How Much Value Does a Laundry Room Add to Your Home?

By Melanie Dawn

March 14, 2026

Laundry is one of those necessary chores that most people would prefer not to do. If you have a large family, it can feel like an endless cycle of washing, drying, sorting and putting away loads of clothes. Because we spend a significant amount of time performing these tasks, laundry rooms tend to be one of the most important rooms in the home. In newer homes, laundry rooms are bright, functional and organized spaces that take the drudgery out of a dreaded chore. But does a laundry room increase a home’s value?

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If you are considering renovating or putting your home on the market, you might be thinking about your current setup. If you have a cramped closet or a dark basement used for washing clothes, you may be trying to justify the cost of an upgrade. Updating your kitchen or bathroom can add significant value to your property, but what about laundry rooms? Before committing to an overhaul, it’s important to understand how much it costs.

How Much Value Does a Laundry Room Add?

Adding square footage to your home can help you increase your home's asking price. The exact amount varies depending on where you live, what type of space you add and the cost of the remodel.

The average cost per square foot for a basic home in the United States is $180 to $280 (CAD 245 to CAD 381). For a custom build, the cost is between $280 and $450 per square foot (CAD 381 and CAD 613). A medium-sized laundry room measures approximately 6 by 9 feet for a total of 54 square feet. Based on these costs, a medium-sized laundry room would add approximately $10,260 to $33,102 (CAD 13,966 to CAD 45,058) to the overall cost of a home.

To add value to your home, it’s important to examine current market standards where you live. For example, if every home in your neighborhood has a second-floor laundry room and yours remains unfinished, it can hurt the overall value of your property. A finished laundry space signals to potential buyers the home is modern, efficient and designed for busy lifestyles.

How Important Is a Laundry Room for Resale?

According to real estate experts, approximately 83% of home buyers consider a dedicated laundry room a necessity, so it would make sense that an addition would increase the final cost. Information from the National Association of Home Builders (NAHB) “What Home Buyers Really Want” report also shows that a separate laundry room constantly ranks as one of the top features home buyers look for when viewing properties.When a potential buyer walks into a home, they run a checklist of projects to get the home up to standards. A washer and dryer tucked into a small closet or a corner in the kitchen is expensive to move. Having a bright, clean and organized laundry room makes it easier to visualize daily life in the home, even more so than with a living room.

What Is the Return on Investment for Adding or Remodeling a Laundry Room?

Calculating the return on investment (ROI) for adding or remodeling a laundry room depends on what you have done. If you’re painting walls and putting up shelves, the ROI won’t be as much as if you’re moving plumbing lines and knocking down walls. A mid-range laundry room remodeling project yields between 60 to 70% ROI. This means for every $1,000 (CAD 1,361) you spend, you can expect to add approximately $670 to $780 (CAD 912 to CAD 1,062) to the home’s value.While this type of remodel doesn’t deliver a dollar-for-dollar return and you won’t break even on cost, it’s still considered a worthwhile investment compared to other home improvement projects, such as adding a sunroom, which has a lower return.

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What Are Some Tips for Sprucing up Your Laundry Room Before Selling?

Does a laundry room increase a home’s value when it’s time to sell? Absolutely. However, if you have a small space, you can increase the appeal with cost-effective upgrades.

Upgrade the Lighting

The average cost to replace existing lighting fixtures is between $80 and $350 (CAD 109 and CAD 476). Look for bright, cool-toned LED fixtures that create an inviting work area. If you have cabinets, install inexpensive under-cabinet lighting to help make small rooms feel bigger.

Consider New Appliances

Your washing machine and dryer are the visual anchors of the room. Matching modern appliances cost between $1,000 and $2,300 (CAD 1,361 and CAD 3,131) make a room look high-end.

Create a Folding Station

For front-loading washing machines, install a counter over the top to serve as an instant folding station. This helps give the room a custom look and takes advantage of existing space. For top-loading machines, consider a hinged counter that drops down when you need it.

Maximize Vertical Storage

Take advantage of vertical storage in small spaces by installing wall-mounted shelves to hide the clutter of detergent and fabric softener. A fold-away ironing board is another space saver that makes the space feel more efficient.

Add a New Coat of Paint

It costs between $1 and $3 (CAD 1.36 and CAD 4.08) per square foot to paint a room. Choose colors like white, soft gray and light blue, which feel clean.

Organize the Space

Exposed dryer vents and plumbing pipes make a room look and feel unkempt. If you can’t put them behind drywall, consider building a cabinet to cover them. For necessities, fill clear jars with detergent pods to remove clutter.

All CAD conversions are based on the exchange rate on the date of publication.

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