Kitchen Remodel ROI: What the 2025 Numbers Actually Mean for Middle Tennessee Homeowners

If you've been Googling kitchen remodel ROI before pulling the trigger on a project, you've probably seen the same figure twenty times: 113 percent. That number is real. It's from the 2025 Cost vs Value Report by Zonda, and yes, it's the highest ROI on any interior remodeling project in the country. But the number alone is misleading if nobody tells you what it covers, what it excludes, and how much of it applies to a house in Franklin, Brentwood, or Nashville. This guide unpacks the actual math, the 2026 outlook, the specific upgrades that drive the return, and the ones that quietly drag it down. It's written from our side of the job site, after years of building kitchens across Middle Tennessee and watching what those kitchens do to appraisals, listings, and sale prices twelve months later.

At SH Design Woodcraft, we've seen the ROI conversation change three times in the last five years. Post-2020, everyone chased maximalist gut remodels. Post-2022, buyers cooled on custom-heavy kitchens. Today, the smartest homeowners are asking a sharper question: where does the money go, and where does it come back? The answer isn't the same as it was even eighteen months ago.

What Is the ROI on a Kitchen Remodel, Really?

What is the ROI on a kitchen remodel? It's the percentage of your project cost you recoup when you sell the home. If you spend $30,000 and your home's sale price rises by $30,000 because of that project, that's 100 percent ROI. If it rises by $34,000, that's 113 percent. If it rises by $15,000, that's 50 percent. Everyone quotes this number, but very few people explain what actually happens underneath.

The important thing to understand: cost recouped is not the same as money back in your pocket. Resale ROI is what a buyer will pay extra for the improvement, measured against what you spent. It doesn't include the years of daily use you got out of the kitchen. That's a separate category most homeowners undervalue. A kitchen with 60 percent resale ROI over five years of daily enjoyment is a fundamentally different investment than a kitchen with 60 percent resale ROI six weeks before you list.

There are really three types of ROI worth tracking:

1. Resale ROI. Percentage of cost recovered at sale.

2. Lifestyle ROI. Daily use value over the years you live in the home.

3. Risk reduction ROI. Avoided repairs, plumbing failures, water damage, and outdated electrical problems.

The Cost vs Value Report only measures the first one. That's why the headline number matters less than most articles pretend it does.

Average ROI on Kitchen Remodel: The 2025 National Numbers

The average ROI on kitchen remodel projects in 2025 breaks out by scope, and the gap is dramatic. Here is what the 2025 Cost vs Value Report (published by Zonda in September 2025) shows nationally:

1. Minor midrange kitchen remodel: 112.9 percent recouped. Average project cost around $27,000 to $30,000.

2. Major midrange kitchen remodel: approximately 51 percent recouped. Average project cost around $80,000 to $95,000.

3. Major upscale kitchen remodel: approximately 36 percent recouped. Average project cost $150,000 and up.

That is a very large spread. A $28,000 refresh returns more than the entire $150,000 upscale gut renovation does in absolute dollars. This is the single most misunderstood fact in the remodeling market, and it's the reason most homeowners overspend when they're planning for resale.

The 2024 minor kitchen remodel ROI was 96.1 percent. The 2025 number jumped 17 percentage points to 112.9 percent. Part of that jump is real appreciation. Part of it is that Zonda updated the project scope to include cabinet refacing more explicitly, which happens to be one of the highest-value line items in any kitchen. If you're comparing year over year, keep that methodology change in mind.

2025 Cost vs Value Report: Minor Kitchen Remodel ROI Breakdown

Here's what the 2025 Cost vs Value report minor kitchen remodel ROI actually covers, so you can price your own project against it:

1. Cabinet refacing (keep the boxes, replace the doors, drawer fronts, and hardware)

2. New countertops in a mid-tier material (quartz, budget granite, or laminate)

3. New sink and faucet

4. New flooring

5. Painted walls and ceiling

6. New backsplash

7. Upgraded appliances (not necessarily all of them, and not luxury tier)

Notice what's not in there: no moved walls, no relocated plumbing, no new electrical panel, no window enlargement, no custom-built island. Every one of those items pushes you into major remodel territory, where the ROI drops immediately.

