If you need more living space, but don’t have the property (or the budget) to put an addition on your home, it may be time to take a closer look at your garage. Whether it’s attached or free-standing, a garage conversion can be a relatively quick and affordable way to expand your current home.
The cost and amount of work involved in turning your garage into usable living space will depend on its size, current condition, the purpose of the remodel, and where you live. Read on for a closer look at what’s involved in a garage conversion, including design ideas and estimated costs.
Key Points
• Converting a garage increases living space and home value.
• Key steps include obtaining permits, planning storage, and ensuring utilities and insulation.
• Functional areas range from bedrooms to home offices and in-law suites.
• Cost estimates vary: bedroom conversion $12,000, master bedroom with bath $25,000, in-law suite $20,000 to $50,000.
• Financing options include home improvement loans and unsecured personal loans with fixed interest rates.
Do Garage Conversions Add Value?
You may define value in a number of ways, but one of the most important considerations in converting a garage is what value it might add to your life. If you have a big family, you might want more space — perhaps a child-free zone where you can enjoy some quiet time. Or, you may want to convert a garage into a playroom where your children can keep their toys, decluttering your main house.
If you frequently have house guests, building a garage apartment or in-law suite can function as extra living space for friends and family to use when they’re in town.
A garage conversion can also add monetary value to your home, since you’re adding to the total livable square footage of your home. You can generally expect to get about 80% of what you spend on a garage conversion back when you sell your home (known as your return on investment, or ROI). To get an idea of the costs involved with a garage renovation, you may want to use a free online home renovation cost calculator.
Adding Living Space to a Converted Garage
How you use a converted garage space depends on whether it’s attached to your house or a freestanding structure. If the garage is attached, you could create a room that becomes part of your home. This might be a recreation room, a workout room, a family room, a home theater, an extra bedroom, or a multipurpose room.
If your attached garage is connected to your kitchen, you might consider expanding your kitchen into a home chef’s paradise or creating an open-concept dining and entertaining area.
A detached garage could also become an apartment for your child as a young adult. Or, you might turn it into an art studio or a home office. The options are virtually endless. So a good first step is to figure out how a converted garage might provide the most value for your family.
Need help funding your garage conversion?
Check out home improvement loans with SoFi.
Converting a Garage to an Apartment
If you’ve decided to convert your garage into an apartment, whether to create an in-law suite or a private space for your older child, you’ll want to consult your local planning board to find out what permits, if any, are needed. Often, if you’re building a new structure or making modifications to existing structures, a permit will be required. In fact, it’s important to double-check whether a permit is needed even for light remodeling.
Before you begin converting your garage, you might want to map out where everything is going to go and what you’ll do with the items that are currently in the space. To streamline that process, you could divide the items into one of three categories:
• Keep
• Donate
• Throw Away
Once you’ve donated and thrown away items, it’s time to determine where you want to store the remaining items. Do you have a basement or attic where you can pack away everything you’ve stuffed into the garage over the years? How can you make those areas more storage-friendly?
If you still want to use a portion of your garage for storage after conversion, you might think about how to partition off that section so that the rest of the garage looks attractive and not cluttered. If you don’t want to use your garage for storage after the conversion, you might consider building an outdoor shed (provided your HOA or neighborhood association allows it) where you can items you don’t need on a regular basis.
Garage Floors and Doors
Deciding what to do with garage floors and doors is a crucial part of a garage conversion. If you have a traditional garage, the flooring might be a concrete slab with no insulation. In addition, the garage floor may fall several feet below the floors in your home, sloping toward a floor drain or the garage door, in which case you’ll need to have the floor leveled.
Then there’s the garage door to consider. If you remove it, you’ll likely have a large, gaping space. You might want to install a wall with french doors to let in the light or create a new wall that contains a large bay window. What you do might depend on whether or not you want the spot where the garage door existed to be an entryway.
