How Much Does a Bathroom Remodel Increase Home Value?
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- 9 min read
- Elizabeth Preston, Contributing AuthorCloseElizabeth Preston Contributing Author
Elizabeth Preston is a freelance writer with a background in economics and psychology as well as a doctorate of philosophy in English from the University of Nevada, Reno.
- Jedda Fernandez, Associate Refresh EditorCloseJedda Fernandez Associate Refresh Editor
Jedda Fernandez is an associate refresh editor for HomeLight's Resource Centers with more than five years of editorial experience in the real estate industry.
Bathrooms are deal breakers (or makers) in a home sale, and buyers will place a hard minimum on their number of desired baths. But how does a bathroom remodel increase home value? A bathroom remodel in 2024 can increase a home’s value by as much as 73.7% of what is spent on the renovation.
Quite simply, a bathroom remodel won’t necessarily recoup everything you spent to update it at resale, but it is one of the higher-return projects that you can do. Anecdotally, a brand new bathroom also helps inspire offers on your house, and updates to this space could help you add 10%-40% more value to your home, with the average added value being 72.7%.
The catch is that every little decision you make (from gutting the tub to choosing the marble pattern of your tile) can significantly impact your return. We looked to top real estate pros and experienced contractors for their best advice on how to tackle a bathroom remodel with an eye on the return on investment (ROI).
The average cost of a bathroom remodel
How much your bathroom remodel costs will be based on a few different elements: labor costs, the materials and timeframe, and the extent of the renovation.
Aaron Glenn, owner of the highly-rated interior remodeling firm Total Home Improvement in Grayslake, Illinois, has done bathroom remodels ranging from $12,000 for minor upgrades to upscale remodels for $90,000.
The 2024 Cost vs. Value Report shows that a mid-range bathroom remodel generally costs about $25,251, and an upscale remodel costs about $78,840.
Keep in mind, though, that there are cheaper options to upgrade your bathroom, including painting the walls, updating fixtures, adding crown molding, installing posh shelving, and recaulking the bathtub and tiles. And smaller bathrooms will naturally tend to cost less to remodel than larger ones.
Recouping your bathroom remodel expenses
According to the Cost vs. Value Report, a bathroom remodel can recoup 45.1% to 73.7% of the cost put into the project.
The biggest factors of a bathroom remodel that can increase a home’s value include updating worn-out items, modernizing fixtures, and creating a more functional space.
The bathroom remodel “joy factor”
According to one National Association of Realtors Remodeling Impact Report, 73% of homeowners wanted to be in their homes more after remodeling a bathroom, and 61% experienced an increase in enjoyment of their home after a bathroom remodeling.
A bathroom renovation earned a Joy Score of 9.6 out of 10, and a new bathroom addition ranked at 8.2. Joy Scores indicate how happy someone is with a project they’ve done in their home — the higher the number, the higher the satisfaction level. In this way, a bathroom remodel increases home value from an emotional standpoint for homeowners.
The report also estimates that bathroom renovations recoup approximately 71% of their costs in value added to the home while adding a new bathroom recoups 63% of its cost.
Top 3 bathroom projects with the best ROI
Want to remodel your bathroom but don’t have the budget to completely gut it and start fresh? These three smaller projects will get you the best return on your investment.
Vanity
According to Glenn, this is one of the best projects to do for the biggest return regarding a bathroom remodel increasing home value. But it may be a bit more expensive than the others. He says that updating the vanity will generally include the countertops, faucet, and sink, which can eat up a lot of your budget.
Most homebuyers are looking for vanities that hit a comfortable height and have granite countertops, so pay close attention to your material costs. Further, bathroom renovations that allow partners to get ready simultaneously, particularly double-sink vanities, were on many homeowners’ “to-renovate” lists, especially if the couple is now staying home more often to work remotely. HomeLight’s Top Agent Insights for End of Year 2024 also reports that 94% of agents believe modernized bathrooms or kitchens make the home more appealing to buyers.
