What to Anticipate for Your Bathroom Remodel ROI

What is the Typical Bathroom Remodel ROI?

Undertaking a bathroom remodel can be an excellent way to introduce a touch of luxury into your home or prepare it for sale. Irrespective of your goals or financial circumstances, every homeowner shares a common objective: maximizing the return on investment (ROI) for their bathroom remodel.

While a 100% ROI isn’t typically achievable for bathroom renovations, this room offers one of the highest ROI rates in your home.

Here’s what you can anticipate when considering a bathroom remodel:

Naturally, each project is unique, so the ROI can vary. On average, a mid-range bathroom remodel yields a 70% ROI, while an upscale remodel returns around 60%.

The extent of your remodeling efforts influences your ROI: more extensive work generally results in a higher ROI, while less ambitious projects yield lower returns. However, it’s important to remember that a full bathroom remodel might not always be cost-effective, but in certain cases, it can be a wise investment.


Types of Bathroom Remodels and Their ROI

Homeowners have several options for improving their bathrooms, but the following are the most common:


  1. Cosmetic Bathroom Remodels:

Cosmetic bathroom remodels typically yield the highest ROI. These projects can transform a mundane bathroom into a luxurious space without a substantial financial outlay. You can enhance the bathroom’s appearance by:

  • Upgrading faucets
  • Replacing shower tiles
  • Installing new flooring
  • Repainting the walls
  • Changing light fixtures
  • Replacing countertops
  • Painting the cabinets
  • Upgrading cabinet hardware


  1. Floor Plan Remodel:

When your current bathroom’s floor plan isn’t functional, a complete remodel might be necessary. This allows for a complete relocation of the shower, sink, and toilet or relocating only one element. These projects are more involved since plumbing and electrical systems may need adjustment to meet city codes. When determining the right floor plan, consider factors like the bathroom’s usage, the number of occupants, and your functionality goals.


  1. Bathroom Additions:

If your family has grown or your current facilities no longer suffice, adding a bathroom is a viable option. This is akin to a floor plan remodel, but the new room is constructed from scratch. Plumbing and electrical systems may not need relocation, but additional installation work is necessary to ensure bathroom functionality.


  1. Creating an Accessible Bathroom:

For those aging in place, or for elderly parents, bathroom remodeling might be essential to enhance safety. This can involve adding shower seats and toilet handrails or reconfiguring the bathroom floor plan to improve accessibility, especially if a wheelchair or walker is required by anyone in the household.


3 Ways to Increase a Bathroom Remodel ROI

When investing in your home, it’s essential to maximize your returns, considering it as an investment rather than a permanent residence. Eventually, you may intend to sell your home and aim for the highest possible return on investment (ROI). Here are some strategies to boost your bathroom remodel ROI:


  1. Address Immediate Repairs:

Start by addressing areas that require immediate attention. Fix issues such as leaky pipes, malfunctioning faucets, or poor lighting. Subsequently, focus on shower and tub cleaning, re-grouting or re-tiling, and enhancing the bathroom’s overall functionality and aesthetics.

A useful rule of thumb is to prioritize areas that wouldn’t pass an inspection and might deter potential buyers, as these offer the greatest ROI.


  1. Material Selection:

Carefully choose materials for the bathroom that are durable and visually appealing. Don’t automatically assume that pricier materials will guarantee a better ROI, as this is not always the case. For instance, you can find laminate flooring and countertops that closely mimic higher-end materials at a fraction of the cost, offering a substantially higher ROI. Prioritize splurging on novelty items you genuinely desire, while opting for quality, long-lasting materials in other areas to reduce costs.


  1. Optimize the Layout:

Ensure that your bathroom’s layout is user-friendly and spacious, especially if it feels cramped or needs a change. Evaluate factors like door and cabinet drawer accessibility and the placement of outlets. Allocate part of your budget for proper ventilation. A bathroom with a well-designed layout and more space will yield a significantly higher ROI than a cluttered bathroom with expensive materials. While bathrooms prioritize functionality over style, achieving both is the ultimate goal.


