I cannot recall a real estate add that listed a pantry as a feature,
even for homes that I know have pantries. Its not uncommon around here
to convert a pantry into a half-bath, as many of these older homes are
multi-story with no bath on the main floor. I think life styles have
changed and people no longer buy the large quantities of food that they
used to, so we no longer need pantries. Even modern kitchens lack what
I feel is sufficient storage space, and I think that is because people
want preparation or eating space, and it is so common in many places to
go out to dinner, or at least order in. My son and his wife live in
California and in all the visits we have made there, she has cooked a
meal only once; we almost always go out.

So I would give a lot of thought as to just what you would need a pantry
for, before spending the money on tearing out a half-bath, and almost
certainly reducing your equity in your home.

On the other hand, if you call it a wine cellar, that sounds like an
excellent idea.

TC wrote:
My wife came up with a suggestion about our home which I like. However,
I would like some input concerning value of our home. We have a 1700sq
ft home with two full baths and one 1/2 bath that is literally 3 steps
from our open kitchen - just across the hall. Our kitchen is fairly
small and has limited space so my wife suggested we convert the half
bath into a pantry. In terms of flow in the kitchen, it's perfect. My
question: would this lower the value of our home?

We would likely just cap all lines so that a new owner could convert
the bath back if they wanted it.