Flooring
Replacing the flooring will go the farthest in giving your bathroom a new overall appearance. Inexpensive porcelain or ceramic tiles, or even vinyl, can be engineered to look like classic wood or stone but are still completely waterproof and durable to any level of moisture. For less than $150 per 6 feet of mat, you can also install radiant-heat mats underneath your bathroom flooring of choice, which can be an attractive feature for buyers in colder climates.
Tub/Shower
Particularly with a main bathroom, the current trend is to pull out the bathtub and install a larger walk-in shower. Door-less showers are in vogue, as are “statement showers.” Soaking tubs are still a valuable option if there’s space, but whirlpool jet bathtubs are on the decline and may not help a bathroom remodel increase home value. Glenn explains that the reasoning behind removing the tub is that homeowners only use it a few times a year as opposed to using the shower every day. Still, definitely don’t remove all the tubs from the house.
How to keep costs low during your remodel
Find the right materials for your bathroom remodel
Your bathroom costs will vary based on the materials you use, the type of products being installed, and the required labor for any installation. A steam shower and heated tile floor, for example, will be substantially more expensive on both fronts than a standard walk-in shower and laminate floors.
“The cost of materials will vary whether you’re going with an expensive European brand or a generic American brand,” Glenn adds. “There are different materials, too. Luxury tiles or flooring can be much more expensive to install than a laminate floor, but it’s going to give you almost the same look. Different products can be installed that can give you a phenomenal look at a much lower cost. Shop around. Don’t go with the super cheap stuff, but keep the cost down by going with cheaper, reliable brands.”
DIY the design rather than pay upfront fees
To save on costs, it’ll help to go into the remodel process knowing exactly what you want. DIY bathroom remodeling appeals to homeowners looking to save on labor costs, which can make up 40-60% of a renovation budget.
Some contractors charge a fee to design the bathroom for you, but if you go the more DIY route and pick out materials yourself, then you could save a bundle. Simple projects like painting, updating fixtures, or installing a new vanity can be manageable for those with basic skills.
For colors, stick to 1) a warm, timeless white, 2) a natural, calming gray, or 3) something with a soft pop of color for the best resale value.
If the bathroom is in relatively good shape, then consider DIY-ing some of these tasks:
- Changing out faucets and fixtures
- Repainting any vinyl floors
- Repainting the walls
- Removing/replacing glass shower doors
- Replacing the toilet
- Brightening the grout
- Freshening up the caulk
- Adding a peel-and-stick backsplash
- Replacing any water-damaged baseboards
The key is that the bathroom should be clean, tidy, updated when applicable, and feel like a spa oasis.
However, more complex tasks, such as plumbing, electrical work, or tiling, require expertise — mistakes in these areas can be costly and even decrease home value.
Hire the best contractor for the job
Certain tasks of a bathroom remodel are likely best left to the pros, including electrical work, waterproofing, and structural changes. Hiring a contractor ensures that work is done to code, completed efficiently, and often comes with warranties. Professional remodels tend to have a higher upfront cost but can deliver a better ROI due to the higher quality of materials, craftsmanship, and buyer appeal when selling the home.
Glenn notes that one of the most effective cost-saving measures is to vet potential contractors. Don’t pick one out of a hat and go with them for no real reason.
This is especially important in light of the reality that contract work is only getting more expensive.
“Reach out to a couple people to get a better understanding of different companies, what they can offer, and how they work,” he said. “When looking at an individual contractor or company, take a look at the knowledge and expertise of that company. Take a look at what the company can offer. It’s not always the same.”
Make use of sites like Angi and Houzz to check out contractors’ reputations and reviews. It’s an easy process.
For Houzz, navigate to the “Kitchen & Bathroom Remodelers” section of the “Find Professionals” dropdown. The site should recognize your location and give you a list of nearby companies.
You can expand your search to other areas, too. Each one will have a star rating, reviews, and photos of past projects for you to peruse. You can contact them straight from the website.
