What is a Kitchen Remodel Average Return on Investment? [2022]

The second most tangible value of a kitchen remodel, just after its new beauty and functionality, is its return on investment. At sale, a kitchen remodel average return on investment can vary according to kitchen size, scope and complexity of the remodel, and the geographical location of the home. What do they all have in common? An incredible, if not the best, return on investment for your home!

Kitchen Remodel Categories and Definitions

As compiled in the Remodeling 2022 Cost vs. Value Report (www.costvsvalue.com), Kitchen remodels fall into three categories: Minor Kitchen Remodel, Midrange; Major Kitchen Remodel, Midrange; and Major Kitchen Remodel, Upscale.

Let’s start with a common definition of each category.

Minor Kitchen Remodel, Midrange1

small budget kitchen

Functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace doors and drawer fronts, including new hardware. Replace cooktop/oven range and slide-in refrigerator with new energy-efficient models. Replace laminate countertops; install mid-priced sink and faucet. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

Major Kitchen Remodel, Midrange1

midrange kitchen remodel

Update outdated 200-square-foot kitchen with functional layout of 30 linear feet of semi-custom wood cabinets, including 3×5-foot island; laminate countertops; and standard double-tub stainless steel sink with standard single-lever faucet. Include energy efficient range, vented range hood, built-in microwave, dishwasher, garbage disposal, and custom lighting. Add new resilient flooring. Finish with painted walls, trim, and ceiling.

Major Kitchen Remodel, Upscale1

luxury kitchen

Update outdated 200-square-foot kitchen with 30 linear feet of top-of-the-line custom white cabinets with built-in sliding shelves and other interior accessories. Include stone countertops with imported ceramic- or glass-tile backsplash; built-in refrigerator, commercial-grade cooktop and vent hood, wall oven, and built-in microwave unit. Install high-end undermount sink with designer faucets and water filtration system. Add new general and task lighting, including low-voltage undercabinet lights. Install tile or similar flooring that looks like wood.

National Kitchen Remodel Average ROI

Minor Kitchen Remodel, Midrange1

Job Cost: $28,279

Resale Value: $20,125

Cost Recouped: 71.2%

Major Kitchen Remodel, Midrange1

Job Cost: $80,809

Resale Value: $45,370

Cost Recouped: 56.1%

Major Kitchen Remodel, Upscale1

Job Cost: $158,015

Resale Value: $83,025

Cost Recouped: 52.5%

Takeaway

As the scope and cost of kitchen remodels increased significantly on a national average, the cost recouped dropped again as a percentage. Increases in the cost of construction materials and shortages in transportation assets directly contribute to the higher construction costs. This is also explained in part by the actual cost of the remodel compared to the whole-home value, and in part because higher-cost custom kitchens tend to be tailored specifically to the owner. These kitchens can be harder to move because the taste in design and specs are sometimes too specific.

Kansas City Metro Kitchen Remodel Average ROI

Minor Kitchen Remodel, Midrange1

Job Cost: $27,212

Resale Value: $18,518

Cost Recouped: 68.1%

Major Kitchen Remodel, Midrange1

Job Cost: $78,227

Resale Value: $41,045

Cost Recouped: 52.5%

Major Kitchen Remodel, Upscale1

Job Cost: $152,500

Resale Value: $79,291

Cost Recouped: 52.5%

Takeaway

Costal trends in residential design and popularity typically take about three years to reach the Midwest. The averages for Overland Park are so close to the national average because, in a way, we are the average. Johnson County is expanding at a rapid rate with people from all over the country, and along with that comes an inevitable increase in the cost of housing, but also a clear increase of sale price and competition.

Summary

Kitchen remodels always have been, and will always be, one of the smartest things a homeowner can invest in to increase value in their home.

As material costs and labor rates have increased steadily over the last 20 years, Kitchen Remodel Average Return on Investment has slowly, but steadily decreased. But can you name anything else that potentially nets a 50%-70% return? Can you think of anything else that holds its value quite as well?

Contact Mortise & Miter today to find out how great your return on your kitchen investment could be!

Source

[1] Remodeling 2022 Cost vs. Value Report. © 2022 Hanley Wood, LLC. Complete data from the Remodeling 2022 Cost vs. Value Report can be downloaded free at www.costvsvalue.com

Related Articles

Bathroom Remodel Average Return on Investment