What’s the ROI on a whole-home remodel? The answer may surprise you. Many homeowners assume that remodeling their entire home is a guaranteed way to boost property value. While that’s often true, the return on investment (ROI) can vary based on several factors including location, material choices, and the type of renovations made. In this article, we’ll break down what you can expect from a whole-home remodel and how strategic upgrades to spaces like the kitchen and bathroom can offer the best payback.
Why ROI Matters in Home Renovations
When considering a remodel, most homeowners want to know one thing: Will this increase the value of my home? ROI return on investment is the measure that helps answer that question. A high ROI means you’re likely to get more money back when you sell, compared to what you spent on the renovation.
According to the latest Cost vs. Value Report by Remodeling Magazine, whole-home renovations typically yield a return between 50% to 70%, depending on the scale and execution. However, kitchen and bathroom remodels consistently rank among the highest ROI upgrades, sometimes returning up to 80% of the project cost.
If you’re in the planning phase, start with high-impact rooms. Check out our kitchen remodeling services or see how we transform bathrooms.
Kitchen and Bath Remodels Lead the Way
In nearly every real estate market, updated kitchens and bathrooms are top priorities for buyers. A mid-range kitchen remodel, for instance, can deliver a 72% ROI. Even a minor kitchen update like new cabinets, countertops, or appliances can greatly influence a buyer’s decision.
Bathrooms follow closely behind. Modernizing your bathroom with energy-efficient fixtures, fresh tile, and new lighting not only improves your daily comfort but can also provide a 60%–70% return when you sell your home.
So if you’re not ready to renovate the entire house, starting with a kitchen and bath remodel may be the smartest move.
What Affects the ROI of a Whole-Home Remodel?
While kitchen and bath renovations usually pay off, several other factors determine the overall ROI of a full home upgrade:
- Neighborhood comps: If you’re upgrading far beyond local homes, your ROI may be limited.
- Quality of materials: Higher-end finishes can attract buyers, but overspending doesn’t always guarantee better returns.
- Energy efficiency: Eco-friendly upgrades often qualify for tax incentives and reduce utility bills. That adds value over time.
- Permits and compliance: Properly permitted work protects your investment and makes resale smoother.
Want to know how to balance cost and value in your renovation? Read our guide to budget-friendly remodeling.
Can Government Incentives Improve Your ROI?
Yes… especially when your remodel includes energy-saving improvements. The Inflation Reduction Act offers tax credits and rebates for homeowners who make qualifying upgrades like:
- Energy-efficient windows and doors
- Updated HVAC systems
- Heat pump water heaters
- Insulation upgrades
These credits can lower your out-of-pocket costs and increase your home’s value. Visit EnergyStar.gov to explore what incentives are available.
By folding these upgrades into your kitchen or bathroom remodel, you not only improve function and appearance, you also maximize financial return.
Remodeling With ROI in Mind: Tips to Maximize Your Investment
Here are a few practical tips to keep your renovation ROI-friendly:
- Stick to timeless designs: Trends fade. Go for classic kitchens, flooring, and fixtures.
- Invest where it counts: Put money into kitchens, bathrooms, curb appeal, and flooring.
- Plan for longevity: Durable materials may cost more upfront but reduce long-term maintenance costs.
- Hire experienced contractors: Poor craftsmanship can hurt resale value. See why our remodels are built to last.
Final Thoughts: Is a Whole-Home Remodel Worth It?
A whole-home remodel can be well worth the cost- if done strategically. When you focus on high-ROI areas like the kitchen and bath, make energy-efficient upgrades, and follow smart design principles, you’ll not only improve how your home feels but also how much it’s worth.
Whether you’re renovating to sell or planning to stay for years to come, Award Kitchen & Bath is your trusted partner in turning ideas into value-driven results. From concept to completion, our team is here to guide you every step of the way. Schedule a consultation and let’s talk about how to get the most return out of your remodel – with quality that lasts.