Garage Roofing, Ventilation, and Insulation
Before beginning a garage conversion, you’ll want to check that the garage roof is watertight. If it’s not, some roofing upgrades could be necessary. If the plan is to install a kitchen or bathroom in your converted garage, you may also need to address ventilation issues. To create a comfortable space, you’ll also need to ensure there is proper insulation in the walls, roof, flooring, and anywhere else it’s needed.
Garage Windows and Walls
In order to create walls, you may need to install stud framing and drywall. In addition, you may need to put insulation and moisture-proofing, as well as wiring, in the walls. Also consider whether you want to add closets to your converted garage. If so, now is the time to lay those out.
One way to make a garage quickly feel like home is through access to natural daylight, which can be achieved by installing large windows strategically throughout the space or punching holes in the ceilings to install skylights. Consider using window styles that match those on your home to give it a cohesive look, especially with attached garages.
Garage Heating, Plumbing, and Wiring
If you have an attached garage, consider whether your current HVAC system can heat and cool your converted space. You may want to think about supplementing what you currently have, whether through a floor heating system, electric baseboards, wood stoves for the winter season, or an air-conditioning unit to cool off the space in the hot, sticky months of summer.
With plumbing, consider how to run pipes to supply water to the garage, as well as how to effectively drain the water back into the sewer system. If you need to add plumbing to the new space, this could be one of your bigger expenses.
Recommended: What Are the Most Common Home Repair Costs?
What It Costs to Convert a Garage
How much it will cost to convert a garage into a living space will depend on what you will use the space for, the size of the garage, and the materials you choose. You could spend anywhere from $6,000 to $27,000 or more on a garage conversion.
To convert a garage into a bedroom, for example, you may need to spend around $12,000. If your plan is to make it a master bedroom with an attached bath, however, it could run closer to $25,000.
Converting a garage into an office tends to be one of the more budget-friendly options, since you don’t need plumbing and closets. You can expect to spend somewhere around $5,000. Turning your garage into an in-law suite, on the other hand, will likely cost quite a bit more. You could spend anywhere from $20,000 to $50,000, depending on plumbing, appliances, and finishes.
Financing a Garage Conversion
As you’re dreaming up your plans for a garage conversion, be sure to keep your budget top of mind. It’s a good idea to get estimates from at least three contractors before you move forward with the project.
If you’re unable to pay upfront for the project, you may need to consider financing. One type of loan that can work well for a garage conversion is a home improvement loan.
This is an unsecured personal loan used to finance home upgrades and renovations. You receive a lump sum up front which you can use to pay for your garage conversion; you then repay the loan over a set term, often five to seven years, with regular monthly payments. Interest rates are typically fixed.
Recommended: How to Find a Contractor for Home Renovations & Remodeling
The Takeaway
Converting a garage can be a great way to expand your livable space, while also adding value to your home. The design possibilities are virtually endless — you might turn your garage into an in-law suite, rec room for kids, gourmet kitchen, artist’s studio, home office, hobby room, home gym, or workshop.
Whatever direction you take your garage conversion, you’ll want to consider your budget and whether you need to explore financing options like a personal loan.
Think twice before turning to high-interest credit cards. Consider a SoFi personal loan instead. SoFi offers competitive fixed rates and same-day funding. See your rate in minutes.
FAQ
Is it worth doing a garage conversion?
Converting your garage can add value to your home because you’re bumping up the amount of livable space. According to the home services website Angi, homeowners typically get back about 80% of what they spend on a garage conversion.
What is the downside of a garage conversion?
While a garage conversion can open up extra living space, it can also mean giving up valuable storage space. Before you move ahead with the conversion, make sure you have a plan in place for your storage needs.
Do I need permission to convert my garage?
Possibly. Some areas require homeowners to get a permit before adding a new structure to their property or modifying an existing structure. To be on the safe side, consult your local planning board to find out what permits (if any) are needed.
About the author
Julia Califano
Julia Califano is an award-winning journalist who covers banking, small business, personal loans, student loans, and other money issues for SoFi. She has over 20 years of experience writing about personal finance and lifestyle topics. Read full bio.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPL-Q225-024