The minor kitchen remodel ROI number wins because the underlying costs are constrained and the visible improvements are large. You get almost all of the "new kitchen feeling" for a fraction of the cost, and buyers pay for that feeling almost dollar for dollar.

For a broader look at how these pieces fit into a full project plan, our guide onkitchen remodel design walks through layout, scope, and material decisions in detail.

2025 Cost vs Value Report: Major Kitchen Remodel ROI Breakdown

The 2025 Cost vs Value report major kitchen remodel ROI comes in around 51 percent for midrange projects. That's the honest floor for full renovations. A major remodel typically includes:

1. New semi-custom cabinets (not just refaced)

2. Full countertop replacement in higher-end quartz or stone

3. New island (or expansion of existing one)

4. Updated flooring across the whole kitchen footprint

5. New appliances including refrigerator, range, dishwasher, and often microwave

6. New sink, faucet, disposal

7. Potentially some layout adjustments, moved plumbing or gas lines

8. Updated lighting including recessed cans, pendants, and under-cabinet LEDs

This is a great project to live with. It's not always a great project to spend on if you're selling in the next 24 months. The 49 percent gap between what you spend and what you recoup is the price of daily enjoyment, and that's a legitimate reason to do it. Just be honest with yourself about which category you're in.

Upscale major remodels drop to roughly 36 percent recouped. If your neighborhood comps top out at $700,000 and you build a $250,000 kitchen, no buyer is going to pay you back for that finish level. That's called over-improving to the neighborhood, and it's the single most common ROI mistake we see in higher-end Middle Tennessee homes.

Minor Kitchen Remodel ROI vs. Major: The Gap That Surprises Most Homeowners

Minor kitchen remodel ROI outperforms major kitchen remodel ROI by more than 60 percentage points nationally. Read that again. A $28,000 refresh gives you a better return, in percentage terms, than a $150,000 gut renovation in almost every market Zonda tracks (119 markets, most metros in the U.S.).

That doesn't mean major remodels are wrong. It means they're not primarily a financial decision. If your layout genuinely doesn't work (galley kitchen with no counter space, dead corners, awkward triangle), a major remodel can be worth every dollar in daily use. If your layout is fine but your finishes are dated, a minor remodel usually wins on pure math.

The way we frame it with clients: minor remodels are ROI plays. Major remodels are lifestyle plays. Both can be smart. The mistake is treating them the same way.

Kitchen Remodel ROI Percentage: What Each Component Actually Contributes

Not every dollar of your kitchen remodel returns the same percentage at resale. Some line items punch above their weight. Others barely register. Here's roughly how each component contributes to the overall kitchen remodel ROI percentage, based on what we've watched play out in appraisals and buyer offers:

1. Cabinet refacing or replacement. The single biggest ROI driver in any kitchen. Cabinets are what buyers photograph. Refaced cabinets in a clean color deliver 90 to 100 percent recoup on their own.

2. Countertops. Roughly 75 to 90 percent recoup on midrange quartz. Marble and premium stone drop closer to 50 to 60 percent because most buyers won't pay a premium for the specific slab you chose.

3. Backsplash. Very high ROI relative to cost. A $2,000 tile job can add $2,500 to $3,500 in appraised value.

4. Lighting. Under-cabinet LEDs and updated pendants read as premium to buyers at low cost. Strong ROI, often over 100 percent.

5. Appliances. Mid-tier appliances recoup around 80 percent. Luxury professional-grade appliances (Wolf, Sub-Zero, Miele) usually recoup 30 to 45 percent unless the home is priced for that tier.

6. Flooring. Around 70 to 85 percent recoup on mid-grade wood, LVP, or tile.

7. Layout changes. Highly variable. Removing a wall to open the kitchen to the living room can add substantial value, but the ROI depends on structural cost. New plumbing and electrical relocation usually returns 30 to 50 percent at best.

The pattern is clear: visible finishes recoup well. Behind-the-wall work does not, even when it's necessary. That's why a strategic minor remodel outperforms a gut renovation on pure return.

For inspiration on how these choices translate into finished projects across the region, our gallery ofkitchen remodel before and after photos shows completed Middle Tennessee kitchens across scope levels.

