What Is the ROI of a Bathroom Remodel?

HOME RENOVATION — REIMAGINED

A streamlined renovation platform to design, plan, and build—all in one place.

Help your friends renovate.

Get $200 when your friend completes a proposal call, and you'll both get $1,000 if they move forward with a deposit.

If you plan to sell your home sometime in the future, you may approach a remodeling project wondering what kind of return on investment you could get. It’s only natural to want to know what changes make the most sense financially, especially when the upfront costs are significant.

A bathroom renovation, for instance, is one of the best indoor remodels that can pay off when it comes time to sell. Most properties with renovated bathrooms sell for a higher price and faster than homes that require major updates.

The exact ROI you’ll see on your own place depends on a variety of factors, such as how the real estate market is doing in your neighborhood at the time of the listing and how the rest of your home compares to other places sprouting “For Sale” signs in the area. Still, these guidelines are a good starting point:

Average ROI on Bathroom Remodels

Remodeling magazine prepares an annual Cost Vs. Value Report on the average ROI of specific remodeling projects, including bathroom renovations. For 2020, it reported that a midrange bathroom renovation returns 64% of the cost at resale nationally. The average amount spent on such a remodel was $21,377, and the homeowner received an additional $13,688 on the sale of the home. For New York City, the average midrange remodel cost $28,585 and sellers recouped $17,889.

The magazine uses a highly standardized list of specifications to compile its data and defines a midrange remodel as an update with all new fixtures, including replacing the tub, tile surround, toilet, countertop, vanity, floor, and faucets.

Over the past decade, the ROI on such a bathroom remodel has fluctuated between 64% and 72%.

ROI on Universal Design

The magazine also determined that a bathroom remodel incorporating universal design features (which are adapted for anyone including people with mobility issues or disabilities) has a slightly lower ROI of 62%. While many of these features—curbless, walk-in showers, radiant heated floors, ceramic tile on the walls, and humidity-sensing, ultra-quiet ventilation fans—are popular with a multitude of buyers, it’s possible that extra costs linked to items like comfort-height toilets with bidet seats, fold-out shower seats, easy-grasp handles, and bi-directional glass doors resulted in a slightly lower ROI. In New York City, the average price for the universal design project was $44,731 and sellers saw a return of $25,562

Upscale Projects

Remodeling magazine priced out what it calls an upscale remodel, which involves doubling or tripling the size of a standard bathroom and relocating all the fixtures. The new larger bathrooms can be outfitted with a freestanding soaking tub, custom cabinetry, and stone countertops with double sinks. This type of project netted sellers a 56.6% ROI.The NYC cost of an upscale remodel was $88,523 with an ROI of about 53%.

Buyers Love Updated Baths

Real estate agents know from experience that renovated bathrooms can make your home stand out and attract buyers, while old, dated fixtures can reduce its appeal.

“Now, more than ever, buyers are looking for renovated apartments,” says Mark D. Friedman, an associate broker with The Friedman-Rosenthal Team at Halstead Manhattan, LLC.. “Money is tight even when buying an apartment for $1 million so buyers don’t want to do work. A renovated bathroom will always make the home sell faster and for more.

Fiona Dogan, an agent with Julia B. Fee Sotheby’s International Realty in Rye, New York, concurred. “Bathrooms are a ‘money room’ in a house. An unrenovated bathroom can absolutely be a deal-breaker for buyers,” she says. “Today’s buyers don’t want to deal with the expense or the hassle of designing, ordering materials, and constructing a new bathroom. HGTV and Instagram have conditioned them to expect picture-perfect homes.”
In her experience, the ROI on renovating a bathroom has been close to 100%.

“When it comes to budget, consider making improvements that are in line with the value of the home,” she added.It’s also important to match the renovation to the expectations of people buying in your neighborhood. Working with a professional design-build team like Block Renovation, is a great way to get expert advice, choose the right grade of materials, and ensure your renovation will appeal to the greatest number of buyers in your area.

Your Emotional ROI

While you want your home to appeal to buyers when you sell, there’s no way to guarantee an exact financial ROI on a bathroom remodel. However, you’ll almost certainly enjoy your renovated bathroom more than you would living in a dated space. And that enjoyment factor can be a huge ROI on your investment.

In fact, the National Association of Realtors has developed the Joy score to determine how a remodeling project impacts a homeowner’s life. It gives a remodeled bathroom a Joy score of 9.3 out of 10. The association says that 70% of consumers have a greater desire to be home, and 58% enjoy their home more, all thanks to the bathroom remodel.

To plan your dream bathroom, try the Block Visual Planner and get started on your own renovation project.

Stay in the loop with occasional updates from Block.