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Bathroom Remodeling in 2023: Increasing Home Values and Return on Investment (ROI)

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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 2022 can increase a home’s value by as much as 53%-58% of what is spent on the renovation. Some remodels might even recoup up to 71% of your costs upon resale.

Quite simply, a bathroom remodel won’t necessarily recoup at resale everything you spent to update it, 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 20%.

The catch is that every little decision you make (from gutting the tub to the marble pattern of your tile) can have a significant impact on your return.

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.

In 2020, the average bathroom remodel cost $13,400 and ranked first in 2021’s most planned remodeling projects for homeowners according to HomeAdvisor’s “True Cost Report.” However, this number may vary due to pandemic-induced material shortages, supply chain issues, and location.

Remodeling’s 2022 “Cost vs. Value Report” shows that a mid-range bathroom remodel generally costs about $27,164, and an upscale remodel costs about $82,8822.

Keep in mind smaller bathrooms will naturally tend to cost less to remodel than larger ones.

Recouping your bathroom remodel expenses

According to Remodeling’s “Cost vs. Value” 2022 report, a bathroom remodel can recoup around 53% to 58% 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 the National Association of Realtors® 2022 “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.


According to USA Bath, 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. Updating the vanity will generally include the countertops, faucet, and sink, which can eat up budget.

Most homebuyers are looking for vanities that hit a comfortable height and have granite countertops, so pay close attention to your material costs.


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.


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.” 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.