How Much Does A Kitchen Remodel Increase Home Value?

The kitchen is more than just a place to cook—it’s the centerpiece of a home. It’s where families gather, where guests mingle, and where the right upgrades can make a huge difference in resale value. In fact, minor kitchen remodels can recoup up to 85.7% of their cost, making them one of the smartest investments in home renovation. But not all remodels are created equal.

If you're considering a kitchen remodel, the big question is: How much should you spend, and what upgrades offer the best return on investment (ROI)? In this guide, we’ll break down the financial side of kitchen renovations, from costs and ROI to must-have upgrades that add serious home value.

At Franklin Construction, we’ve helped countless homeowners transform outdated kitchens into stunning, functional spaces that buyers love. If you're ready to start planning, give us a call at 615-400-0892, or visit franklingrp.com.

What is Kitchen Remodeling?

Kitchen remodeling is more than just replacing cabinets or getting new countertops. It’s about reimagining the space—improving layout, functionality, and aesthetics to create a kitchen that works for you and attracts future buyers.

A remodel can be as simple as updating appliances and refinishing cabinets, or as complex as a full-scale renovation with new flooring, lighting, and layout changes. The right project depends on your budget, goals, and how much value you want to add to your home.

How Much Does A Kitchen Remodel Cost?

The cost of a kitchen remodel varies significantly based on the scope of work, materials used, and labor costs.

• Minor Remodel – Costs around $26,790 with an 85.7% ROI.

• Major Remodel – Costs around $154,483, but the ROI drops to 31.7%.

• Luxury Remodel – Can exceed $100,000, but returns depend on local market demand.

How to Budget Wisely:

1. Stick to the 5-15% Rule: Spend at least 5% but no more than 15% of your home’s value on a remodel.

2. Prioritize High-Impact Upgrades: Focus on cabinets, countertops, and appliances.

3. Plan for Unexpected Costs: Set aside 10-15% of your budget for surprises.

What Percentage of Your Home Value Should You Spend on A Kitchen?

Spending too much or too little on a remodel can backfire. According to HomeAdvisor, homeowners should follow the 5-15% rule:

• If your home is worth $400,000, aim to spend $20,000–$60,000 on the kitchen.

• Spending less than 5% might not make an impact.

• Spending over 15% could make your home the most expensive in the neighborhood, limiting ROI.

Bottom line: Invest wisely to ensure your remodel enhances both livability and resale value.

Is A Kitchen Remodel Worth It?

Absolutely. A well-planned kitchen remodel can increase home value, improve daily functionality, and make your home more attractive to buyers. Here’s why:

1. Making The Kitchen Safer

Old kitchens can have faulty wiring, leaking pipes, and outdated appliances—all of which can be safety hazards. A remodel helps eliminate risks and create a safer cooking environment.

2. Improving The Kitchen Layout

Cramped kitchens make cooking a hassle. A remodel can improve the flow and accessibility, making everyday tasks easier and enhancing the overall buyer appeal.

3. Correcting Kitchen Functionality

Issues like poor ventilation, dim lighting, and inefficient storage can frustrate homeowners. A remodel ensures the kitchen is optimized for cooking, dining, and socializing.

4. Lowering Maintenance

Replacing high-maintenance materials with durable, easy-to-clean surfaces—like quartz countertops and vinyl flooring—reduces long-term upkeep costs.

5. Making The Kitchen More Attractive

An outdated kitchen can turn buyers away. Simple updates like modern cabinetry, sleek countertops, and fresh paint can completely transform the space.

Does a Kitchen Remodel Add Value to Your Home?

A well-executed kitchen remodel doesn’t just enhance your daily experience—it directly increases your home’s market value. Buyers are naturally drawn to modern, functional kitchens, and they’re willing to pay a premium for homes that offer high-end finishes, updated appliances, and smart layouts. However, the key to maximizing your return is strategic spending.

So, how can you ensure your remodel boosts value without overextending your budget? Here are three essential tips:

Tip 1: Set Your Priorities

Focus on improvements that offer long-term value. High-traffic areas like countertops, cabinets, and flooring should be top priorities since they significantly impact aesthetics and functionality. Appliances are also a worthwhile investment, as modern, energy-efficient models attract buyers and reduce maintenance concerns.

