Will renovating my bathroom pay for itself?

September 15, 2023

A frequently asked question is, “what will be the ROI of a bathroom renovation?”

The return on investment (ROI) for renovating an outdated bathroom can vary widely depending on several factors, including the scope of the renovation, the quality of materials used, the local real estate market, and the overall condition of your home. Here are some considerations to keep in mind:


Scope of the Renovation:

A minor bathroom update, such as repainting, replacing fixtures, or installing a new vanity, may have a lower ROI compared to a more extensive renovation that includes changing the layout, upgrading plumbing and electrical systems, and using high-end finishes. Generally, the more comprehensive the renovation, the greater expected ROI of a bathroom renovation though the initial cost will also be higher.

Quality of the Materials:

Using high-quality materials and fixtures can improve the perceived value of your bathroom and potentially lead to a higher ROI. However, it’s important to strike a balance between quality and cost, as overspending on luxury materials may not yield a proportional increase in ROI.

Local Real Estate Market:

The ROI of a bathroom renovation can be influenced by the state of the local real estate market. In a seller’s market where demand for homes is high, renovations may yield a better return, as buyers are willing to pay a premium for updated features. In a buyer’s market, ROI may be lower, as buyers have more options to choose from. You can begin your research on the condition of your local real estate market here!

Overall Home Condition plays a big role in your ROI:

A bathroom renovation is just one part of your home. If the rest of your home is outdated or in poor condition, potential buyers may not be willing to pay a premium for the renovated bathroom alone. It’s essential to consider the overall condition and appeal of your home.

Location and Neighborhood:

The location of your home and the characteristics of your neighborhood can also impact ROI. If your home is in a desirable neighborhood with strong demand, renovations may yield a better return.

Energy Efficiency and Sustainability

Investing in energy-efficient fixtures and sustainable features (e.g., low-flow toilets, LED lighting) may appeal to eco-conscious buyers and potentially increase ROI over the long term due to reduced utility costs.

Using professionals vs. DIY-ing your bathroom renovation:

DIY renovations can save on labor costs but may result in a lower-quality finish if not done correctly. A professionally executed renovation may yield a higher ROI because it is likely to be of higher quality and more appealing to potential buyers.

( Check out our article for 2023’s Hot Bathroom Design Trends! )


Market Conditions at Time of Sale:

The timing of when you sell your home can also affect the ROI. If you sell during a period of high demand or when there is limited inventory in your area, you may achieve a better price for your renovated bathroom.

So with all that in mind, is there an estimated ROI of a bathroom renovation?

In general, bathroom renovations tend to have a decent ROI, with estimates ranging from 60% to 80% or more of the project’s cost. However, it’s important to remember that the primary goal of a bathroom renovation is to improve your quality of life and comfort while you’re living in the home. If you plan to stay in your home for an extended period, the personal enjoyment you derive from the updated bathroom can be a significant part of the return on your investment, even if you don’t recoup the entire cost when you sell the property.