Is Interior Wall Panelling Worth the Investment? A Cost and ROI Breakdown

Every home renovation is an investment, and the key to making smart choices lies in balancing cost vs. value.

Homeowners also want upgrades that can upgrade style while enhancing functionality and long-term savings. Interior wall panelling stands out for its ability to enhance aesthetics, improve insulation, and add resale value.

With options ranging from paintable wall panels to high-end wood finishes, paneling provides an easy way to upgrade a home while addressing practical concerns like energy efficiency and acoustics.

But is it worth the investment?

Today, we'll break down the cost, benefits, and return on investment of interior wall panelling to help you decide if this upgrade is for you! 

Dual Benefits for Better ROI

While solely aesthetic upgrades can make a difference to a home's value (both to you, the current owner and future buyers), wall upgrades that offer both aesthetic and functional benefits can further increase the benefits of the upgrade.

These are some of the best functional benefits that can come from some interior wall panelling projects.

Hiding wall imperfections

Walls with dents, cracks, or uneven surfaces can make a space look outdated. Repairing drywall can also be costly and time-consuming, making covering damaged walls with interior wall panelling an excellent alternative.

Rather than spending thousands on refinishing walls, homeowners can install panelling over existing walls to create a polished and seamless look with minimal effort.

Improving acoustics

In large and open spaces, sound often bounces off hard surfaces, creating an echo effect that can be disruptive in home offices, media rooms, and shared living areas.

To counteract this, many homeowners look into acoustic panelling, to help absorb sound and enhance room acoustics.

The downside is that many cheap acoustic panelling options are made with foam and generally unsightly, detracting from the “feel” of a space and turning off potential future buyers.

For those who are comfortable with a higher upfront cost, textured wood acoustic panelling is a popular choice that offers both aesthetic and acoustic upgrades, and in turn increasing the ROI of the project.

Enhancing Insulation

Interior wall paneling can play a significant role in improving a home's energy efficiency.

By adding an extra thermal barrier, some wall panelling can help regulate indoor temperatures, reducing heat loss in the winter and keeping interiors cooler in the summer.

This added layer of insulation creates a more comfortable living environment while also lowering energy costs.

According to the U.S. Department of Energy better insulation can lead to 5 to 20 percent savings on annual energy bills, depending on factors like climate, home size, and the materials used.

Real-Life Example

Lisa from Seattle, WA, transformed their living space with fluted paintable panels, enhancing both aesthetic design and functionality.

To achieve this, they installed slatted wall panels around their fireplace to add some texture while also boosting the thermal properties of their home.

According to L.W., the panels were easy to install, with their contractor finding them simple to work with. As seen in the provided image, the clean panel lines add more depth and class which makes the space feel cozier and more refined.

If you're thinking about giving your home a little upgrade, wall paneling is an easy way to add style and function. Whether you’re using it to make a fireplace pop or to bring some extra character to a room, it’s a simple change that makes a big impact.

And one that pays off in the long run!

Selling Soon? Go For Timeless Over Trendy

Wall panelling can significantly impact a home’s resale value, both positively and negatively. If you’ve ever toured a home renovated in the 70’s, you’ll know that the cheap laminate panelling of the era doesn’t exactly inspire any bidding wars.

That being said, genuine wood panelling of the 60s, when installed in a classic mid-century home, fits the era and has a timeless effect, which most buyers love. 

With this in mind, the best way to guarantee potential buyers will love the wall panelling in your home is to ensure it matches the era and architectural style of the home, so take this into account when deciding on what panelling you want to add to your home before selling.

For example, extremely modern geometric panelling in a classic, Victorian home won’t add any value. But authentic walnut wall panelling in a mid-century home definitely will!

Wall panelling of the era that matches the rest of the home will increase cohesiveness and fit in seamlessly, boosting value. See below for some examples.

Historic Homes: Raised Panel Wainscoting for Classic Elegance

Authenticity is key to historic homes. Raised panel wainscoting is a timeless choice that preserves the refined character of older properties.

Originally used in 18th and 19th-century homes, this type of interior wall panelling makes walls more intricate and protects them from daily wear.

Often seen in Colonial, Georgian, and Victorian-style homes, raised panel wainscoting pairs beautifully with high ceilings, decorative molding, and traditional furnishings.

Homeowners who want to maintain historical accuracy while modernizing their space can also paint the panels in soft neutrals for a fresh yet classic look.

Mid-Century Modern Homes: Walnut Wall Panelling for a Classic Aesthetic

Mid-century homes, known for their clean lines and minimalist appeal, benefit from walnut wall panelling, which adds elegance and life.

One option that stands out is the wide plank walnut panelling, a premium selection with a rich texture that enhances the sleek and understated look of modern interiors.

These panels create an inviting atmosphere without overpowering the space, making them a great addition to living rooms, dining areas, or home offices.

Farmhouse-Inspired Homes: Shiplap for Rustic Charm

Shiplap or V-Groove Panelling panelling is the perfect choice for farmhouse-style homes as they feature a combination of rustic and contemporary design. Known for its clean and minimal planks, shiplap or v-groove adds a cozy and lived-in feel while maintaining a clean and modern aesthetic.

When choosing the color, note that white or light-colored v-groove  keeps spaces feeling airy and open, while darker stains add richness and depth.

Modern Scandinavian Homes: White Oak Wood Panelling

White Oak wood panelling is a great option for modern homes as its lighter tone and simple grain patterns provide a great canvas to add your own persona touches to in the rest of the space. 

Unlike solid wood panels, which can also be great in Scandinavian and/or Japanese-inspired spaces, slatted designs allow for airflow and sound diffusion, which makes them ideal for home offices, media rooms, or open-concept living areas.

