House additions can increase property value, make the home more liveable and expand the usable space. Whether you dream of a chef's kitchen or additional bedrooms for children or grandchildren, home additions can add value and comfort to your property. One of the most popular recent additions is a tiny home or other detached accessory dwelling unit, allowing owners to rent the property for additional income. Ready to add value to your home this year? Read on for house addition ideas and popular upgrades.
10 Home Addition Ideas
While home additions can increase property value, you want to avoid over-customizing the home or significantly renovating beyond the level of other comparable properties in the area. Doing so is unlikely to increase property value and may decrease property value. Keeping those guidelines in mind, the home addition ideas below can enhance the value of your home or expand usable space. Read on for 10 home addition ideas.
Room Addition or Bump Out
An additional room or bump out can increase the property's square footage, generally increasing value. Whether you use this as an additional bedroom, a mudroom or to expand your living space, a room addition or bump out is one of the most popular ways to make a smaller house feel more spacious. Use this option to accommodate a growing family, create a home office or expand your living room or kitchen.
A bump out could be as little as 2 feet or as much as 30 feet, while a room addition varies by purpose and property size. The average price of a 12×12 bedroom, once the foundation and roofing are added, is around $100 to $150 per square foot or $12,000 to $22,000 total.
Second-Story Addition
A second-story addition allows you to increase or double your living space without adding a new foundation. This is one of the most cost-effective additions per square foot, although you'll have to factor in new roofing. You can also consider converting an attic for a more cost-effective solution. Consider adding a second story above the garage for a separate living space or possible rental unit or guest space.
Dormer Addition
A dormer addition extends the liveable space on the home's second story. It is a window that extends outward from the main roof slope, expanding the space with sufficient head clearance or where you can place a bed. A dormer typically has a different pitch angle or ridge than the main roof, further expanding the space. If you want a bigger bedroom, a new guest space or to make your attic space into a home office, dormers can make the space feel larger while bringing in more light.
Garage Conversion
A garage conversion is another low-cost solution to expand liveable space. While this means your car, tools and toys must be stored elsewhere, you'll have an already-enclosed space that is easier to convert into a liveable space. An average two-car garage is 18x20 feet or around 360 square feet. That's enough for a cozy studio apartment, an extra kids' bedroom, a comfortable office space or a designer laundry room.
The price for converting a garage ranges from $5,900 to $22,000. As an average, you can consider a cost of $14,000 or as little as $50 per square foot.
Tiny House or Detached Accessory Dwelling Unit (DADU)
Tiny houses have exploded in popularity in recent years, while a detached accessory dwelling unit (DADU) is a smart way to bring in extra rental income or make space for family or guests. They're a popular solution for multigeneration housing or to make more money. Whether you need to make space for aging parents or grown children or plan to move there yourself, a DADU can be a simple, comfortable housing solution.
You can rent out the DADU on Airbnb or use it as a long-term rental. Some homeowners will also move into the DADU themselves and rent their main home as a long-term or vacation rental for even more income.
Depending on the size of the DADU or tiny house, construction style and finish level, you can expect to pay anywhere from $40,000 to $150,000 or more.
Kitchen Addition
Kitchens are one of the renovations that can pay off when you sell the property. This can include a kitchen bump out, new cabinets and countertops or other additions to improve the layout and quality of the kitchen. Carefully consider the quality of comparable kitchens and the renovations relative to the property value to avoid going overboard on the kitchen.
Home Office Addition
With an expanding online workforce, home office additions are more popular than ever. Whether you make a bump out, convert an attic or garage or convert a bedroom, adding a home office can even help you save a little on taxes if you take itemized deductions.
The cost of a home office addition varies widely by the level of construction. Converting a bedroom to a home office could cost under $1,000 for a desk and other basic furniture and paint. If you build a new room, renovate an attic or garage or build a separate home office DADU, you could pay $12,000 to $50,000 or more.
Bathroom Addition
Americans have increased the desirable number of bathrooms over the decades. While one bathroom for a family was considered more than enough 50 years ago, more and more families want one bathroom per bedroom to increase everyone's comfort. Modern homes are often designed to have a bathroom for each bedroom plus a half bath near the entry.
