Does a Kitchen Renovation Increase Home Value?

The kitchen is the heart of the home. When it’s well designed it can elevate the entire look and feel of a property, both in terms of appearance and in terms of functionality. And when it’s not, it can make an entire home feel dated and inefficient—which can be a big problem if you’re thinking of selling. Because it plays such an important role, many homeowners look to the kitchen first when making home improvements. But does a kitchen renovation increase home value enough to justify its expense?

A kitchen renovation is the third most popular type of home improvement, according to the National Association of Realtor’s (NAR) 2019 Remodeling Impact Report, with general kitchen upgrades coming in at number two. According to Remodeling magazine’s 2020 Cost vs. Value report however, the return on investment for all types of kitchen renovations—including mid-range and upscale remodels—is going down. So what gives? Below, we’ll go over what you need to know in answer to the question does a kitchen renovation increase home value?, including how you can make the most of your remodeling investment.

Does a Kitchen Renovation Increase Home Value?

In a word: yes. Most realtors will tell you that kitchens sell houses, but increasing home value and getting a big return on your spend aren’t the same thing. As you make a home renovation budget and determine which efforts are worth the cost, you’ll need to evaluate whether the expense of a major kitchen remodel is efficiently offset by the increase in home value that if affords.

Turning back to Remodeling magazine’s Cost vs. Value report, here’s how various degrees of a kitchen renovation increase home value:

Minor Kitchen Remodel – Midrange

Average cost: $23,452
Average resale value: $18,206
Recouped expenses: 77.6%

Major Kitchen Remodel – Midrange

Average cost: $68,490
Average resale value: $40,127
Recouped expenses: 58.6%

Major Kitchen Remodel – Upscale

Average cost: $135,547
Average resale value: $72,993
Recouped expenses: 53.9%

Data was not provided for midrange major kitchen remodels.

You’re rarely—if ever—going to get a 100% return on a home improvement investment. For that reason, it’s important to do a careful cost benefit analysis and determine whether it’s worth spending tens of thousands of dollars (the average cost of all kitchen renovations is $25,093, or $150 a square foot, according to HomeAdvisor) to increase your home’s value.

Key to keep in mind here is that just as a stunning, updated kitchen can sell a home, an outdated kitchen can stand in the way of a sale. So even if you can’t do a complete kitchen renovation, you’ll still have something to gain from making targeted improvements (more on those later).

What About the Joy Score?

We often think about value of a home renovation project in terms of dollars and cents, but you can’t discount the joy score, which is the innate satisfaction or enjoyment that a homeowner gets out of having a more aesthetically pleasing, more functional space. And on a scale of one to 10, the NAR reports that the joy score of a kitchen renovation is a solid 10, both for the homeowners who hire a professional to do their remodel and for those who undertake the project on their own.

What this tells us is that there is more to be gained from a kitchen renovation than just an increase in a home’s asking price. If you’re thinking of taking the leap, it can help to know that for most home renovators a kitchen upgrade is far from regrettable.

5 Kitchen Updates That Add a Lot of Value

For many homeowners, a $20,000+ renovation cost isn’t quite in the budget. For that reason, it can often be a good idea to break up a renovation into its component parts and pick and choose the upgrades that make the most sense for your wallet and for your objectives. These five kitchen updates will increase your home’s value without requiring a major renovation, and are a good place to start if you want to stretch your dollar as far as it will go.

Repainting Cabinets and Adding in New Hardware

Swap Out Your Counter Tops

Update Your Appliances

Put In New Light Fixtures

Add in a New Kitchen Sink

Is a Kitchen Renovation Worth It?

That’s up to you! A kitchen renovation will increase your home value, even if you don’t totally recoup your costs. You’ll also get a high joy score out of the project. If having a kitchen that you enjoy being in matters to you, then go for it.

As for finding a professional to do the job, use our tips on how to find a handyman, plumber, or other service provider so that you can be sure to select the right person for the job. Do plenty of research before selecting someone, since going the cheap route or working with someone who isn’t completely familiar with what they’re doing will almost certainly end up costing you more in the long run.