  1. Consider DIY Projects:

You don’t need to outsource all the bathroom remodel work. Identify tasks you can handle yourself to save on labor costs. Tasks like replacing hardware or swapping out faucets are relatively simple. Determine what you can manage independently to reduce labor expenses, ultimately leading to a greater ROI.


The Benefits of a Bathroom Remodel

No matter your bathroom remodel ROI, there are many benefits of remodeling a bathroom, including the following:


Enhanced Safety

If your bathroom is older, it might not be up to code and could potentially have hazards. Remodeling your bathroom can remove mold and mildew, improve the flooring, take care of leaky faucets, and reduce the risk of slipping.

Today’s technology has greatly advanced from prior years, and remodeling your bathroom will not only enhance its appearance but ensures everyone’s safety too.


Save Money

It sounds crazy that you could save money by spending money, but it’s true. Installing energy-efficient toilets or water heaters can reduce the use of your home’s utilities, saving you money on your bills and increasing your home’s value. In addition, buyers love energy-efficient appliances, so the more you have in place, the more attractive your home will become.


Creating a Space for Relaxation

Although it may not be the first place that comes to mind for relaxation, your bathroom often serves as your initial destination upon returning home or preparing for bedtime. It’s a space where you unwind from the day’s demands. When your bathroom boasts a modern and visually pleasing design, it enhances your capacity to relax, facilitating better sleep. This is particularly true when you incorporate elements of luxury throughout the room.


Enhancing Functionality

A bathroom that feels less functional can benefit significantly from remodeling. Whether you opt to increase its spaciousness or augment its storage capacity, a more functional bathroom not only serves the household better but also enhances your home’s resale value.


Increasing Home Value

Even minor renovations can positively impact your home’s value. Simple upgrades such as a fresh coat of paint, a new faucet, or a contemporary backsplash can work wonders in terms of boosting your home’s value. For more extensive projects, like installing a new shower or tub, replacing the flooring, and upgrading the lighting fixtures, the return on your investment becomes even more substantial.




Which Bathroom Remodel ROI is the Highest?

You’ll typically see the highest bathroom remodel ROI on midrange standard bathroom remodels. This is usually a cosmetic remodel but with standard-grade materials such as ceramic floor or tile, chrome faucets, and standard light fixtures. 

Buying average fixtures and remodeling the bathroom to make it modern and functional usually has an ROI of around 70%.

Making accessible bathroom changes also has an ROI of around 70%. These changes may include widening the doorway, making the toilet and shower wheelchair-accessible, and adding support bars throughout the bathroom.

As you get more upscale or do a floor plan remodel, the ROI decreases, but it’s still attractive. For example, you might add higher-end faucets or lighting, add double sinks, or install luxurious countertops. If you do a floor plan remodel, you might completely change the bathroom’s layout or add a bathroom to your home.

The ROI on a more upscale remodel is closer to 55% – 56%.  


How Much Can a Bathroom Remodel Increase Home Value?

No matter the bathroom remodel ROI, everyone wants to know how much a bathroom remodel increases the home value.

Typically, a bathroom remodel increases a home’s value by 3%. So a home that’s worth $600,000 will be worth $618,000. 


Final Thoughts

Your bathroom remodel ROI can be as great or small as the effort you put into it. Don’t assume you need all high-end materials or have to renovate from top to bottom.

Instead, prioritize the work you do and where you spend your money. Focus on functionality, then on luxury. You’ll get more bang for your buck when you make the room as functional as possible while keeping in mind today’s trends. Don’t get too caught up in trends though – make your changes timeless so they last for years to come, and be sure to choose materials that will stand the test of time.

With the proper steps, you can have a 70%+ ROI on your bathroom remodel and enjoy a higher home value when you sell your home. The bathroom is one of the best places to focus your remodeling efforts and can be an area that pays off the most.