How Much Value Does a Bathroom Remodel Add to Your Home?

A bathroom is one of the most essential spaces in your home, so why not make it the best it can be? A bathroom remodel can provide a significant return on your investment (ROI) and help boost your home's worth.

On average, these renovations recoup around 71% of their costs, according to the National Association of Realtors. They also bring something else unexpected: Joy. After a bathroom upgrade, homeowners report a joy score of 9.6 out of 10.

A bathroom remodel doesn't mean taking the space down to the studs and starting from scratch. You can update an outdated bathroom to a more modern style on any budget, with tweaks as minor as a new faucet or paint color—or as extensive as adding built-in cabinets and vanities.

Bathroom Remodeling Ideas

When it comes to bathroom renovations, choosing the right upgrades can make a big difference in your home’s value and its appeal to potential buyers.

Here are five ideas that will look great and give you a solid bang for your buck.

1. Upgrade to a luxurious shower

There's nothing quite like a spa-like shower to wash away the day's stresses. If your shower feels a little lackluster, a few upgrades can make a difference.

Consider swapping out your old showerhead for a more luxurious rainfall showerhead. A frameless glass enclosure can instantly modernize your bathroom and create a sense of openness. New built-in shelving or niches provide a convenient spot for storing toiletries and keeping your shower clutter-free . Adding a freestanding tub allows you to pamper yourself whenever you need some “me” time.

Tip: If you're on a budget, focus on upgrading just one or two elements of your shower, such as the showerhead or the enclosure. Even small changes can greatly impact your bathroom's overall look and feel.

Estimated Cost:

• Mid-range remodel: $3,000 - $10,000. This may include a new shower stall or prefabricated insert, tiled walls, a new showerhead and fixtures, and a built-in shelf or niche.
• Upscale remodel: $10,000+. This may include a larger, walk-in shower with multiple showerheads, body sprays, a steam feature, high-end tile and fixtures, and custom glass doors.

2. Install a double bathroom vanity

A dingy or outdated vanity can age a bathroom. If your current vanity is in good shape but needs a refresh, consider making DIY changes like updating the countertop and hardware or adding a new coat of paint. Even small changes can give your bathroom a fresh look without a major investment.

For bigger changes, like switching from a single vanity to a double, it's best to hire a licensed plumber. A double vanity provides extra counter space and storage, perfect for busy households or couples sharing a bathroom. It also adds a touch of luxury and can make your bathroom feel more spacious.

Tip: If you don't have the budget for high-end materials like marble or granite, look into more cost-effective options such as concrete or high-end laminate.

Estimated Costs:

• Mid-range remodel: $1,000 - $5,000. This might include a new vanity with two sinks, countertops, faucets and possibly new lighting and mirrors.
• Upscale remodel: $5,000+. Think custom-built vanities with high-end countertops like marble or quartz, designer faucets and installed lighting.

3. Update your existing flooring and light fixtures

Outdated flooring and lighting can make your bathroom feel dull and uninviting. Brighten up your space and give it a fresh, modern feel by replacing old floor tiles with a durable and stylish option like porcelain tile or luxury vinyl plank.

Upgrading your lighting fixtures can also change the look and feel of your bathroom. For a layered lighting approach that creates a welcoming and relaxing atmosphere, consider a combination of ambient lighting (ceiling fixtures), task lighting (vanity lights) and accent lighting (LED strip lights).

Tip: Consider installing dimmer switches for your bathroom lighting. That way, you can create different moods and ambiance or time of day.

Estimated Costs:

• Mid-range remodel: $500 - $3,000. This could include replacing the flooring with tile or vinyl, updating the vanity lighting, and adding a new ceiling fixture.
• Upscale remodel: $3,000+. Think heated floors, designer lighting fixtures, and high-end tile or natural stone flooring.

4. Add Smart Technology

Incorporating smart technology into your bathroom can improve its functionality, convenience and overall appeal to potential buyers.

Apps and products allow you to do everything from start your shower to heat your toilet seat with a touch of your phone or voice command. And smart mirrors, lighting and other tools offer additional functionality, like weather alerts, while preparing for your day.

Tip: If you're new to smart home technology, start with simple upgrades like a smart speaker or plug that controls lighting. You can always add more features later as you get a bigger budget.

Estimated Costs:

• Mid-range remodel: $500 - $2,000. This might include adding a smart speaker, smart plugs or a smart showerhead.
• Upscale remodel: $2,000+. This could involve installing a smart toilet, a smart mirror with integrated lighting and displays, or a complete smart home system for your bathroom.

5. Optimize your storage

A cluttered bathroom can make a smaller space feel overwhelming. No matter how beautiful the design, overflowing cabinets and countertops can impact even the most spacious bathroom.