Average ROI Kitchen Remodel 2026: What's Different This Year

Average ROI kitchen remodel 2026 projections are trending slightly higher than 2025 in most markets, but there's a wrinkle worth knowing about. In October 2025, U.S. tariffs on imported kitchen cabinets and vanities were set at 25 percent, with further increases scheduled through 2026. If your builder sources cabinets from imported suppliers, expect material costs to rise 8 to 15 percent above 2024 levels. That doesn't necessarily change your ROI percentage, because home prices tend to absorb some of the cost increase, but it does change your out-of-pocket number.

The kitchen remodel ROI 2026 outlook also depends on a market force that most ROI content ignores: the mortgage rate lock-in effect. Homeowners who financed at 3 to 4 percent between 2020 and 2022 are staying in their homes rather than trading up and taking on a 6.5 to 7 percent mortgage. That means demand for remodeling is high, competition for good contractors is tight, and finished kitchens are selling at a premium when houses do come to market. Total homeowner improvement spending is projected to hit approximately $526 billion in early 2026, an all-time record.

Practical takeaway: kitchen remodel ROI 2026 numbers should look similar to 2025 (roughly 105 to 115 percent for minor midrange projects), but your project costs will likely be higher. Sourcing domestic cabinetry, and locking pricing early in the project, protects your budget better than waiting to see where tariffs settle.

Kitchen Bathroom Remodel ROI 2025: Should You Do Both?

Kitchen bathroom remodel ROI 2025 numbers give a clear split. Midrange bathroom remodels recoup approximately 80 percent nationally. Upscale bathroom remodels drop to 42 percent. Universal design (accessibility-focused) bathroom remodels sit around 61 percent.

Compared side by side:

1. Minor kitchen remodel: 112.9 percent recouped

2. Midrange bathroom remodel: 80 percent recouped

3. Both projects done together: dilutes the kitchen's premium recoup slightly, but improves the "move-in ready" appeal of the whole home

If you're selling in the next 18 months, kitchen alone almost always wins on pure ROI. If you're staying 5+ years, doing both at once often saves you money on shared trades (plumbing, electrical, tile crew mobilization) and gives you a home that shows and functions as one cohesive updated space rather than a patchwork.

Our clients who do both together usually save 10 to 15 percent versus doing them 18 months apart, purely from shared labor efficiencies. That's a real ROI on the sequencing decision, separate from the resale math.

ROI Kitchen Remodel Rental Property: Rent Increase Math for Investors

ROI kitchen remodel rental property rent increase calculations work differently from primary residence math, and this is where a lot of investor content gets it wrong. On a rental, you're not measuring cost recouped at sale (though that matters too). You're measuring monthly cash flow increase over the useful life of the improvement, plus the potential exit valuation lift.

Rough numbers we see hold up on rental kitchen refreshes across Middle Tennessee:

1. A $15,000 to $20,000 rental-grade kitchen refresh (paint or reface cabinets, new counters, new appliances, updated lighting) typically supports a $150 to $300 per month rent increase in the Nashville metro rental market.

2. At $200 per month additional rent, that's $2,400 annually, or roughly 12 to 16 percent annual cash-on-cash return on the improvement.

3. The improvement also raises the property's income multiple at sale (if you sell at a 6 to 7 percent cap rate, an extra $200 per month rents is worth roughly $34,000 to $40,000 in property value).

Add both together and rental kitchen updates often outperform primary residence ROI on a pure dollar-per-dollar basis. The catch: durability matters more than aesthetics in rentals. Choose finishes that survive tenant use. LVP over hardwood. Quartz over marble. Solid maple doors over MDF. Ask your builder specifically about the tenant-durability spec for finishes and hardware.

Where Middle Tennessee Beats the National ROI Average

National ROI figures don't tell you what will happen in Nashville, Franklin, or Brentwood specifically. Middle Tennessee has been one of the strongest home price appreciation markets in the country for the last several years, and updated kitchens outperform their national ROI averages here for three reasons:

1. Population growth. Buyers moving in from higher-cost markets (California, Chicago, Boston) expect updated kitchens as a baseline. Dated kitchens require larger price discounts to sell.

2. Housing inventory constraint. Fewer homes on the market means updated ones stand out. Buyers compete on offers rather than negotiate down on condition.

3. Price band expansion. Median home prices in Franklin, Brentwood, and West Nashville have climbed enough that mid-tier kitchen finishes now match neighborhood expectations rather than exceeding them.

