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Is Closet Renovation Worth The Investment?



There is a cult-like following for closet organization, whether it’s a simple reorganization with storage containers or a full renovation of a closet.


Closets became a full feature of a home in the 1980s when Closets by Design established the market. Since the age of the internet, closet pictures have dominated Pinterest, with Marie Kondo and other companies promoting systems of organization that require a well-laid out closet. Celebrity closets are showcased in magazines and talked about on home renovation shows.




But is a closet renovation worth the additional cost for an investment property?


The Cost of a Closet Renovation

There are different levels of closet renovation. The budget can span from hundreds of dollars to millions of dollars, depending on the features you plan to use.


Lower Cost Closet Renovation

At the lower end of the spectrum, you can reorganize your closet using wire shelving and bookcases that you can find at Home Depot, IKEA, The Container Store, or Target. Keeping the closet neat is more challenging, but for basic staging purposes and for small closets, the effect is definitely an upgrade over a messy closet.


Approximate cost: $300 - $1500

Installation costs: DIY




Mid-Level Closet Renovation

Taking the next step means getting professional help. Many construction companies and even stores that offer the same elements to build your own shelving system also have professional designers and installation experts to build the ideal closet.


While the price tag may be higher, this is a true investment. It’s easier to keep clean and neat and sells well.


“The Closet Works says you should expect a return on investment of around 56% of the purchase and installation costs, equivalent to a home value increase of roughly $2,000.” (homeserve.com)


These closets are the minimum that is expected in high-end homes and are perfect for a basic walk-in closet or a reach-in closet.




Approximate cost: $1000 - $6000

Installation: Professional


High-Level Closet Renovation

When you need to build out additional space for a closet or dressing room, you’re looking at the high-end closet pinned to every home dream board on Pinterest!


These closets sell houses and provide home buyers (or renters) with a vision of an organized, luxury lifestyle. Always walk-in, and often attached to the bathroom, the sky’s the limit when it comes to cost.


For staging a closet like this for a home sale, or rental, consider using a color scheme, and use just as many clothes as it takes to let the closet feel big without overwhelming the space.




Approximate cost: $5,000 and up.

Installation: Professional installation as well as construction costs.


Can the closet renovation bring up the cost of a home?

Yes, without a doubt. As you consider whether or not to take on the project, be sure to manage your budget. For expert help, reach out to the Regalway Homes team. We can tell you how much you should budget to ensure that you get the return on your investment.



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