“A broad rule of thumb is that you should spend about 5 to 15 percent of your home value on kitchen renovation,” says Dan DiClerico, a smart-home expert for HomeAdvisor, a home improvement platform in New York City. “So, if your home is worth $300,000, you should spend $15,000 to $45,000 on the kitchen.
What Percentage of Your House Value Should You Spend on a Kitchen? Experts suggest that homeowners should spend 6 to 10% of the home's value on a kitchen renovation. Spending more than that might not give you a good return on your investment.
A useful rule of thumb is a kitchen remodel should cost no less than 5% and no more than 15% of the value of your home. Once you have this number in mind, add an extra 20% of this budget on top to set aside for unexpected costs.
So far, the industry's standard ROI for mid-range kitchen makeover falls between 50% to 60% of your overall budget for remodeling. For instance, if you spent $69,000 redoing your kitchen, then you can expect to recoup around $34,500 to $41,400.
You don't want to spend more than 10 to 15 percent of your home's value on a single room. If you spend more, the value of the renovation will not proportionally add to the value of your home. For example, if your home is worth $100,000, the maximum you should spend on a kitchen or bathroom renovation is $15,000.
An average kitchen remodel will pay off more than a high-end renovation. According to Remodeling magazine's Cost Vs. Value Report, a major kitchen remodel costs $68,490 and homeowners recoup $40,127, which is 58.6 percent. An upscale kitchen remodel costs $135,547, with a 53.9 percent ROI.
With $50,000, a homeowner can afford a dream renovation, such as a high-end kitchen remodel that includes top-of-the-line appliances and cabinetry. Another option would be to add to the house's usable space by turning a screened porch or garage into a fully finished interior room.
The average cost of a new kitchen in the UK in 2020 is estimated at £8,000 (including VAT and fitting). Most kitchen renovations fall between £5,000 and £14,000 all in. However, this can greatly increase depending on the size of the kitchen, the style of the units and worktops, and a couple of other factors.
The national average cost to remodel a kitchen is about $22,000. That number doesn't tell the whole story though. Your new kitchen could cost anywhere from $5,000 to $50,000 or more, depending on the size and scope of your project. Typical kitchen remodels range from $12,500 to $33,000.
The average homeowner will spend $3,200 to $8,500 to replace their kitchen cabinets of average quality in a standard size kitchen. The average cost of kitchen cabinets ranges between $160 and $380 per linear foot for stock or semi-custom styles, and up to $1,000 per linear foot for custom cabinetry.
For example, the national average ROI for a major upscale kitchen remodel is almost 54%. That means you recoup about $68,000 after spending around $126,000. What about a smaller renovation project? The average cost of a minor kitchen remodel is about $21,000, and the average amount recouped is $17,000.
If you're planning to cash in on the bounceback in the property market by selling up soon, you might want to think about sprucing up your kitchen and bathroom first. According to research from Tap Warehouse, a kitchen and bathroom makeover could increase the value of your house by a whopping 10%.
Higher ROI
Creating a basement kitchen makes for an excellent financial investment. It increases the resale value of your home significantly – up to 85 percent of the expenditure!
Closure of facilities – public services, employment, amenities; if any of these services close, it could impact the value of your house as they're often appealing to buyers. Low school ratings – buyers pay to live in areas with good schools because they want their children to have access to the best education.
A home with a basement kitchen is more valuable than one without. Money spent on your basement kitchen will produce a return on investment up to 85% of your expenditure. The added amenities, such as a wet bar, appliances, and storage space, will also increase the home's value should you decide to sell.
The higher the home's value, the more buyers will expect to see high-end appliances in place. Lower estimated values will cater to buyers who are on a tight budget, and they may not like the idea that they're paying more for a house due to its luxury appliances (which many of them might feel indifferent too, anyway.)
Spending for home remodeling projects is expected to rise into 2022. A new Harvard University study predicts that spending on home remodeling and maintenance will increase by 8.6% through the middle of 2022. Integrators are seeing an increase in opportunities from projects coming from homes that already exist.
“A broad rule of thumb is that you should spend about 5 to 15 percent of your home value on kitchen renovation,” says Dan DiClerico, a smart-home expert for HomeAdvisor, a home improvement platform in New York City. “So, if your home is worth $300,000, you should spend $15,000 to $45,000 on the kitchen.
According to HomeStars, depending on your renovation you can expect about 75-100% ROI. The Appraisal Institute of Canada suggests spending roughly 10-15% of your home's value on a kitchen renovation. On average, HomeStars reports, kitchen renovations cost about $30,944 or $195 per square foot.