Bathroom Addition: Return on Investment

Depending on the size of your family and the number of existing bathrooms in your house, adding a new bathroom may be one of the best home improvement decisions you’ll make. According to Greg Miedema, former chairman of the National Association of Home Builders (NAHB) Remodelers, additional bathrooms are highly desirable features. “You can almost never go wrong adding a bathroom,” says Miedema.

This is especially true if an additional bathroom helps relieve congestion at hectic times, or if it provides much-needed convenience for guests — no small considerations.

As an investment, a new bathroom has pros and cons. The national median cost of a midrange bathroom addition is about $50,000, but the percentage of recovered costs on that investment is a modest 52%, according to the “2015 Remodeling Impact Report” from the NATIONAL ASSOCIATION OF REALTORS®.

However, not all returns are monetary. All homeowners polled for the “Report” said they were happy or satisfied with their new bathroom addition, giving the project a perfect Joy Score of 10 out of 10.

An additional half bath may increase a home’s total value by about 10%, while an additional full bath increases the value by 20%, according to National Association of Home Builder data. However, that doesn’t mean you’ll recoup the full value of your remodeling investment — on average, you’ll spend almost twice what you recoup.

Before committing to a bathroom addition, call in a real estate agent or professional appraiser to evaluate whether an additional bathroom makes sense in your situation. Buyers tend to prefer houses where the number of bathrooms equals the number of bedrooms, according to NAHB.

6-foot-by-9-foot Bathroom Addition:

  • National Median Project Cost: $50,000
  • Cost Recovered: $26,000
  • Percentage Recovered: 52%
  • Joy Score: 10

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