< Go Back to the iBuyer Blog

How Much Does Adding a Bathroom Increase Home Value

Posted on Share:

newly added bathroom

Figure out the right time to Buy or Sell with iBuyer.com Get Started Get A Free Home Valuation

Adding a new bathroom can make your home feel more spacious and give you significantly more privacy. A cluttered, overcrowded bathroom can negatively impact your life by:

  • Adding unnecessary, unwanted stress to your life
  • Making your home feel much smaller than it actually is
  • Preventing guests from feeling as comfortable as possible in your home

Benefits of adding a bathroom

Adding an extra bathroom can improve your life and make guests more comfortable as well. Not to mention, there are notable financial benefits to adding an extra bathroom. While adding an extra bathroom costs money, it also increases your home value, and if the bathroom is built well, then it can pay for itself with money left over. Read on to learn more about the benefits and aspects to consider before building an extra bathroom in your home.

How adding a bathroom can increase your home’s value

An average bathroom addition allows you to increase the value of your home anywhere from about $20,000 to $50,000 which is well over half of what it usually costs to build an extra bathroom.

Discover your home’s worth online for free in minutes!

The costs associated with adding a new bathroom

The cost of adding a bathroom, both in terms of money and space, does not have to be incredibly steep. There is a lot of variation depending on what type of bathroom you are adding. Here are the average costs associated with building different types of bathrooms.

  • $47,000 for an average, mid-range bathroom
  • $87,000 for a nicer, upscale bathroom
  • $15,000 for a smaller half-bath
  • $5,000-$10,000 for a powder room with no shower

With all of that being said, the average cost of adding a medium-sized extra bathroom to a home is generally between $40,000 and $50,000, and depends a lot on your personal choices and style. Choosing more expensive materials or deciding to build a larger bathroom is obviously more costly than alternatives.

The cost of space associated with adding a bathroom is also not huge, as a space as small as 3 x 5 feet could be converted into a half bath, and a full bathroom including a bath and shower only requires about 30 square feet. The average bathroom does not have to be particularly large, and a space about 6 x 8 feet would suffice for a proper bathroom.

Much of the cost can be made up for in terms of home value when it comes time to sell it. Notably, the increase in home value can make up for up to about 70% of the costs associated with building the bathroom in the first place. If you choose to add a powder room, or a half bath, that can increase overall home value by about 10%. This is a significant increase, especially considering the costs for adding a powder room are much less than the costs of adding a full bathroom.

What to consider before adding a bathroom

Adding a bathroom to your home can be a great decision for you, both in terms of your comfort and financial value. However, it is important to put thought into the project before embarking on a home-improvement project. In order to maximize your home value and comfort as well as reduce costs, factors such as size, location and quality need to be taken into account.

In terms of size, the question of whether to build a half bath or full bath should come first. Determining what kind of space you have to work with is important. While bathrooms do not require a large amount of space, using space efficiently can make a huge difference in building a navigable, useful bathroom that does not feel cramped. Putting extra effort into the layout of the sink, toilet and shower can save you money when it comes to building and plumbing.

Another point of consideration is the number of bathrooms you already have in your home. If you wind up having significantly more bathrooms than bedrooms, the addition of each subsequent bathroom will increase the value of your home by less, making the investment less worth your while. 

Where to place your bathroom in your home

Determining where to build your bathroom is also crucial. A poorly placed bathroom not only causes you inconvenience, but it makes your home less valuable, costing you financially. Using an existing, unused space in your home can help cut costs.

Closets, especially walk-in closets, can easily be converted into bathrooms. A storage space at the end of a hallway makes for a great bathroom or powder room for guests. You can also divide a large bathroom into two smaller bathrooms relatively easily, which can give you more privacy and, likewise, increase the value of your home.

Partitioning space off from a larger bedroom, such as the master bedroom, can also make space for a private bathroom. Adding a bathroom to a bedroom can allow more privacy, which increases home value as well as your quality of life. 

Features to include in your bathroom

The amount that your bathroom increases your home value will depend significantly on the features you choose to include in your newly-built bathroom. Stone sink countertops are usually ideal for bathrooms, and standard chrome faucets work for an average bathroom.
For a Nicer Bathrooms:

  • Consider investing in a double-sink with custom faucet and handles
  • Match the floor and the wall tile to ensure the design looks cohesive and upscale
  • Include a tub as well as a shower to elevate the bathroom

For More Modest Bathrooms:

  • Choose more affordable materials such as fiberglass for tubs and showers
  • Spend less on tile
  • Be open to alternatives to full bathrooms that may be more space-efficient

Remodeling your bathroom

Of course, you will not need to take certain factors, such as location, into account if you elect to remodel an existing bathroom in your home instead of building a new one. Remodeling can help you increase home value while also reducing the costs normally associated with building a new bathroom.

While building a new bathroom can cost upwards of $50,000, remodeling can cost under $10,000 while still increasing the value of your home. Remodeling can require a lot of work and planning from start to finish, but putting in the work to plan and select affordable, aesthetically-pleasing materials can significantly reduce costs.

Remodeling usually requires replacing tile, sinks, counters, showers, shower doors, and can even require reworking plumbing and wiring to accommodate new sinks and electrical appliances. While some of these changes might require the help of an expert, with sufficient research, many people are able to accomplish an at-home bathroom remodel on their own.

The nice part about remodeling yourself is that you can design a bathroom exactly to your tastes, whether your tastes include a double-sink, rain shower or custom cabinetry. Overall, remodeling is a great alternative to building a new bathroom.

Powder rooms vs full bathrooms

Powder rooms

  • Require much less space than full bathrooms
  • Do not include a shower or bath normally included in full bathrooms
  • Are ideal on the main floor near the living room, as opposed to in bedrooms
  • Are typically built and used for the comfort of guests
  • Cost significantly less money than traditional bathrooms due to reduced building materials and plumbing
  • May take up about 15 square feet of space, meaning even small closets can be converted into powder rooms

Full bathrooms

  • Include a shower and sometimes a full bath, depending on the size
  • Are more useful for day-to-day use, rather than guest use, given their higher function
  • Tend to be located off of a bedroom for private or semi-private use

Making up for remodeling or building costs

As mentioned previously, the cost of remodeling and building can be made up for, in part, by the increase in the value of your home. Making smart decisions when it comes to building materials, location and which features to include can allow you to reduce your costs while maximizing the usage and increase and value you get from your remodeled or newly built bathroom. Overall, building or remodeling a bathroom can lead to a 10% to 20% increase in the value of your home. 

How we can help

Use our valuation page to calculate the value of your home, and you can receive a no-obligation cash offer for your home. You can use the tips and information about remodeling and building a new bathroom to maximize the value of your home.

Adding a bathroom is an efficient and effective way to increase the value of your home while also adding to your own quality of life. We strive to help you make educated, well-informed and well-thought out decisions about your own home. 

Interested in your home’s current market value? Receive a free online home value estimate!

Find out what your home is worth in minutes.