The ROI of a kitchen remodel in Minnesota ranges from 31.7% to 83.3%. This ROI varies depending on the scope and size of the project, the materials chosen, and the amenities selected.
To understand what your kitchen remodel ROI might look like, keep reading!
Project | Job Cost | ROI (%) | Cost Recouped | |||
Minor Kitchen Remodel | $35,000-$80,000 | 83.3 | $29,155.00 – $66,640.00 | |||
Major Kitchen Remodel | $80,000-$150,000 | 40.8 | $32,640.00 – $61,200.00 | |||
Luxury Kitchen Remodel | $150,000-$200,000 | 31.7 | $47,550.00 – $63,400.00 |
Data from the 2024 Cost vs Value Report: West North Central
Minor Kitchen Remodel ROI
This category covers small-scale renovations with a cost range of $35,000 to $80,000. With a high ROI of 83.3%, these projects typically recoup $29,155 to $66,640. The high ROI is attributed to the cost-effectiveness of minor upgrades, such as refinishing cabinets, updating appliances, and adding new countertops. These improvements often align with current buyer preferences, making the home more attractive while requiring a relatively modest investment.
Major Kitchen Remodel ROI
Falling within a cost range of $80,000 to $150,000, a major kitchen remodel yields an ROI of 40.8%. This translates to a cost recoupment range of $32,640 to $61,200. The lower ROI reflects the larger scope and higher expenses of these projects, which may include new cabinetry, premium appliances, and expanded layouts. Although the resale value increases, the cost-to-benefit ratio is less favorable compared to minor remodels due to the significant upfront investment.
Luxury Kitchen Remodel ROI
Luxury remodels cost between $150,000 and $200,000 and offer an ROI of 31.7%, resulting in a cost recoupment of $47,550 to $63,400. These projects focus on high-end materials, custom designs, and top-tier appliances. While these renovations greatly enhance the aesthetics and functionality of the kitchen, the high initial costs often limit the percentage of investment recovered. This makes luxury remodels ideal for homeowners prioritizing personal satisfaction over resale gains.
Factors Affecting The ROI of a Kitchen Remodel
Project Scope
The extent of the remodel, whether it’s a minor upgrade or a full-scale renovation, directly influences the costs and ROI. Minor projects often yield higher ROIs due to their affordability and focus on key upgrades that appeal to buyers.
Quality of Materials
Using midrange or upscale materials impacts both the cost and perceived value of the remodel. Midrange materials, such as quartz countertops, semi-custom cabinetry, and stainless steel appliances, often balance cost and quality, making them appealing to a broader market.
Upscale materials, like marble countertops, custom-made cabinetry, and high-end brands like Sub-Zero or Viking appliances, create a luxurious aesthetic but may not appeal to every buyer. While high-end finishes can significantly enhance the kitchen’s look, they often attract a niche market, which may result in lower cost recovery percentages.
Selected Amenities
The choice of amenities significantly impacts the cost and appeal of a kitchen remodel. Features like energy-efficient appliances, built-in wine refrigerators, and smart home integrations (e.g., touchless faucets or smart ovens) are increasingly popular among buyers and can add value.
Midrange amenities, such as standard stainless-steel appliances or a basic island with storage, tend to offer a higher ROI as they appeal to a broader audience.
On the other hand, upscale amenities like built-in espresso machines, dual dishwashers, or high-end induction cooktops can elevate the kitchen’s luxury but may not yield proportional cost recovery if the market doesn’t demand them.
The ROI depends on whether the selected amenities align with the preferences of the target homebuyers.
Tips To Maximize Your Kitchen Remodeling ROI
Prioritize Functionality Over Aesthetics
While style is important, focusing on functionality can yield a higher ROI. Consider practical upgrades like adding more storage solutions, such as pull-out pantry shelves or soft-close cabinets, which improve daily use and appeal to a wide range of buyers. Updating outdated appliances with energy-efficient models can also make the kitchen more attractive while reducing long-term energy costs. For example, replacing an old refrigerator with an ENERGY STAR-certified model not only improves the kitchen’s appeal but also signals cost-saving potential to prospective buyers.
Stick to Neutral, Timeless Designs
Trendy designs can quickly go out of style, making your kitchen feel dated when it’s time to sell. Opt for timeless, neutral color schemes like white, gray, or beige, which create a clean and versatile backdrop.
For example, white shaker-style cabinets paired with a subway tile backsplash are classic and universally appealing. Adding subtle touches like brass hardware or modern light fixtures can elevate the design without alienating buyers who prefer a more traditional look.
Invest in High-Impact, Low-Cost Upgrades
Small changes can make a big difference without breaking the bank. Updating hardware, repainting cabinets, or replacing old light fixtures can dramatically enhance the kitchen’s look at a fraction of the cost of a full remodel. For instance, swapping out dated cabinet knobs for sleek brushed nickel pulls can modernize the space. Similarly, installing LED under-cabinet lighting adds both functionality and a touch of sophistication that appeals to buyers.
Match the Remodel to the Home’s Value
Ensure your kitchen remodel aligns with the overall value of your home to avoid over- or under-improving. For instance, installing luxury amenities like marble countertops and high-end appliances in a modestly priced home may not yield a strong ROI, as buyers in that price range may not value or be willing to pay for such features. Conversely, in a high-end home, opting for budget finishes may reduce the property’s appeal and hurt the resale price. Research your local market to determine what buyers expect and tailor your remodel accordingly.
Conclusion
In summary, the ROI of a kitchen remodel depends heavily on the scale and scope of the project. Minor kitchen remodels stand out with a high ROI of 83.3%, offering cost-effective upgrades that align with buyer preferences and deliver significant returns. Major kitchen remodels, while more comprehensive, yield a moderate ROI of 40.8%, balancing increased functionality and resale value with higher costs. Luxury remodels, with their emphasis on premium materials and custom designs, provide an ROI of 31.7%, catering more to personal enjoyment than financial return. By understanding these distinctions, homeowners can better tailor their remodeling efforts to their goals, whether maximizing resale value or enhancing personal comfort.