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What is the ROI on Remodeling a Bathroom?

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what is the RIO on remodeling a bathroom

Every homeowner has the same question: what renovations will bring the greatest return on investment? Without a doubt, one of the renovation projects with the biggest bang for your buck is a bathroom remodel. Remember, bathrooms weren’t always the spa destination that homeowners expect now, nor did homebuilders consider accessibility until recent years. If you have an older home, it can be cramped, awkwardly arranged, and located in an unfortunate spot.

Ensuites were an unheard-of luxury at one time, too. Now, it’s expected, and some newer homes even have bathrooms attached to every bedroom. The bath remodels ROI, while significant monetarily, can also provide returns on functionality and enjoyment of your home. Suppose you’ve invested in an older home or even inherited the family home to maintain the value and bring the functionality into the 21st century. In that case, you need to consider a bath remodel. 

What Kind of Bathroom Remodeling ROI Can I Expect?

While you can expect significant ROI on bathroom renovations, it can vary according to Zillow. They quote some numbers based on the type of renovation effort and the level of finishes from Remodeling magazine’s Cost vs. Value Report. Here are the categories of remodels cited:

  • Standard – Significant changes are requiring replacement of some items, not just aesthetics like lighting and paint.
  • Midrange – Nice but not luxury finishes, like new tile surrounds and floors, chrome fixtures, solid surface counter, standard toilet, and single-lever shower handle. 
  • Upscale – Think luxury, like heated floors, stone countertops, double sinks, expanded or optimized layout, top-of-the-line lighting and fixtures, rain showerheads, roll-in showers, and freestanding soaker tubs.
  • Universal design – With the focus on accessibility and the growing popularity of aging in place homes, universal design is becoming more commonplace and desirable. It can include wider doorways and more room between fixtures, lower vanities with room for a wheelchair, roll-in shower access, a taller toilet, shower seating, and more. 
  • Addition – Adding a new bathroom can significantly add value to your home, particularly when the bedroom to bathroom ratio is significantly off.

The following ROI numbers are based on national averages. 

Standard Bathroom Remodel

According to Cornerstone Home Lending, with an average spend for a standard remodel of between $15,730 and $18,546, you can expect a return on investment of anywhere from 64.8% to 68.4%.

Midrange Remodel

The national average bath remodel ROI is 70.1%. That’s based on an average cost of $19,134, with an average return of $13,422.

Upscale Remodel

With an average cost of $61,662, the average return for an upscale bathroom remodel comes in at $34,644, or 56.2%.

Universal Bathroom Design

The average ROI on a universal design renovation for a bathroom is an impressive 70.6%, based on a cost of $16,393 and a return of $11,581.

Bathroom Addition

Just like bathroom renovations vary by size and finish, so do the additions. The ROI you can expect from a midrange addition could be up to almost 60%, while the upscale addition comes in at almost 55%.

Areas That Give the Most Bathroom Remodeling ROI

While it is tempting to start from scratch to create the bathroom of your dreams, it is not always economically feasible. The good news is that when you consider that the average overall for a bathroom remodel is 70%, you should see a significant return on investment with any professional bathroom renovation. Your bathroom renovation doesn’t have to be a major one to provide significant ROI. If you want to concentrate on what will generate the highest return, consider the following upgrades.

Upgrade Backsplash and Floors

Some of the most neglected areas in an older bathroom are the backsplash and floors. Old fashioned, ugly, or broken tiles with stained or missing grout is a real turnoff to buyers and residents alike. If you want to impress, you have a wide variety of options, like mosaic tiles, glass tiles, subway tiles, and more. You can choose to go retro with penny tile or use inlaid patterns for a custom look. Just be careful not to get too taste specific, or it may work against you by dating the room or eliminating buyers looking for a more classic aesthetic. 

Replace Bathroom Countertops

There was a time when tiled counters were all the rage in bathrooms. Obviously, those days are over. Slab countertops are what most home buyers are looking for in kitchens and bathrooms. They are not only beautiful, but they are also durable and easy to maintain, giving any room an instant high-end facelift. The choices are almost endless, with quartz, porcelain, natural stone, and engineered slabs that look just like natural stone but without the cost or sealing maintenance of natural surfaces.

Incorporate Universal Design 

As already disclosed, universal design is becoming not only more common but more requested by older homeowners. Accessibility can be a more impactful selling point than high-end finishes. It allows your home to be marketable to people of all abilities, and the prospective homeowner can feel confident that they won’t have expensive renovations in their future to allow them to age in place. 

Tips to Decrease Costs and Increase Your Bath Remodel ROI

One of the easiest ways to increase ROI is to decrease expenses. Of course, this doesn’t mean skimping on proper installations, cut-rate fixtures, or safety. However, when you are trying to stay within a budget, you can prioritize the work to optimize your return. 

If It Is Broken, Fix It First

This is the other side of the adage. If it isn’t working, your guests and potential buyers will definitely notice. Not only that, but everything that needs work will show up on any inspection report. If you’ve ever bought or sold a home, you know the panic that a long list of even minor repairs on an inspection report can cause in a potential buyer. Some of the most common areas to repair or replace include:

  • Cracked or broken tiles
  • Cracked, chipped, or broken sinks, shower surrounds, tubs or toilets
  • Faded, outdated, or bad paint jobs
  • Peeling, moldy, or mildewed caulk
  • Dirty, missing, stained, or mildewed grout
  • Broken fixtures
  • Damaged, scratched, or water-stained shower doors
  • Outdated or broken lighting

Pay attention to the natural light and ventilation in the bathroom. Make sure your exhaust fan is quiet and functional. If you don’t have a window, try finding money in the budget to add one. 

Prioritize Layout

A cramped or dysfunctional layout is a real turnoff to prospective homebuyers. A toilet placed inches from the doorway or right against a bathtub, a cabinet door that blocks the shower, or a cabinet where you can hit your head when leaning over should all be on the top of your “must go” list. If you can, install a water closet so your toilet is separated from the rest of the bathroom.

Hire a Respected Professional Bathroom Remodeler

To get the best ROI for your bathroom remodel, choose USA Bath. Satisfied homeowners throughout Northern California and Northern Nevada can attest to the high-quality products, reasonable prices, and professional installation process we provide. Contact us today for more information.

Featured Image: Andy Dean Photography / Shutterstock