If you regard the kitchen as the focal point of a home, you’re not alone. Almost 42% of people agree that the kitchen is the essential room in a house. After all, it’s where you cook, eat meals, and gather with friends and family. 

That statistic also translates to potential home buyers. When searching for a place to call home, the kitchen is one of the main areas of interest. It is no surprise that one of the best ways to increase your home’s value is to upgrade your kitchen.

But how much does kitchen remodeling increase your home’s value? In this guide, you’ll find how to maximize your ROI for a kitchen renovation. Plus, you’ll find tips and tricks for budgeting, which kitchen features are best to upgrade, and more.

Why Are Kitchens So Important?

Kitchens are often the central point of the home. That’s because they contain all of the tools and appliances for cooking and eating. But, they also provide storage, places to sit, and opportunities for communication and connection.

Regarding other rooms and home features, kitchens consistently outrank garages, master bedrooms, and closet space. Potential home buyers typically see the kitchen as something they simply can’t compromise on.

Benefits of a Kitchen Remodel 

You might be hesitant to remodel your kitchen. After all, it’s a process that requires a lot of time and money. You’re often left with a space that’s no longer functional during a kitchen remodel.

Before you think, “why to bother?” know that a kitchen renovation can save you more money in the long term. You could be overpaying for power and water if you have outdated, rundown, or inefficient appliances and fixtures. By installing money-saving kitchen upgrades, your bills will go down and the functionality of your kitchen up.

Outdated appliances can also be unsafe, so updating your kitchen can create a safer home environment.

Not only that, but a kitchen remodel done right can increase your home’s value. In turn, both increase your chances of selling your home faster and for a higher price.

And by upgrading fixtures like cabinets and shelves or redoing your kitchen’s floor plan, you can increase pantry space and storage. This can help declutter a kitchen that feels cramped or untidy. 

When you renovate any space, you can choose the exact style and look you want. This can completely transform your kitchen, making it a place your family and friends congregate more. You’ll also enjoy your space more.

Lastly, this benefit might seem far-fetched, but it’s got the numbers to back it. A kitchen renovation can make you more inclined to cook and enjoy meals in your home rather than eat out, leading to a healthier lifestyle overall. According to a recent survey, one-third of people who recently upgraded their kitchen said they lived a more nutritious lifestyle post-remodel.

What Factors Affect ROI for a Kitchen Renovation?

If you’re trying to get as much of your money back as possible, examining a few factors affecting your ROI for a kitchen renovation is essential.

How Much the Remodel Costs

It seems evident that the main factor affecting ROI is the actual cost of the renovation. That’s why it’s essential to be very selective in your upgrades, so you can spend money on what features will make the most significant impact (and ultimately increase the most value) for your kitchen and home.

The average kitchen remodel can cost anywhere from $12,000 to $45,000. More luxurious renovations can cost $50,000 or more, while more minor upgrades may only cost a few thousand.

Location

The neighborhood or area you live in can affect the amount of return you see on your kitchen renovation. If you remodel your kitchen so that it’s no longer outdated or under-equipped compared to the rest of the neighborhood, then you can expect a higher ROI.

Also, you’ll typically see a higher ROI if you upgrade your kitchen with specific features that are desirable and valuable in your market. And, if your kitchen upgrade takes care of safety issues or helps your kitchen meet local codes for safety, you can also see a higher ROI.

The area you live in matters, so stay informed on what the market looks like around you.

Kitchen Upgrades

The upgrades you choose to go with also impact your ROI. While you might spend more on major appliance upgrades, it can pay off for you in the long run. Most people value upgraded efficient appliances in their kitchen, mainly because they get a lot of use out of them.

A new fridge, stove or oven, sink, or dishwasher can significantly impact your kitchen’s functionality. While these upgrades may cost more now, they also can drastically increase your home’s value.

Another major update you can make is with your kitchen cabinets. Cabinets can take up to 75% off your kitchen’s wall space, making a big difference when these are updated. It can increase storage, plus cabinets define the look of your kitchen, giving the area a nice facelift.

What’s the Average ROI for a Kitchen Remodel?

Now to the good part. The average ROI for a kitchen remodel in 2022 is around 71 percent. However, that percentage can vary significantly based on the number of upgrades made and the remodel cost.

A kitchen renovation that costs around $15,000 to $45,000 can translate to an ROI of 81 percent. So, when considering which features you’d like to upgrade, keeping these figures in mind can be helpful.

Best Kitchen Features for Increasing Home Value

As stated earlier, certain kitchen features can pay more in the long run than others. 

Cabinets play an essential role in making your kitchen more functional. Outdated, poorly designed kitchens decrease your storage space and can be a nightmare to use. When you have suitable cabinets, your kitchen looks more appealing, is easier and more enjoyable to use, and can be transformed into a more comfortable, functional space overall.

Countertops and backsplashes are other kitchen features that can benefit from an upgrade. While many options are available, every material isn’t created equal. 55% of home buyers will pay more for a kitchen with granite countertops.

While this material is more expensive, it’s been a popular trend among home buyers for years. To that end, backsplashes are an extension of your countertops. They contribute more to the style and aesthetic of your kitchen.

Luckily, this feature is typically inexpensive, but it carries a lot of importance. That’s because colorful or vibrant backsplashes can brighten up your room, while a classic neutral like white or grey can add a traditional, clean look to your kitchen’s countertops.

Appliances are another major upgrade that can increase your home’s value. To maximize your ROI, it’s usually best to select appliances that make your kitchen more energy efficient, eco-friendly, and in some cases, smart-device enabled. This is incredibly appealing to potential homebuyers.

Coordination

It’s also essential to make sure your appliances coordinate with one another and the rest of the kitchen for a cohesive look.

Flooring is another critical feature in your kitchen. They lay the groundwork for the rest of your space and play a significant role in your kitchen’s overall look and feel. Remodeling your floors with wood can increase your ROI to nearly 91 percent.

Hardwood floors are appealing for their durability, which is especially important for a space that gets used frequently like the kitchen. They can also be easily refinished rather than wholly replaced, which is another big pro.

Finally, finishing touches like a new coat or color of paint or updated light fixtures can significantly improve your space. These more minor updates can bring the entire renovation together. Plus, they’re typically inexpensive and relatively easy to do.

New hardware can also improve your kitchen’s aesthetic. The proper hardware can complement updated cabinets and give your space an entirely new look. 

Kitchen Remodeling Today 

Hopefully, you now know how much kitchen remodeling can increase your home’s value and ROI. By selecting the right features to upgrade and staying mindful of the market for your area, you can set yourself up for a profitable investment.

Ready to get started? Book an appointment today with Cyrus Construction. Experts in all things construction can help you restore your kitchen in no time.