Ask any real estate expert and they will tell you that the renovation with the greatest return on investment is the kitchen. The kitchen is the heart of the home, and it is the room that most prospective buyers look at first. So, it makes sense that a kitchen renovation would add value to your home. But how much of a return on investment can you expect to see?
There are many factors that contribute to the return on investment of a kitchen remodel. Here’s a breakdown of average ROI based on the scale of the project:
Bigger is not necessarily better in terms of ROI on a kitchen remodel. The trend seems to be that the more you spend, the less you recoup value wise! The average national ROI for a major kitchen remodel is 54%. That means if you spend $75,000 on a remodel, you will have added $40,500 in value to your home.
A mid-range kitchen remodel offers a slightly higher return than a super high-end remodel at 59%. That means if you spend 30K on your reno, you can expect to see about $17,700 back in value. The reason these types of remodels don’t necessarily pay off like a minor reno is simple: taste. Not everyone likes expensive, flashy trends, while everyone can get on board with classic cabinets and new appliances.
As it turns out, a minor kitchen renovation is the most profitable! The national average ROI for a renovation under 25K is 81%. That means if you spend $15,000, you can expect to recoup as much as $12,150. Depending on the region you live in and how low you manage to keep your costs, what you spend on your renovation could even be completely covered by the value it adds to your home.
The easy conclusion here is that your kitchen remodel doesn’t have to cost thousands upon thousands of dollars to add real value to your home. Investing in smaller timeless upgrades, like classic white cabinets, and some new appliances will provide a better ROI than if you were to spend 50K on high-end finishes.
If you are considering a kitchen remodel and want to maximize your return on investment, you can keep your costs low by ordering cabinets with the Cowry Kitchen Designer app. Cabinets are traditionally the most expensive piece of a renovation, but with Cowry, you can get high-quality real wood cabinets in classic styles for as low as $999 USD. Cowry is able to offer the most competitive price point for cabinets on the market because they are shipped directly from the manufacturer.