Their vertical lines also create an illusion of height, making rooms appear taller and more spacious.

Wood slat panels come in various finishes, including natural oak, walnut, and painted options, offering flexibility in design. They pair well with Scandinavian, Japandi, and contemporary home styles, adding a sleek yet inviting look.

Choosing the Right Paneling for Your Home

The best paneling choice depends on a home’s architecture, personal style, and functional needs. Homeowners should also consider the durability, maintenance, and long-term appeal of their selection.

Whether it’s the classic elegance of raised panel wainscoting, the sleek sophistication of walnut panels, the cozy charm of shiplap, or the modern appeal of wood slat wall panels, selecting the right option can always enhance a home’s style and boost its value

When You Plan to Sell vs. When You Plan to Stay

If Selling Soon

If you’re looking to sell soon, your design updates should focus on low-key, neutral styles that enhance a home’s marketability and suit the home’s style, as discussed above. Overly bold, unique, or out-of-date designs can limit buyer interest.

If Staying for Years

For those planning to stay long-term, personal preference matters more. The projects you choose to take on should reflect your style and personality, so if you want to add some panelling and it suits the space, don't worry too much about what potential buyers 5, 10, 20 years down the line will think. Life is too short.

Having a home you love and feel comfortable in has real, tangible benefits to well-being and life quality. You don’t need to worry about maximizing financial ROI if you’re going to be in the home for a long time.

It’s your home, make it yours! 

Psychological Benefits

Impact on Comfort, Focus, and Relaxation

A well-designed home enhances quality of life by creating a sense of comfort and belonging for you and your family on a day-to-day basis, and the value of that can't be overstated!

Thoughtful interior choices like interior that fit your personality and the feeling of your home creates a more inviting and comfortable space, making daily living more enjoyable.

A Well-Designed Space Reduces Stress and Boosts Enjoyment

Natural wood panels create a warm, grounded feel, while textured panels add depth and dimension.

A good example of this are acoustic panels that help reduce noise distractions, making shared living spaces more peaceful. For a flexible and stylish option, paintable wall panels give an easy way to refresh a home’s look without a full remodel.

Weighing Costs Against Benefits

Assessing the Financial Side of Paneling

Cost estimates

DIY installations typically cost between $1,500 and $3,000, while professional installations range from $3,000 to $4,500, depending on material and square footage.

Material Breakdown

MDF panels cost between $1 to $4 per square foot, while paintable wall panels range from $3 to $8 per square foot. Acoustic wood slat panels fall in the $7 to $15 per square foot range, while luxury solid hardwood panels cost $15 to $40 per square foot.

Long-term Savings

Energy-efficient wall panels can improve insulation by up to 10 percent, leading to $200 to $500 in annual energy savings. Paint typically requires a refresh every 10 years, costing $3,000 to $6,000, whereas wood paneling lasts over 20 years with minimal maintenance.

Return on Investment (ROI)

The 2% to 5% Home Value Increase Estimate

According to real estate experts, homes with interior wall panelling can experience a 2% to 5% increase in property value. For a home valued at $500,000, this translates to an additional $10,000 to $25,000 in resale value.

A study from Zillow suggests that homes featuring custom wall finishes, including paintable wall panels, tend to stand out in competitive markets.

This faster sale time is particularly beneficial for homeowners looking to sell quickly while maximizing their return.

ROI Comparisons

Different home improvements offer varying returns on investment. Here’s how interior wall panelling compares to other common renovations:

Sources:

• Lee Company

• Realtor.com

While fresh paint offers a higher ROI, it also requires frequent upkeep. Paintable wall panels provide a more durable alternative, requiring fewer updates while still allowing homeowners to change colors if needed.

Where Wall Paneling Works Best in the Home

Adding wall paneling enhances both style and functionality in different areas of a home. Here are the best places to install it for maximum impact.

Living Rooms

Wall panels create a stylish, inviting atmosphere while improving acoustics in large or open spaces. Ideal placements include behind sofas, fireplaces, or entertainment centers. Recommended materials include wood slat panels, shiplap, or V-groove paneling.

Bedrooms

Wall paneling adds class and elegance which makes bedrooms feel cozier. It also serves as a stylish alternative to headboards while reducing noise from adjacent rooms. Best placements for sleek wall panels include behind the bed, full accent walls, or partial feature paneling.

Home Offices

Acoustic wall panelling improves soundproofing for virtual meetings and create a polished background for video calls. 

Go for a lower-cost option like foam panelling if you just need a quick functional fix that you're going to remove before selling anyway. If you want something that adds to your space aesthetically, go for more premium options that will also enhance the value of your home long-term.

Hallways and Entryways

Narrow spaces benefit from paneling by adding depth and preventing scuffs in high-traffic areas. Vertical slats can make ceilings appear taller, while wainscoting, vertical wood slat panels, or painted paneling are great options for durability and style.

Conclusion

Choosing the right home upgrades requires a balance between functionality, aesthetics, and long-term value.

Investing in interior wall panelling does more than enhance a home's appearance, it also improves insulation, minimizes noise, and adds to resale value.

Unlike standard paint, paintable wall panels offer a flexible, long-lasting solution that allows homeowners to refresh their interiors without major renovations.

For those looking to sell, interior wall panelling creates a polished, high-end look that attracts buyers. Homeowners planning to stay long-term can enjoy the durability, energy efficiency, and low maintenance that wall panelling provides.

Whether it's the versatility of paintable wall panels or the sophisticated charm of wood slat panels, choosing the right style can elevate both the comfort and market appeal of any space.