Your bathroom is the one room of your home that keeps on giving. 24-7 standing ready to help you look good and feel fine as you slowly and sleepily prepare to seize the day. It waits patiently for you the rest of the day until you come back to unwind with a soak or a hot shower. So what is a bathroom remodel average return on investment?
Read on to find out!
Bathroom Remodel Categories and Definitions
As compiled in the Remodeling 2023 Cost vs. Value Report (www.costvsvalue.com), Bathroom remodels fall into three categories:
- Minor Bathroom Remodel
- Midrange; Major Bathroom Remodel
- Midrange; and Major Bathroom Remodel, Upscale.
Let’s start with a common definition of each category. Your project specification may vary.
Bathroom Remodel, Midrange1
Update existing 5×7-foot bathroom:
- Replace all fixtures to include 30×60-inch porcelain-on-steel tub with 4×4-inch ceramic tile surround
- New single-lever temperature and pressure-balanced shower control
- Standard white toilet
- Solid-surface vanity counter with integral sink
- Recessed medicine cabinet with light
- Ceramic tile floor
- Painted walls, ceiling, and trim
Bathroom Remodel, Upscale1
Expand existing 35-square-foot bathroom to 100 sf within existing house footprint:
- Relocate all fixtures
- Include 42×42-inch neo-angle shower with ceramic tile walls with accent strip
- Recessed shower caddy, body-spray fixtures, and frameless glass enclosure
- Include freestanding soaker tub with high-end faucets
- Stone countertop with two sinks
- Two mirrored medicine cabinets with lighting
- Compartmentalized toilet area with one-piece toilet
- Humidistat-controlled exhaust fan
- Use all color fixtures
- Use larger matching ceramic tiles on the floor, laid on diagonal with ceramic tile base molding
- Add general and spot lighting including waterproof shower fixture
- Cabinetry has custom drawer base, wall cabinets
- Extend HVAC
- Electric in-floor heating
Bathroom Remodel, Universal Design1
Update existing 5×7-foot space to be wheelchair-accessible (zero threshold, 36-inch-wide door):
- Install flat-panel electrical switches at sitting level (36 to 42 inches above floor)
- Replace toilet with comfort height fixture featuring elongated bowl and bidet type seat
- Remove existing bathtub and install curbless, tiled, walk-in shower with adjustable showerhead, fold-out seat, thermostatic mixing valve, and bi-directional glass door
- Replace flooring with electric radiant heat beneath new luxury vinyl tile flooring
- Install adaptive living vanity with easy-grasp handles and adjustable mirror
- Install LED lights, infrared ceiling light, night light, and ultra-quiet vent fan with humidity-sensing controls
- Install ceramic tiles on walls with two contrasting color stripes
- Install nine towel bars that can support 250 pounds
- Reconfigure storage to be accessible from a seated position.
National Bathroom Remodel Average ROI
Bathroom Remodel, Midrange1
Job Cost: $24,606
Resale Value: $16,413
Cost Recouped: 66.7%
Bathroom Remodel, Upscale1
Job Cost: $76,827
Resale Value: $28,203
Cost Recouped: 36.7%
Bathroom Remodel, Universal Design1
Job Cost: $39,710
Resale Value: $18,270
Cost Recouped: 46.0%
Takeaway
Small, midrange bathroom remodels are the only category that has increased in ROI this year. Rising loan interest rates and housing cost inflation mean smaller investments in your home will yield the best returns.
Bathroom remodel return on investment is less linear than kitchens because bathrooms tend to be even more personal than kitchens. Lower-cost bathrooms tend to have a more basic design and less enthusiastic color and fixture choices. It may tend to appeal to more potential buyers. Even if it doesn’t, much less money was spent so recouping more in the sale of the home is easier.
When it comes to Universal Design bathrooms, they carry a huge advantage over ADA-compliant bathrooms. While ADA bathrooms cater to the needs of those with specific mobility and capability limitations, Universal Design bathrooms are comfortable and convenient to use by all. This is the first time since this UD bathrooms started being tracked (2017) that ROI has dipped below 50%.
Kansas City Metro Bathroom Remodel Average ROI
Bathroom Remodel, Midrange1
Job Cost: $25,102
Resale Value: $14,727
Cost Recouped: 58.7%
Bathroom Remodel, Upscale1
Job Cost: $83,186
Resale Value: $24,424
Cost Recouped: 31.3%
Bathroom Remodel, Universal Design1
Job Cost: $40,458
Resale Value: $16,627
Cost Recouped: 41.1%
Takeaway
In 2023 the national averages and the KC metro area average will continue to decline as corporate homebuyers continue to drive up the cost of homes, and bank interest rates continue to inflate.
Like kitchens, bathroom remodel average return on investment rates have dropped to a record 10-year low. Midrange remodels on 1/2 and 3/4 baths are doing better than the larger main bath and upscale remodels because of the average ceiling on local resale prices.
What can you do to confidently remodel your bathroom without losing value in your investment?
Continue to live in your home, and enjoy the increase in your quality of life! Avoid the temptation to throw good money at bad money by investing in large, upscale remodels just prior to sale. Enjoy your bathroom remodel for another 5 or more years, and when the market corrects you’ll be sitting on a huge pile of value.
Bathroom remodels always have been, and will always be, one of the smartest things a homeowner can invest in to increase the value of their home!
Want to increase the value of your home? Find out what your bathroom remodel return on investment could be.
Contact John at 913-214-6211, or submit your request at MortiseAndMiter.com today!
Sources
- Remodeling 2023 Cost vs. Value Report. © 2023 Hanley Wood, LLC. Complete data from the Remodeling 2023 Cost vs. Value Report can be downloaded free at www.costvsvalue.com.