Bathroom renovations are one of the top home improvement projects that can provide a strong return on investment (ROI). A beautifully updated bathroom not only increases your enjoyment of your home, but adds real monetary value when it comes time to sell. However, not all bathroom remodels are equal when it comes to recouping your investment. Understanding bathroom remodel return on investment is key to planning a project with maximum resale value in mind.
How Bathroom Remodels Increase Home Value
There are several reasons why bathroom remodels in particular can boost a home’s worth:
- Buyers place high importance on updated, well-designed bathrooms with elegant finishes. An outdated bathroom can deter buyers.
- Bathrooms are one of the most used rooms, so improving function and layout adds value for owners long-term.
- Fixing structural issues like leaky showers prevents costly future repairs that would lower home value.
- Improved storage, new lighting and other upgrades make the space more enjoyable and livable for years to come.
- Universal design upgrades like walk-in showers increase accessibility, expanding the potential buyer pool.
- Energy efficient toilets, faucets and lighting save on utility bills, a major perk for buyers.
- New plumbing and electrical systems are safer and meet current code requirements.
The scope of the remodel, quality of materials selected, and current trends all impact the return you can expect to achieve.
Average Bathroom Remodel ROI
According to the 2021 Remodeling Magazine Cost vs. Value Report, the following are the average ROI for various types of bathroom remodels nationally:
- Minor remodel – 69.6% ROI
- Midrange remodel – 64.5% ROI
- Upscale remodel – 56.6% ROI
- Universal design remodel – 70.9% ROI
Regional ROI averages vary within 10-15% of the national ones above. Minor remodels generally provide the highest ROI, while lavish upgrades have diminishing returns. However, even higher end projects still recoup over half of the investment on average.
Maximizing Your Bathroom Remodel ROI
Follow these tips to maximize the return on your bathroom remodel investment:
- Add universal design features – Walk-in showers, grab bars, and accessible sinks retain appeal for all buyers.
- Focus on visible elements – New counters, sinks, toilets, lighting and tiles make the most impact.
- Keep layout improvements functional – Good lighting, storage and flow matter more than cosmetics.
- Use timeless classic finishes – Avoid bold temporary trends to retain appeal as tastes change.
- DIY where reasonable – Sweat equity saves on labor costs for projects like painting.
- Get multiple quotes – Compare material costs from several suppliers before committing.
- Upgrade ventilation – Prevent mold and moisture damage with a new fan or window.
- Make safety improvements – Update old electrical, add GFCIs and slip-resistant flooring.
- Add storage – Build in cabinetry, shelving and other storage space.
- Refinish existing materials – Refinishing tile and repainting cabinets costs less than replacing.
READ ALSO: The 2024 Hottest Bathroom Trends
Major Bathroom Remodel Types
The scale of your bathroom renovation will significantly impact your potential ROI. Here are major types of bathroom remodels and their typical ROIs.
Minor Remodel
A minor remodel focuses on simple surface-level updates like:
- New paint, wallpaper, trim
- Lighting and hardware upgrades
- Vanity and mirror replacement
- New linens, accessories
Average Cost: $2,500-$5,000
Average ROI: 70%
Midrange Remodel
A midrange remodel often includes:
- New tub/shower surround and fixtures
- Updated vanity, countertops, sinks, medicine cabinets
- Tile flooring
- Drywall, trim, doors, paint
- Improved storage solutions
- New lighting, fans, mirrors
Average Cost: $15,000-$25,000
Average ROI: 65%
Upscale Remodel
An upscale remodel transforms everything with high-end finishes like:
- Expanded footprints or layout changes
- Custom cabinetry and storage solutions
- Heated floors
- Natural stone counters and tile
- Freestanding soaking tub
- Glass shower enclosures
- Smart home technology
Average Cost: $50,000+
Average ROI: 55-60%
Universal Design Remodel
A universal design bathroom remodel focuses on aging-in-place upgrades:
- Grab bars and handrails
- Curbless showers and comfort height toilets
- Raised vanities and open under-sink clearance
- Adjustable/hand-free faucets
- Improved lighting and non-slip floors
Average Cost: $15,000-$35,000
Average ROI: 70%+
Strategic High-ROI Bathroom Improvements
Beyond full remodels, you can also target specific high-ROI bathroom upgrades:
New Tub/Shower Surround
Replacing worn and outdated tub and shower surrounds provides a huge visual impact. New enclosures make the space look fresh and updated.
Average Cost: $1,500-$4,000
Average ROI: 75%
New Flooring
With many budget-friendly options available, new bathroom flooring instantly modernizes. Tile, vinyl plank, and linoleum are great choices.
Average Cost: $600-$2,000
Average ROI: 80%
Contemporary Vanity
An updated vanity cabinet and counter adds style and functionality. Fixture placement improves workflow.
Average Cost: $1,200-$3,500
Average ROI: 75%
Added Storage
Built-in shelving, cabinets and drawers give buyers more space to organize bathroom essentials.
Average Cost: $300-$1,000
Average ROI: 80%
Improved Lighting
New fixtures and added sconces or vanity lighting creates an inviting, spa-like ambiance.
Average Cost: $300-$1,000
Average ROI: 80%
To Recap
Smart investments in bathroom remodels can yield over 70% ROI, with the right combination of upgrades that appeal to buyers, increase functionality, and prevent costly repairs down the road. Avoid overspending on lavish finishes and focus on durable surfaces, improved storage, better lighting and accessibility. Timeless style, safety and added conveniences are bathroom updates buyers will appreciate and pay for. With careful planning and strategic design choices, your bathroom project can pay for itself when you go to sell.
FAQs About Bathroom Remodel ROI
How much does a half bath remodel increase home value?
A minor remodel of a half bath costs $2,500-$5,000 on average and boosts home value about $1,750-$3,500, for an ROI of 70%. Focus on fixtures, flooring, lighting and paint.
What is the ROI on a master bathroom remodel?
Expect a 65% ROI from a midrange master bath overhaul costing $15K-$25K, returning $9,750-$16,250 in home value. Higher end remodels still yield 55-60% ROI but have lower absolute dollar returns.
Should I remodel the bathroom before selling a house?
If your bathroom is outdated or dysfunctional, a remodel can certainly boost listing appeal. But avoid over-improving with ultra high-end finishes that may get limited return. Talk to a local realtor for advice.
What increases home value more – kitchen or bathroom remodel?
While both boost value, kitchens give slightly higher ROI at 65-75% versus 55-70% for bathrooms. However, a minor bathroom update is more affordable and still nets 70% ROI to make your home more marketable.
How do I add a bathroom on a budget?
Converting a closet or stealing space from adjacent rooms costs less than adding onto the house footprint. Stick with mid-priced fixtures and surfaces. Shower/tub combos save over pricier tiled walk-ins.
Should I splurge on any parts of a bathroom remodel?
Yes,allocating more budget for durable surfaces like counters and flooring makes sense. These elements show wear over time so quality stone or tile avoids frequent replacement. Also spend on good lighting.
What small bathroom updates add the most value?
Swapping out faucets, sinks, toilets and lighting are affordable upgrades that make bathrooms look fresh and updated. Painting dingy walls white also brightens. Tackle these first for about $2,500 total.
In another related article, 9 Critical Questions to Ask Before Hiring a General Contractor