We regularly see minor kitchen remodels in Middle Tennessee recoup 115 to 125 percent, above the national 112.9 percent average. Major kitchen remodels here recoup closer to 55 to 65 percent, above the national 51 percent. The delta isn't massive, but it's real and it compounds over multi-year hold periods.

Upgrades That Hurt Your Kitchen Remodel ROI (Avoid These)

These are the choices we've watched hurt appraisals or turn buyers off during showings:

1. Over-personalized color choices in prominent surfaces. Bold red or dark green cabinets can be beautiful. They also cut your buyer pool. If you're selling within 3 years, keep primary surfaces in warm whites, greys, or navy (which is still selling as a modern classic).

2. Removing an oven and range to install only a cooktop. Some homeowners rarely bake and think this is a great swap. Buyers with families or holiday hosting habits often reject the home outright. Cost: sometimes $10,000 to $20,000 off perceived value.

3. Custom range hoods that dominate the space. A $6,000 plaster hood might be your favorite feature. Buyers just see cost they'll have to accept.

4. Restaurant-grade appliances in a mid-market home. Wolf, Sub-Zero, and Miele in a $500,000 home won't recoup. Same appliances in a $1.5M home might.

5. Trendy hardware that ages fast. Ultra-thin bar pulls in unusual finishes date within 3 years. Stick with proven shapes and warmer metals.

6. Cheap cabinet boxes hidden behind nice doors. Buyers who open a drawer during a showing can tell in one second. If the box wobbles or the drawer glide is cheap, credibility drops for the whole kitchen. Solid box construction with soft-close drawer glides is table stakes now, not an upgrade.

For a deeper look at door styles, hardware options, and cabinet construction that hold up on both use and resale, our overview ofcustom kitchen cabinet door styles walks through what actually matters and what's marketing.

How to Maximize Your Kitchen Remodel ROI in Middle Tennessee

The framework we use with clients when the ROI question comes up:

1. Match finish level to neighborhood. Not below. Not above. If your neighborhood's median list price is $650,000, your kitchen should feel like a $650,000 kitchen. Not a $400,000 one. Not a $1.2M one.

2. Prioritize visible surfaces. Cabinets, counters, backsplash, hardware, lighting. These are what buyers photograph and remember. Spend here first.

3. Skip layout changes unless they're clearly broken. Moving plumbing costs $3,000 to $8,000 and rarely returns that at resale. Only move it if the current layout genuinely doesn't work.

4. Choose timeless over trendy for the big surfaces. Navy, warm white, or soft greige cabinets in a shaker profile. White quartz with subtle veining. These read as intentional to buyers 8 years from now, not just today.

5. Get quality cabinet construction even if you cut back on paint color complexity. Solid maple doors, dovetail drawers, soft-close hinges. These add real value that buyers can feel in a two-minute walkthrough.

6. Ask for a written finish spec. Before signing anything, get a sheet listing every material, brand, model, and finish level. This is how you know what you're actually paying for and what your ROI will actually be built on.

For a broader look at cabinet colors, styles, and choices that hold up on both use and resale, our full guide onkitchen cabinet remodel ideas covers each color family and door style side by side.

Ready to Plan Your ROI-Smart Kitchen Remodel?

At SH Design Woodcraft, we design and build kitchens across Middle Tennessee, and every project we take on starts with a scope conversation grounded in your actual ROI math. Are you selling in 18 months, staying 10 years, or somewhere in between? That answer drives the plan. We'll build in the visible-surface wins that drive resale value, hold back where the return isn't there, and make sure you get a kitchen that pays back on both fronts: the day you use it and the day you list it.

Explore our services across the region:kitchen remodeling in Nashville, TN,kitchen remodeling in Franklin, TN,kitchen remodeling in Brentwood, TN,kitchen remodeling in Spring Hill, TN,kitchen remodeling in Murfreesboro, TN,kitchen remodeling in Thompson's Station, TN, andkitchen remodeling in Columbia, TN. If you'd like to start with the cabinet decision (which is where the ROI story really begins), ourcustom cabinet makers in Nashville team can walk you through construction, wood species, and finish options in your own home.

Reach out for a design consultation and we'll bring samples, run the ROI math against your actual home, and give you a scope that matches your goals.