How Much Does a Kitchen Remodel Increase Home Value? The Complete ROI Found Here - America's Advantage Remodeling

How Much Does a Kitchen Remodel Increase Home Value? The Complete ROI Found Here


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How Much Does a Kitchen Remodel Increase Home Value

Are you looking to increase the value of your home? If so, one of the best places to start is in your kitchen. The kitchen is considered the most valuable place in a home right above the bathrooms and the master bedroom. A kitchen remodel can be the perfect opportunity to breathe new life into your home, while also increasing its overall worth.

According to America’s Advantage Remodeling, a quality kitchen remodel can add a significant amount to your home’s value. If you want to sell your home, kitchens sell houses. Invest in your kitchen whether you decide to reside long-term or short-term.

But just how much can you expect to see your home’s value rise after a kitchen renovation? Will you get a return on all your money? Let’s take a closer look at the numbers and dive into the details of how a kitchen remodel can benefit you.

Average ROI on Kitchen Remodels

An average kitchen

In Sacramento, California, the average return on investment (ROI) for kitchen remodels is quite impressive. Homeowners can expect an average ROI of about 60-80% of the total remodel cost. This means that if you spend $20,000 on a newly remodeled kitchen and kitchen upgrades, you could potentially increase your home’s value by $12,000 to $16,000.

However, it’s crucial to remember this is a general range and the exact ROI can vary based on numerous factors, including the quality of the remodel, if it was a major or minor kitchen remodel, the housing market conditions, and the specific demand for renovated kitchens in your area.

Kitchen Remodel ROI Breakdown

A complete kitchen renovation can be one of the most important investments in your home. However, it can be overwhelming to determine where to start and how to allocate your budget for maximum return on investment (ROI). That’s why breaking down a kitchen remodel into different sections can help you assess the ROI for each area.

By dividing the project into sections such as cabinets, countertops, and appliances – or even further into hardware, light fixtures, and flooring – you can prioritize your spending and understand how each section contributes to the overall value of your home. Not only will this approach save you money in the long run, but it will also increase the functionality and aesthetic appeal of your kitchen.

1 | Cabinets

A line of cabinets

Cabinets are an essential part of any kitchen remodel as they not only provide valuable storage but also significantly contribute to the overall aesthetic of your kitchen. Updating your cabinets can be done in a variety of ways, from a simple paint job to a complete replacement, depending on your budget and the current state of your cabinets.


Standard Cabinets

If you opt for standard, off-the-shelf cabinets, you could expect to recoup about 70% of your costs. For example, if you spend $5,000 on new cabinets, the value of your home could increase by approximately $3,500. This is a significant increase considering the relatively low initial investment.

Custom Cabinets

Custom cabinets, on the other hand, are a larger investment. If you go the custom route, the ROI might be lower in terms of percentage, typically around 50-60%. However, keep in mind that custom cabinets can greatly enhance your kitchen’s uniqueness and appeal, which can be highly attractive to potential buyers.

Therefore, even though the percentage ROI might be lower, the total dollar value added to your home may be higher. For instance, if you invest $10,000 in custom cabinetry, you might see an increase in home value by $5,000 to $6,000.

Cabinet Hardware

Investing in new cabinet hardware such as handles, knobs, and drawer pulls is a relatively affordable way to update the look of your cabinets. The ROI for this type of upgrade may not be significant on its own but can add value when combined with other kitchen renovations.

2 | Appliances

A kitchen appliance

Investing in professional-grade appliances can provide a considerable boost to your kitchen remodel’s ROI. A kitchen fitted with high-end appliances is often seen as a luxury, and thus, can significantly enhance the perceived value of your home. On average, homeowners can expect a return of about 60-75% on the investment in appliances.

For instance, if you were to spend $8,000 on a high-quality stove, refrigerator, and dishwasher, the value of your home could increase by approximately $4,800 to $6,000. However, it’s important to remember that these figures can fluctuate based on your local real estate market and the demand for such upgrades.

Additionally, the appeal of professional new appliances goes beyond just financial gains; these appliances often feature advanced functionalities and elegant designs that can increase the usability and aesthetic appeal of your kitchen. Appliances now are made to be more efficient to help you save money. Thus, they can also contribute towards a quicker sale when you decide to put your house on the market.

3 | Countertops

Kitchen countertops

Countertops are another significant factor that can impact the ROI of your kitchen remodel. They not only add to the visual appeal of your kitchen counters but also contribute to its functionality. Homeowners can expect an average return of 50-80% on their investment in countertops.

If you choose to invest $3,000 in high-quality granite or quartz countertops, the value of your home could increase by approximately $1,500 to $2,400. However, it’s important to note that the specific type of countertop material and its durability can also play a role in determining the ROI. Granite countertops and quartz countertops are sought after and increase ROI.

4 | Tile Backsplash

Eloquent tile backsplash

A tile backsplash is a relatively inexpensive but impactful part of a kitchen remodel, adding both visual interest and practicality. It’s estimated that the ROI on a tile backsplash can range from 50-70%.