That's why optimizing your storage is a crucial aspect of any bathroom remodel. Ample storage is key to creating a functional space, especially in smaller bathrooms. If your current storage solutions are lacking, consider upgrading to maximize your storage capacity.

Tip: If you're short on space, get creative with your storage solutions. Recessed medicine cabinets, pull-out hampers and vertical storage towers can help you make the most of limited space.

Estimated Costs:

• Mid-range remodel: $3,000 - $12,000. This could include adding new shelving, upgrading to a vanity with more drawers, installing a medicine cabinet, or adding a freestanding storage unit.
• Upscale remodel: $12,000+. This may include custom-built cabinetry, pull-out drawers with built-in organizers, a linen closet or a built-in storage bench.

Bathroom Remodel Cost Considerations

Before starting any home remodel, it's important to understand the costs involved. Bathroom remodel costs can vary significantly, depending on several factors.

Average bathroom remodel costs

• The national average cost for a bathroom remodel in 2024 is approximately $12,000.
• Most projects range between $7,500 and $18,500.
• Costs can be as low as $2,500 for a minor refresh or as high as $80,000 for a luxury remodel.

Factors affecting costs

• Size and type of bathroom: Remodeling a primary bathroom will generally cost more than updating a smaller guest bathroom or powder room.
• Scope of the project: A full remodel involving structural changes, plumbing relocation and high-end materials will be more expensive than a simple cosmetic update.
• Materials and fixtures: The choice of materials and fixtures impact costs. Opting for luxury materials like marble or custom cabinetry will increase the budget.
• Labor and design: Labor costs, including design fees, varies depending on your location and project complexity.

Getting multiple quotes from reputable contractors and comparing their estimates is essential before deciding. Be sure to factor in unexpected costs and allow flexibility in your budget.

How much does adding a bathroom increase home value?

Before starting on a bathroom remodel, consult with a real estate agent to get a sense of the potential value a bathroom can add to your home in your area.

How much value does adding a bathroom add?

Adding a bathroom to a home can significantly increase its value, but the exact amount depends on several factors, including the type of bathroom added, the quality of the finishes, and the local market.

In general, adding a full bath may increase your home's value by up to 20%, while a half bath can add another 10%.

How much value does renovating a bathroom add?

While a bathroom remodel may not recoup the entire renovation cost, it's still one of the higher-return projects in home improvement. It can also improve the enjoyment and functionality of the space for you and your family.

Renovating can also improve your home's value long-term. Even minor cosmetic changes can add a $1.71 increase in home value for every $1 spent. And professional remodels can recoup between 64% and 73% of the costs of the renovation.

While bathroom remodels can significantly improve the space and boost your home's overall appeal, it's important to be mindful of the potential return on your investment.

To maximize your potential ROI, prioritize upgrades that appeal to a broad range of buyers, such as improved functionality, energy-efficient fixtures, and a modern look.

How Bathroom Remodels Can Impact Your Home's Value

When you apply for a mortgage or refinance, lenders typically require a home appraisal to assess the property's value. A remodeled bathroom can make a positive impression on the appraiser, potentially leading to a higher appraised value.

This can be especially beneficial if you're looking to refinance or borrow against your home's equity.

A bathroom remodel can positively impact your home's value in a few key ways:

• A remodeled bathroom can make your home more attractive to buyers, potentially leading to a faster sale and a higher selling price.
• The increased value can improve your chances of qualifying for a larger mortgage or a lower interest rate when refinancing.
• If you're staying put, the added value may help you build equity in your home which you may be able to borrow from later if you need a loan.

Financing Options

When budgeting for your bathroom remodel, it's essential to consider the various financing options available.

Two common choices include:

• Home equity loans: If you have built up equity in your home, you might be able to tap into it with a home equity loan. This allows you to borrow against the value of your home, often at a lower interest rate than other loan types.
• Personal loans: Personal loans offer another way to finance your remodel. They typically have fixed interest rates and repayment terms, making it easier to budget for your project.

Before starting any project, consider consult with a financial professional to understand how a bathroom remodel fits into your budget, and a mortgage professional to see if those upgrades could impact your home's value. If you're considering taking a loan to pay for renovation costs, compare interest rates, terms and fees from different lenders.

Thinking of Selling Your Home? Chat with Your AAA Insurance Agent.

A well-planned bathroom remodel can transform your daily routine, boost your home's value, and even open doors to better mortgage options. By carefully considering your budget, goals and the expert advice of professionals, you can create a bathroom that enhances your life and adds lasting value to your home.

It’s also wise to make sure you’ve got enough homeowners insurance coverage. Review your policy annually and contact your agent if you’ve made significant changes to your home.