Kitchen or Bathroom Renovation: Which Gives the Best ROI?

Home renovations are among the most effective ways to increase property value, but deciding where to invest can be challenging. For homeowners looking to maximize resale value, general contractors play a crucial role in helping them make the right renovation choices.

Two of the most impactful remodels—kitchens and bathrooms—often take center stage in a home’s overall appeal. But which one offers the best return on investment (ROI)? The answer depends on several factors, including costs, market trends, and buyer preferences. Understanding the potential return on kitchen and bathroom remodels can make all the difference in ensuring a profitable investment.



Why ROI Matters in Home Renovations

Whether you're a homeowner looking to enhance your living space, an investor aiming to maximize resale value, or a seller preparing a home for the market, ROI is a crucial consideration. Remodeling projects should not only improve functionality and aesthetics but also deliver financial benefits when it’s time to sell.

Both kitchen and bathroom remodels consistently rank among the top home improvements for boosting property value, but their impact can vary based on the extent of the renovation, local market conditions, and buyer expectations.

Kitchen Remodel ROI: The Heart of the Home

Kitchens often serve as the focal point of a home, making them one of the most important spaces for potential buyers. A well-executed kitchen remodel can significantly increase property value, but costs vary depending on the scope of the project.

Average Costs & ROI

Minor Kitchen Remodel (Cosmetic updates like refacing cabinets, new countertops, upgraded appliances)

• Cost: $25,000–$30,000
• ROI: 75%–85%

Major Kitchen Remodel (Full renovation with high-end materials, custom cabinetry, layout changes)

• Cost: $60,000–$80,000
• ROI: 55%–70%

Why Kitchens Deliver Strong ROI

• First impressions matter – Buyers often make quick decisions based on the kitchen’s condition.
• Functionality & modern appeal – Open layouts, updated countertops, and smart appliances are in high demand.
• Emotional connection – A beautiful, well-designed kitchen can create a lasting impression on buyers.

Bathroom Remodel ROI: A Small Space with Big Impact

Bathrooms may not take up as much square footage as kitchens, but their importance in a home’s overall value is undeniable. Outdated or poorly designed bathrooms can be deal-breakers for buyers, making bathroom renovations a smart investment.

Average Costs & ROI

Minor Bathroom Remodel (Replacing fixtures, new vanity, updated lighting, fresh paint)

• Cost: $10,000–$15,000
• ROI: 85%–95%

Major Bathroom Remodel (Full renovation with new layout, high-end materials, luxury features)

• Cost: $25,000–$40,000
• ROI: 55%–70%

Why Bathrooms Deliver Strong ROI

• Affordability – Bathroom remodels often cost less than kitchen renovations while still offering strong ROI.
• High buyer expectations – Buyers prioritize modern, well-maintained bathrooms.
• Energy efficiency appeal – Water-saving fixtures and eco-friendly upgrades attract environmentally conscious buyers.

Kitchen vs. Bathroom: Which One Is the Better Investment?

While both kitchen and bathroom remodels can boost home value, choosing between the two depends on several factors:

• Budget Considerations – If funds are limited, a bathroom remodel typically provides a higher ROI at a lower cost than a full kitchen overhaul.
• Market Demand – In competitive markets, buyers may expect a move-in-ready kitchen, making kitchen renovations a more valuable investment.
• Existing Home Condition – If one of the spaces is significantly outdated or dysfunctional, prioritize that renovation first.

Case Study: A Real Estate Perspective

A recent report from real estate experts found that home listings with updated kitchens sold 10% faster than those without. In contrast, properties with modernized bathrooms saw a higher percentage of their renovation costs recouped during resale.

One example is a mid-range home in a growing suburban market where a homeowner invested $25,000 in a minor kitchen remodel and saw an estimated $19,000 return upon selling. Meanwhile, another homeowner in the same area spent $12,000 on a bathroom remodel and gained $11,400 back—a nearly 95% return on investment.

This reinforces that while kitchens attract buyers, bathrooms often yield a stronger ROI in terms of percentage recouped.

Making the Right Remodeling Decision

If maximizing resale value is the top priority, a bathroom remodel often delivers a higher percentage of investment return due to its lower cost. However, if the goal is to increase overall home appeal and attract buyers faster, a kitchen remodel can provide a significant competitive edge in the market.

For homeowners looking to make the best decision based on their unique property and goals, Foxwood Company offers expert guidance from experienced contractors specializing in high-quality kitchen and bathroom remodels. Contact us today to discuss the best remodeling services for your home!