Add to your home’s value when you add living space
Home additions offer a 24% to 35% ROI, and your return depends on the addition's size, function, construction quality, and material choices.
Expect to pay $22,000 to $83,000 for a home addition, with costs varying based on excavation, foundation work, utilities, and architectural design.
You can estimate your addition's value by comparing similar properties, researching buyer demand, and calculating total building costs against potential resale increases.
Hiring a local home addition professional ensures your new space meets building codes and blends seamlessly with your existing home's design and structure.
If your home is short on space, building an addition can be a great alternative to upsizing to a new home. But will an addition pay off when it comes time to sell? According to Remodeling’s 2024 Cost vs. Value Report, home additions offer a 24% to 35% ROI, depending on the size and type of addition. Learn which factors influence an addition’s effect on your home’s value so you can make the right choice.
There’s no end to the variety of additions you can build onto your home, whether you’re looking for another bedroom, extra common space to use as a playroom or bonus room, or an additional bathroom so you can avoid waiting for the shower every morning. Every addition will affect your home’s value differently, and there are several factors that can have a big impact.
The square footage of your addition will play a large part in determining its value. Larger additions will have the biggest impact due to the amount of usable living space they add. Size isn’t the only factor, though—even a small bathroom can pay off by attracting buyers when it comes time to sell.
It’s so easy to overestimate the space you need—like adding a large guest suite that never gets used—so considerations must be made carefully. The perfect size strikes a balance between the things that appeal right now, how you and your partner plan to live for the long haul, and the context of the neighboring homes so that you don’t unwittingly price your dream home out of the neighborhood.
The type of addition can also help dictate its value. Adding a bedroom can increase home value and make your home more appealing to prospective buyers, while a bonus room or common area may not be as big of a draw. Bedrooms and bathrooms have the highest returns on investment when it comes to additions—the added space can make your home more attractive to bigger households.
How your addition is built will affect its value—sturdy construction that meets all local codes and visually blends with your home’s design will give you much higher returns than an addition that looks like an afterthought. You may think that using premium materials for an upscale addition will pay off, but higher-end additions don’t actually have as high an ROI as more midrange ones do. You’re better off not using top-of-the-line materials if you’re looking to recoup more of your initial investment.
Building an addition is a job best left to the pros. Hire an architect to design the addition and a local home addition contractor to build it, so you know your new space is structurally sound and meets all required regulations. Because building an addition is structural work, you’ll need to pull permits and have the finished work inspected, and many municipalities require the work to be done by licensed professionals. Look for a pro who builds home additions in the style you’ve chosen so it can be seamlessly integrated with your existing home.
Home addition values vary widely, but it’s a good idea to have an estimate of how much value a potential addition will add to your home. A few ways to estimate the value of an addition include:
Look at similar properties. If you want to take your home from two bedrooms to three, take a look at average resale values for both in your area.
Find out what buyers are looking for. See if properties with a certain kind of addition are in high demand in your market.
Compare total building costs with potential return. Add up materials, labor, permit costs, site prep, and other costs to build an addition to see if the potential increase in value makes an addition a good investment.
On average, home additions cost between $22,000 and $83,000, depending on the size, function, and details of the addition. Costs that can affect your total project price include excavation, foundation work, utilities, architect costs, structural engineer costs, and more.
If you’re trying to decide between looking for a bigger house or adding on to your current house, or maybe if you’re considering an accessory dwelling unit (ADU) vs. an addition, it’s worth looking at the pros and cons of an addition before making your choice.
| Pros | Cons |
|---|---|
| Added living space | High up-front cost |
| Increased house value | Loss of yard space |
| Customizable design and function | Construction time and disruption |
Jason has helped me with multiple household projects, with the most recent being new door installation. He has always showed up on time and organized and has done an incredible job! Jason is very professional and he's now my go-to for anything around my house that needs to be fixed or...
Huff Garage Rescue, LLCCole has been handling plumbing and general contracting for our four properties over the past three years, and he’s always done a great job. Most recently, he installed a sink and countertop in our retail store where none existed before, and it turned out exactly how we needed. He’s...
ANB Renovations LLC1st Choice Renew is simply the best! We hired them for a complete home renovation, and they transformed our space into something truly amazing. The team attention to detail and commitment to quality were evident throughout the project. They were easy to work with, very responsive, and always...
Save A DimeThis company went above and beyond with their work, chimney sweeps are usually pretty messy, but the clean up was spot on.!! Josh explained every thing that he was doing, and the things that he was checking to make sure the chimney was safe for me and my family. He was very professional,...
Supreme brick & chimneyCustom Paint Jobs LLC turned our outdated bathroom into a modern masterpiece.
Custom Paint Jobs, LLCExcellent customer service and knowledge. I was recommend to him from my neighbour. My front door and window came in great and were installed beautifully perfectly, I m very satisfied with their excellent work, so decided to order one more big bow window for my living room. I cant wait for...
Window Depot USA of Central OhioIf I could give 10 stars for Kitchen Tune Up, I would. I cannot say enough good things about my experience with Kitchen Tune Up and the entire team involved in the process of my kitchen project. They went above and beyond as far as service and quality with my cabinets, paint, countertops, and...
It was wonderful working with Yordy and his team. They were very professional and are experts in what they do. They have completed the work on time, with better quality and with in fairly reasonable price. We just started with backsplash work , but liking his work, we went on to provide...
Flooring SolutionsWe were having 2”x 2” tile installed . There was a small installation error and the new additional replacement tile was from a different lot and the colors didn’t match. Joe assured us that he would rectify everything , which he did without hesitation. We decided to go with the 18” x 36” tile...
CarifaTileThey work that 360 did on my kitchen cabinets is nothing short of amazing. I still cannot believe the difference from before and after. Jon and Jeff were both so incredibly professional throughout the whole process and their communications with me were constant and consistent. These guys...
360 Painting ColumbusFrom average costs to expert advice, get all the answers you need to get your job done.
An entryway addition can cost thousands, but it pays off in multiple ways. Let’s look at entryway addition costs and what factors affect your total.
Do you want to add a mudroom to your home but are unsure if it’s within your budget? Use this mudroom addition cost guide to determine your installation price range.
Building an addition can increase your home's value and provide more space to live, but it does come at a cost. Read on to learn how much it costs to build a room addition based on factors like location, type, and size.
Dreaming of more living space but not sure it’s worth it? Learn how much adding a bedroom increases home value to get an idea of the ROI you’ll see.
Wondering what truly adds value to a home? Using the latest data, we put together a list of the 34 most valuable home renovations and upgrades you can make to expand your investment and maximize ROI when it’s time to sell.
Considering converting that unused basement to living space? Learn whether adding a bedroom in the basement adds value and what factors affect your ROI.