While a bathroom addition can seem like a low-cost addition, expenses can add up quickly, especially if you need to extend plumbing. You can expect to pay between $18,000 and $47,000 or more to add a bathroom. Proximity of plumbing, bathroom size, materials and fixtures can all affect the final cost.
If you're dreaming of upgrading a master bath to a spalike setting with marble floors and walls, granite countertops, high-end fixtures and a walk-in closet, you could end up spending closer to $80,000. Fortunately, bathrooms generally add more than their costs to a home's resale value, so you should be able to recoup the costs if you decide to sell.
Sunroom Addition
A sunroom allows you to feel connected to nature while enjoying your home's comfort and protection from rain, snow, wind or bugs. While sunrooms aren't typically connected to the home's existing HVAC system, you can add a heater/air conditioner unit, fans or a wood stove to turn the room into a low-cost four-season room.
Sunrooms range from fully glassed spaces to bump-outs with larger windows plus a skylight. These bright spaces are often off the kitchen or back size of the house. Sunrooms are one of the more affordable house additions.
Sunroom costs range from $100 to $350 per square foot. You can expect to pay between $15,000 and $35,000 for a basic sunroom. Adding temperature controls can increase the costs to $80,000 or more.
Mudroom Addition
Thanks to Instagram-perfect homes, the humble mudroom has grown in popularity. These additions store coats, shoes, bags, keys and more. By creating an attractive and practical space to store everything as you come or go from the home, you may be able to keep clutter to a minimum while getting out the door more easily in the mornings.
Mudroom addition costs depend on the level of renovation. Adding storage to an existing entryway or closet could cost $4,000 to $10,000 while adding a mudroom extension to the home's entrance could cost between $12,000 to $20,000 or more.
How to Choose the Type of Home Addition
When choosing home additions, consider the existing layout and design of the home and its functionality. For example, a home with narrow hallways or small, cramped bedrooms could benefit from opening up spaces, a bump out or adding a room. A well-designed home with an unused attic could present an opportunity to increase square footage and usable space. Likewise, adding a bathroom, if you don't have at least one per bedroom, almost always offers a good return on investment.
To choose the type of home addition, consider:
- What space do you use most?
- Where do you need more space?
- What space is unused that could become more functional?
- What is your budget?
- How will this renovation affect your property's value?
- How does the renovation compare to neighboring properties?
- Who will the renovation benefit?
How Much Does a House Addition Cost?
The cost of a house addition varies based on the level of construction, the type of addition, the quality of materials and whether you choose to do it yourself (DIY) or hire a professional contractor. For example, a DIY mudroom upgrade could cost as little as $2,000, while adding a second floor to a home could cost over $100,000.
When you hire a contractor, you'll spend significantly more than buying materials and doing it yourself. But you'll also benefit from their expertise, professionalism and speed to do the job more quickly.
How to Finance a House Addition
The most popular ways to fund a home addition are to use savings, get a loan or a home equity line of credit (HELOC). A personal loan, home renovation loan or HELOC can all offer lower interest rates, long-term repayment options and access to funds for your home addition when needed. Find some of the best loans for fixer-uppers here. You can also check out government home repair programs for extra help securing a home loan or financing.
Should You Make a House Addition?
Not all home additions will add resale value to your property. Adding a bathroom, finishing an attic or upgrading the kitchen are tried-and-true upgrades with strong returns. In addition to property value, you should consider the home's functionality for your family and possible future residents. Some home additions expand liveable space, improve functionality or convert the property into a multigenerational home. With thoughtful planning with an experienced contractor and careful market research, you can select home additions that improve your family's comfort and add value to your home.
Frequently Asked Questions
Do I need a permit for a house addition?
Whether you need a permit depends on the type of addition. It’s essential to check with local authorities to ensure you have the proper building permits for your home addition.
Will a house addition increase the value of my home?
A home addition could increase the value of your home. Speak with an experienced contractor or real estate agent to understand the local market and the potential impact of renovations on your property value.
Can I live in my home during a house addition?
Whether you can live in your home during a renovation depends on the type of renovation. Many families live in their homes during a renovation. However, you may have to move out for major renovations that involve tearing out the kitchen and flooring or opening a wall of the home.
About Alison Plaut
Alison Plaut is a personal finance and investing writer with a sustainable MBA, passionate about helping people learn more about wealth building and responsible debt for financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgages, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she regularly contributes to Benzinga.