returns.

The value of a kitchen remodel isn’t just about dollars and cents, though. A kitchen is the heart of the home, and improving it can enhance your daily life by making it a more comfortable, functional space. Here’s a breakdown of the pros and cons to help you decide:

How Angi Gets Its ROI Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners maximize the value of their investments, we gather ROI data from reputable sources, including industry reports, real estate studies, and interviews with market experts. We calculate the average resale value for projects by multiplying the ROI against the project’s average cost according to our cost data, which is sourced from thousands of real Angi customers. 

Want to help us improve our data? Send us a recent project quote or home appraisal value to [email protected]. Quotes and personal information will not be shared publicly.