Kitchen remodels: What your money really buys

___

Published Date 10/29/2024

Want to renovate your kitchen? Be prepared for some eye-popping numbers. According to Wall Street Journal reporter Antonia van der Meer, while a modest $27,000 renovation might recoup 96% of its cost when you sell, going upscale could leave you with far less return on investment.

"A major upscale remodeling, averaging about $159,000, will return only about 38% when you sell," writes van der Meer. But as she points out, most homeowners aren't planning to flip their properties anyway. She quotes Todd Tomalak, a principal at home-construction research firm Zonda, who notes that "people are staying in their homes twice as long today as they were 25 years ago. Now they are more focused on the durability of the product and how much they will like it."

Van der Meer explores three distinct renovation projects that showcase different approaches and budgets. In Connecticut, architect Lisa Schwert took a sustainable approach to her 385-square-foot kitchen renovation, costing $150,000. "A primary goal was to repurpose as many high-quality materials as possible," Schwert told van der Meer. "We were able to reuse approximately 90% of the cabinetry." Despite this eco-conscious approach, high-end appliances still commanded a significant portion of the budget, with dual Sub-Zero units costing $9,350 each.

For a more modest project in North Potomac, Maryland, designer Lauren Carranza proved that luxury can be achieved on a smaller scale. Her 120-square-foot kitchen renovation came in at $64,000, though structural changes drove up costs. Carranza demonstrated clever budget management, like choosing a $300 Home Depot range hood instead of a custom $3,000 version, and selecting a KitchenAid refrigerator that mimicked the look of a Sub-Zero for $10,000 less.

The most ambitious project van der Meer profiles is interior designer Heather Golde's full rebuild in Bethesda, Maryland, totaling $227,000. After years of making do with a garage refrigerator and toaster oven, Golde created a 275-square-foot kitchen plus a butler's pantry. The renovation included practical luxuries like a 5-foot-long work station sink and an invisible induction stove embedded in the porcelain countertop. "It provides a much safer and cleaner way for the kids to enjoy cooking," Golde explained to van der Meer.

Even in this high-end project, Golde found ways to economize, choosing GE Monogram appliances over more expensive brands. "No one knows it's a Sub-Zero refrigerator once there's a panel on it," she noted, adding that maintenance costs for American-made appliances are typically lower.

Van der Meer's investigation reveals that successful kitchen renovations often combine strategic splurges with smart savings. Whether working with $64,000 or $227,000, each homeowner made conscious choices about where to invest and where to economize. The key takeaway? Focus on what matters most for your lifestyle rather than potential resale value, especially if you plan to stay put for a while.

As designer Schwert told van der Meer about her expensive marble countertops, "I love to use it day in and day out. You have to embrace the patina." It's a philosophy that seems to sum up the current approach to kitchen renovations: invest in what you'll enjoy, because you'll likely be living with it for quite some time.

WSJ, TBWS

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

“Equal Housing Lender. NEXA Mortgage, LLC NMLS 1660690. I am a licensed mortgage originator, NMLS # 630337, and licensed to originate mortgage loans in the state of AR, AZ, CA, NV, FL, GA, IL, MO, SC, TN, and TX. To learn more, visit my NEXA Mortgage website at https://lillianwong.net."