To navigate Angi, type in your search, and then you’ll go through a list of questions to determine your location, the changes you want, where you are in the process, the desired completion timing, funding, and more details about the building.
At the end of the questions, you can either have a matched list emailed to you or browse a directory. You’ll instantly see a list of Angie-certified contractors.
Click on one, and you’ll be taken to a profile with contact information, services offered, and reviews.
Finally, make sure to stay organized with all of your appraisals. When you choose your contractors, be sure to keep track of all contracts, warranties, invoices, and total money spent.
DIY vs. professional remodeling: A quick comparison
A bathroom remodel can significantly increase your home’s value, but the approach you take — DIY (Do It Yourself) vs. hiring a professional — can impact the final return on investment (ROI). While a DIY remodel can save money, it also carries risks that could reduce home value if not executed properly.
Let’s take a look at a quick comparison:
Factor | DIY Remodeling | Professional Remodeling |
Cost | Lower, mainly material costs | Higher, includes labor and materials |
Time | Can take weeks/months, depending on skill level | Completed faster due to expertise |
Quality | May lack professional finish | High-quality craftsmanship |
Skill Level Needed | Moderate to high, depending on tasks | Minimal homeowner effort required |
Permits & Code Compliance | Risk of missing permit requirements | Ensured compliance with local building codes |
Risks | Potential costly mistakes, safety hazards | Higher cost, but fewer risks |
ROI Impact | Can lower ROI if poorly executed | Higher ROI due to quality and marketability |
How to make every dollar of your bathroom remodel count
All in all, although you’re not guaranteed to get back every penny you spend on a bathroom remodel at resale, a fresh, updated bathroom will get buyers’ attention, will likely increase your home’s value, and bring joy to you while you enjoy the space as a homeowner.
Keep it simple and inexpensive rather than going crazy with the highest-end finishes, and it will be a project you won’t regret.
Minor vs. major remodel ROI
The return on investment (ROI) for a bathroom remodel varies depending on the scale of the renovation. A minor remodel typically involves cosmetic upgrades, while a major remodel often includes structural changes, plumbing/electrical work, and luxury additions.
A minor remodel focuses on refreshing the bathroom without major structural changes. Common upgrades include:
- Replacing outdated fixtures (sink, faucets, showerheads)
- Updating the vanity or countertops
- Installing new tile or refinishing existing floors
- Adding a fresh coat of paint
- Improving lighting
According to the 2024 Cost vs. Value Report, a midrange bathroom remodel recoups approximately 73.7% of its cost upon resale, making it one of the best-value home improvements.
A major remodel typically involves layout changes, high-end finishes, and extensive plumbing/electrical work. Common upgrades include:
- Expanding the bathroom footprint
- Installing a luxury soaking tub or walk-in shower
- Upgrading to heated floors or premium tiles
- Adding custom cabinetry and high-end countertops
- Enhancing smart home features (touchless faucets, digital showers)
A luxury bathroom remodel has a lower ROI (around 45%), mainly because high-end features appeal to a niche market. However, in high-value neighborhoods, luxury remodels may be expected and could enhance marketability.
Comparison: Minor vs major bathroom remodels
Remodel Type | Average Cost | Common Upgrades | ROI |
Mid-range Remodel | $25,251 | Fixtures, vanity, paint, tile refresh | 73.7% |
Major Remodel | $78,840 | New layout, luxury materials, smart features | 45.1% |
For homeowners considering a bathroom renovation, a small remodel generally provides the best return. However, for those in high-end markets or planning to stay long-term, a major remodel with premium upgrades can enhance comfort and appeal.
However, if you’re looking to sell in a few months or even a year’s time, talk to a real estate agent before you make any major improvements. Oftentimes, it’s better to save your money by fixing minor repairs that would get flagged during a home inspection and then putting up the for-sale sign, rather than dragging out your listing with last-minute renovations.
Header Image Source: (Steven Ungermann / Unsplash)