Planning

Does a remodel increase home value?

Usually, yes — but the honest answer has a twist most people don’t expect: smaller, tasteful updates tend to return a higher percentage of their cost than large, upscale remodels do.

What industry cost-vs-value research shows

• Minor kitchen updates recoup the most. Cosmetic-level kitchen refreshes have, in various years of industry reporting, recouped anywhere from roughly 85% to over 100% of their cost at resale.
• Major, upscale kitchen remodels recoup meaningfully less. Full high-end remodels have tended to return somewhere in the 35-55% range — still real value, just a smaller share of what was spent.
• Bathroom remodels generally land in between. Mid-range bathroom updates have commonly recouped somewhere around 65-80%, with basic refreshes sometimes performing even better.
• Sources disagree on exact numbers, every year. Different industry reports cite different percentages for the same category — the pattern (modest updates outperform lavish ones, proportionally) is the consistent part, not any single number.

Why bigger spending doesn’t mean a bigger return

A buyer pays for a kitchen or bathroom that feels updated and functional, not necessarily for how much was spent getting there. Beyond a certain point, premium finishes mostly serve your own enjoyment of the home while you live in it, rather than adding a proportional amount to what a buyer will pay later.

What actually affects your real return

• Your neighborhood’s expectations. A remodel that matches what buyers expect in your area holds value better than one that’s noticeably above or below the norm for nearby homes.
• Timeless vs. trendy choices. Trend-driven finishes can look dated within a few years; classic choices tend to hold their appeal longer.
• How long you’ll own the home. If you’re not selling soon, the real return is years of actually using the space — financial ROI is only part of the picture.

If resale value specifically is your goal (not just wanting the updated space), a well-executed moderate remodel is generally the better financial bet over a maximalist one. Either way, getting a few real quotes — not a single contractor’s opinion — is how you find out what a sensible scope actually costs for your home.

Figures synthesized from multiple citations of industry cost-vs-value research (not independently verified against the original report); percentages vary by year, region, and source, so treat these as directional patterns rather than guaranteed numbers for your home.

See our kitchen and bathroom cost guides for what these projects actually cost in the LA area.