Tip 2: Avoid Over-Improving

It’s tempting to go all out on a luxury kitchen, but be cautious—over-improving beyond the value of your neighborhood can hurt your ROI. If your home is the most expensive one on the block, potential buyers may be reluctant to pay the premium. Research local real estate trends to ensure your renovation aligns with market expectations.

Tip 3: Be Cautious with Your Budget

Kitchen remodels often come with unexpected costs. A hidden plumbing issue, outdated wiring, or unforeseen structural repairs can quickly add up. That’s why experts recommend setting aside 10–15% of your total budget for surprises. Planning ahead ensures you stay on track financially and avoid stress mid-project.

What Is the Average ROI of a Kitchen Remodel?

Not all kitchen remodels yield the same return on investment (ROI). The level of renovation—whether it’s a minor update or a full-scale remodel—determines how much value you’ll recoup when selling.

According to the latest Remodeling Magazine Cost vs. Value Report:

• Minor kitchen remodels (updating cabinets, countertops, and appliances) cost around $26,790 and yield an average 85.7% ROI.

• Major kitchen remodels (full-scale renovations with high-end materials) cost approximately $154,483 but return just 31.7% ROI.

Clearly, smaller, budget-conscious remodels tend to provide the best returns. Instead of gutting your entire kitchen, focusing on key upgrades like cabinets, countertops, and appliances can provide a significant value boost without overspending.

Factors That Influence Kitchen Remodel ROI

Several elements affect how much value your remodel will add:

• Location – Homes in competitive real estate markets, especially in high-demand areas, tend to see higher returns on kitchen remodels.

• Scope of Renovation – Simple upgrades with broad appeal (like modern cabinets and quartz countertops) generate better ROI than highly personalized renovations.

• Current Market Trends – Energy-efficient appliances, smart kitchens, and open layouts are increasingly desirable and can command higher resale prices.

Before making any major decisions, it’s wise to consult a local real estate expert to gauge what buyers in your area prioritize.

What Are the Important Kitchen Upgrades That Add Home Value?

Not all kitchen upgrades deliver the same return. If you want to get the most out of your renovation, focus on these high-impact improvements:

Adding a Kitchen Island

A well-designed kitchen island enhances both functionality and aesthetics. It provides extra counter space, additional storage, and a natural gathering spot for entertaining. If space allows, adding seating to your island makes it even more appealing to buyers looking for an open-concept kitchen experience.

Upgrading Cabinets

Cabinets are one of the first things buyers notice in a kitchen. While full cabinet replacements can be expensive, refacing or repainting existing cabinets can achieve a similar modern look at a fraction of the cost. Opt for neutral tones and classic designs that appeal to a wide range of buyers.

Upgrading Appliances

Modern, energy-efficient appliances are a major selling point. Many buyers prioritize stainless steel, smart appliances, and eco-friendly options. If your appliances are outdated, upgrading them can make a significant difference in both visual appeal and resale value.

Replacing Countertops

Countertops serve as both a design statement and a functional workspace. Quartz and granite remain top choices due to their durability, easy maintenance, and luxurious appearance. While laminate options are more budget-friendly, higher-end materials tend to attract more buyers.

Adding a Multipurpose Area

With the rise of remote work and flexible lifestyles, many homeowners are looking for versatile spaces. If you have extra room in your kitchen, consider incorporating a workspace, coffee bar, or breakfast nook. Buyers love spaces that offer both form and function.

Increase Home Resale Value with Franklin Construction!

A kitchen remodel is one of the smartest investments you can make in your home. Whether you're updating for personal enjoyment or prepping to sell, choosing the right upgrades can significantly impact your home’s marketability and value.

At Franklin Construction, we specialize in high-quality kitchen renovations that balance aesthetics, functionality, and ROI. Our team of experienced professionals will guide you through every step, ensuring your remodel meets both your needs and market demands.

📞 Ready to boost your home’s value? Call us at 615-400-0892 or visit franklingrp.com to get a free consultation today!