Thus, if you invest $2,000 on a new tile backsplash, you might see a $1,000 to $1,400 increase in your home’s value. Not only does a new backsplash protect your walls from splashes and stains, it also serves as a design focal point that can dramatically uplift the aesthetic appeal of your kitchen.

Tile backsplashes offer a wide range of materials, colors, and designs, allowing homeowners to infuse their personal style while enhancing the kitchen’s overall appeal. Additionally, a well-chosen backsplash can complement your countertops and cabinets, creating a cohesive look that potential buyers are sure to find attractive.

5 | Lighting

A kitchen with excellent lighting

Proper lighting is a key component of any kitchen remodel, enhancing both the functionality and the aesthetic appeal of the space. From spotlighting for specific tasks to ambient lighting for a warm and inviting atmosphere, a well-lit kitchen can significantly elevate its overall look and feel. On average, homeowners who invest in high-quality, energy-efficient lighting can expect a return on investment (ROI) of approximately 70-80%.

For instance, if you were to spend $2,000 on a comprehensive lighting upgrade, including under-cabinet lights, recessed lighting, and a statement pendant or chandelier, the value of your home could potentially increase by around $1,400 to $1,600. Moreover, in today’s energy-conscious society, the addition of energy-efficient lighting options, such as LED or solar-powered fixtures, can also be a selling point to potential buyers, possibly resulting in a quicker sale.

6 | Flooring

Beautiful hardwood flooring in a kitchen

Flooring is a vital element in any kitchen remodel. Upgrading your flooring, particularly to hardwood, can significantly elevate the aesthetic appeal and functionality of your kitchen. Hardwood floors are known for their timeless beauty, durability, and the warmth they bring to any space.

When it comes to return on investment (ROI), hardwood flooring in a kitchen remodel can bring a substantial return. On average, the ROI for installing hardwood flooring can range from 70-80%. For instance, if you were to invest $4,000 in installing hardwood flooring, the resale value of your home could potentially increase by approximately $2,800 to $3,200.

It’s important to note that these figures can vary based on factors such as the type of hardwood used, the quality of the installation, and the prevailing real estate market conditions. However, hardwood flooring is generally well-regarded and sought after by potential home buyers due to its elegant appearance and long-term durability, which can lead to a faster sale.

Reasons to Remodel Your Kitchen

An updated kitchen

Updated Look and Feel

Kitchen remodels can significantly improve the aesthetic appeal of your home. With new appliances, countertops, and flooring, an outdated kitchen can transform into a modern, stylish, and inviting space that you and your family will love to use.

Increased Home Value

As previously discussed, various elements of a kitchen remodel, such as high-end appliances, quality countertops, and hardwood flooring, can significantly increase the value of your home, often offering a substantial return on investment.

Improved Functionality

A remodel can allow for a more efficient layout and the incorporation of modern appliances, making daily tasks easier and the kitchen more enjoyable to use.

Energy Efficiency

Upgrading to energy-efficient appliances and lighting not only reduces your home’s environmental impact but can also result in significant saving on energy bills.

Safety Improvements

Updated kitchens can provide safer cooking and storage solutions, reducing the risk of accidents.

Enhanced Comfort and Enjoyment:

Ultimately, remodeling your kitchen can make the space more comfortable and enjoyable. Whether it’s adding a kitchen island for more seating or improving the lighting for a warmer ambiance, these upgrades can make your kitchen a more pleasant place to spend time in.

People Also Ask

What adds the most value to a kitchen remodel?

If you’re looking to make the most significant impact on your home’s resale value, consider upgrading your countertops. Quartz, marble, and granite surfaces are all popular options known for their durability, stylish appearance, and impressive return on investment. Not only will these materials add a sophisticated touch to your kitchen aesthetic, but they’ll also make meal prep and cooking easier than ever before.

What are the three most expensive items in a kitchen remodel?

The three most expensive items in a kitchen remodel are cabinets, countertops, and appliances. These three elements make up the foundation of any kitchen and are essential for both functionality and design.

Cabinets can range from basic stock options to custom-made designs, while countertops can vary in price depending on the material chosen. Appliances also come with a wide price range, but investing in high-quality, energy-efficient appliances can add significant value to your remodel.


In conclusion, a kitchen remodel is a valuable investment that can significantly enhance the look, feel, and functionality of your home, as well as substantially increase its resale value. Whether it involves upgrading countertops, installing energy-efficient appliances, adding a stylish backsplash, improving the lighting, or laying down hardwood flooring, each element contributes uniquely to the overall appeal of your kitchen.

While the cost can be substantial, the potential return on investment and increased enjoyment of your space make it a worthwhile endeavor. So, take the plunge and transform your kitchen into a space that truly reflects your style and meets your culinary needs.

Contact AAremodels

Here At AAremodels (Americas Advantage Remodeling) we specialize in bathrooms, Kitchens, flooring, and more. If getting a home remodel is something you are interested in take advantage of AAremodel. Our specialized time would love to help. you can reach out to us via phone (916) 702-3941 through our email [email protected] Or directly off our site with the Contact Us button in the top right. Whatever your question is we want to help.


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