In 2024, many homeowners are choosing to invest in renovations to increase the value of their properties due to historic home prices and elevated mortgage rates.
A survey by Discover Home Loans revealed that 55 percent of American homeowners prefer to renovate their current homes rather than move.
Strategic home improvements enhance living spaces and significantly increase property value. Below, we explore the top kitchen and bathroom renovations that offer the highest return on investment (ROI) this year.
1. Minor Kitchen Remodel (Midrange)
A minor kitchen remodel is one of the most cost-effective ways to enhance your home’s value. Typically costing around $27,492, this remodel focuses on updating appliances to more energy-efficient models, refacing cabinets with shaker-style panels, replacing countertops and sinks, installing new flooring, and repainting walls.
These upgrades modernize the kitchen and improve its functionality, offering an average resale value of $26,406 and recouping 96.1% of the investment. Such cosmetic changes appeal to buyers because they refresh the kitchen without the expense and disruption of major structural work.
The high return on investment makes this project a wise choice for homeowners looking to update their kitchens and increase their home’s market value.
2. Bathroom Remodel (Midrange)
A midrange bathroom remodel significantly enhances both functionality and aesthetic appeal. This renovation typically costs approximately $25,251, replacing fixtures like sinks, toilets, and bathtubs, updating flooring and tiles, and installing new lighting.
These upgrades result in an average resale value of $18,613, recouping 73.7% of the initial investment. Modernizing the bathroom improves its usability and makes it more attractive to potential buyers.
While not as high as some other projects, the ROI is substantial enough to make this a worthwhile investment. An updated bathroom can elevate the home’s overall appeal, making it a smart choice for homeowners planning to sell or refinance.
3. Cabinets
Updating kitchen cabinets can dramatically improve your kitchen’s overall look and functionality. Whether refacing existing cabinets or installing new semi-custom ones, this renovation can increase your property value by approximately 3.63%, or around $7,510.
Modern, soft-close doors and stylish hardware can give your kitchen a high-end look without the cost of a complete remodel. This improvement not only enhances the kitchen’s visual appeal but also its storage efficiency.
Potential buyers are often drawn to kitchens that look modern and are easy to maintain, making cabinet updates an intelligent investment. The relatively high ROI and the immediate improvement in kitchen aesthetics make this renovation highly beneficial.
4. Appliances
Upgrading to high-end, energy-efficient appliances can significantly enhance your kitchen’s functionality and appeal. This renovation can increase your home’s market value by about 2.35%, or $4,922.
Replacing old appliances with new stainless steel models modernizes the kitchen and improves energy efficiency, a selling point for environmentally-conscious buyers. These upgrades can transform the kitchen into a more luxurious and efficient space with minimal effort.
Given the relatively low cost compared to other significant renovations, appliance upgrades offer an excellent return on investment. They can make a substantial difference in the overall appeal of your home.
5. Counters
Installing new countertops is a renovation that can add functionality and aesthetic appeal to your kitchen. Materials like granite, quartz, or marble serve as focal points in the kitchen, increasing the home’s value by about 1.81%. New countertops enhance the kitchen’s look and provide durable, easy-to-maintain surfaces for daily use.
This upgrade can make a significant impression on potential buyers, who often view high-quality countertops as signs of a well-maintained and modern kitchen.
Investing in new countertops can yield a substantial return, making it a smart choice for homeowners looking to enhance their kitchen’s appeal.
6. Faucet and Sink
Upgrading your kitchen faucet and sink to high-end options can enhance the space’s functionality and appearance. This type of renovation can add about 1.12% to your home’s value. Installing a deep, stainless steel farmhouse sink with a modern pull-down faucet improves the kitchen’s practicality and aesthetic appeal.
These upgrades are inexpensive compared to other significant renovations but can significantly impact the kitchen’s overall look and usability. The enhanced functionality and visual appeal make this a worthwhile investment for homeowners looking to update their kitchen.
7. Lighting
Adding new lighting fixtures can significantly enhance the ambiance and functionality of your kitchen. Installing ceiling, pendant, or under-cabinet lighting can highlight key areas and improve overall visibility, increasing your home’s value by about 1%.
Good lighting can make the kitchen more inviting and spacious, appealing to potential buyers. This upgrade is relatively low-cost but can significantly affect the room’s atmosphere.
Effective lighting solutions can transform the kitchen, making it a brighter, more enjoyable space for cooking and entertaining. The positive change in ambiance and usability makes lighting upgrades an intelligent and cost-effective renovation.
8. Backsplash
Updating the kitchen backsplash is a simple yet impactful renovation that can add about 0.42% to your property value. Materials like granite, quartz, marble, or porcelain can provide a stylish and functional backdrop for your kitchen.
A well-chosen backsplash protects the walls from cooking splatters and adds a decorative element that ties the room together. This upgrade is inexpensive but can significantly enhance the kitchen’s overall look.
Homeowners can create a cohesive and attractive kitchen design that appeals to potential buyers by choosing materials that complement the countertops and cabinets.
9. Shower and Tub Surround Panels
Upgrading the bathroom’s shower and tub surround panels can enhance the space’s appearance and functionality, adding about 0.92% to your home’s value, or approximately $2,300.
Installing sleek, frameless glass shower enclosures with high-end tiles can make the bathroom look more spacious and luxurious. This renovation improves the bathroom’s aesthetic appeal, durability, and ease of maintenance.
High-quality materials and modern designs can make a significant impression on potential buyers, making this upgrade a worthwhile investment. The enhanced functionality and visual appeal make this renovation an intelligent choice for homeowners looking to improve their bathrooms.
10. Faucet, Sink, and Toilet
Replacing outdated bathroom fixtures with modern, high-end options can transform the space and add about 0.61% to your home’s value. Installing a stylish vanity with a vessel sink and a water-saving toilet can update the bathroom’s look and improve its efficiency.
These upgrades are relatively inexpensive but can significantly impact the bathroom’s overall appeal and functionality. Modern fixtures enhance the bathroom’s aesthetic and offer better performance and energy efficiency.
This combination of improved functionality and visual appeal makes fixture upgrades an intelligent investment for homeowners looking to update their bathrooms.
11. Cabinets in Bathrooms
Upgrading bathroom cabinets can add about 0.45% to your home’s value. New cabinets improve storage and update the bathroom’s appearance, making it more functional and attractive. Whether refacing old cabinets or installing new ones, this renovation can significantly enhance the bathroom’s look.
High-quality materials and modern designs can create a cohesive, stylish space appealing to potential buyers. The relatively low cost of cabinet upgrades, combined with the substantial impact on the bathroom’s functionality and aesthetics, makes this renovation worthwhile.
Improved storage solutions and an updated look make bathroom cabinet upgrades an intelligent choice for homeowners.
Wrap up
Strategic kitchen and bathroom renovations can significantly increase your home’s value and improve your quality of life. Homeowners can make smart investments that pay off by focusing on projects with high ROI, such as minor kitchen remodels, bathroom upgrades, and lighting improvements.
These improvements make homes more enjoyable to live in and increase their marketability and value when it’s time to sell or refinance. Investing in your home now can provide immediate comfort and long-term financial benefits.
