Bathrooms have always been an important space in a home, but they became a priority for homeowners during the pandemic. As people spent more time at home, they wanted a luxurious and relaxing space to unwind from life stressors, which made bathrooms a sought-after sanctuary.
But before you spend tens of thousands of dollars overhauling your bathroom, is a full-blown renovation worth your money?
Based on data from the Remodeling Magazine Cost vs. Value 2023 Report and Today's Homeowner, midrange bathroom renovations typically cost $15,000 to $25,000. Yet these renovations yield only around 60%-67% of their cost upon resale. Simply put, there is a slim chance of recouping your cost of renovating.
Before you write off a bathroom renovation completely, there are times when it may still be a smart move. The following are some ways to maximize your chances of achieving a positive return on investment.
Bathroom Renovation ROI
As a homeowner, you need to constantly weigh the costs of home projects to their future value, functionality and overall benefit. The two remodeling reports show a midrange home renovation project brings a return on investment (ROI) of around $9,500 to $16,500. Upscale bathroom renovations return even less than a midrange one.
These reports analyze the data for the average cost for home renovation projects in major U.S. markets, comparing it to the value increase of those homes after sale.
This is helpful information because it provides realistic cost and ROI expectations to guide your renovation decisions. However, it doesn't give you the complete picture.
When and Why Your Bathroom Renovation Still Makes Sense
The Bathroom has Deficiencies
One of the obvious reasons a full-blown renovation makes sense is if the bathroom is not functional and simple fixes won't suffice. "If your house is in pristine condition, but one bathroom is not just out of date but has deficiencies, then a renovation is the right thing to do as it will bring the bathroom up to the condition of the rest of the house," says Thomas McNamara.
Alex Kober, lists age as a factor. "It can also make sense to do a renovation after a lot of time has passed, say ten or fifteen-plus years, because building materials evolve," Kober says. "You can upgrade your space from a structural standpoint, to have better quality of materials helping with things like water retention."
The Space No Longer Works
Fellow Carlos Nyce adds functionality to the list. "A full renovation should be done when you have some existing conditions that don't work well with the layout anymore," Nyce says. "Maybe you are aging in place, have a new family member in the home or your kids are growing. But the space stopped working like it once did."
Buyers Expect a Renovated Bathroom
Consider what's expected of bathrooms in your immediate area. If most homes being sold have newly renovated bathrooms, buyers will expect the same from your home.
You Have the Funds to Renovate and Don't Care About ROI
A bathroom renovation may be a good choice if you have the means to do it and want to improve your own experience. A future ROI is great, but you are using the space daily. If it brings you more pleasure, enjoyment or practicality while you live there, that is money well spent.
Just ensure other areas of the home, particularly its major components like roof, windows or air conditioning, are not neglected. A bathroom has a big price tag. If you run out of funds and a major repair comes up, you might be unable to address it quickly.
