The cost to add a room above a garage can be well worth it because it boosts your home's square footage and value. Let’s take a look at the cost and ROI.
How Much Value Does a Garage Add to a Home?
Gear up your home’s value and convenience with a garage addition
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A garage adds value to your house by increasing your home's appeal, with returns ranging from $12,800 to $33,200 depending on location and garage type.
Building a garage costs $16,540 to $40,845, and your return on investment depends on factors like size, materials, and local market demand for parking.
You can estimate your garage's added value by researching comparable home sales, considering market demand, and getting a professional property appraisal for accuracy.
Hiring a local garage building professional keeps your project on track, managing permits, construction quality, and ensuring your garage meets local building codes.
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If you’re considering making additions or improvements to a home, you’ll likely want to know how much a garage adds to home value. A garage isn’t just a functional space to park your wheels—it can increase the value of your home by between $12,750 and $33,150.
The added value of a garage depends on factors like location, size, materials, and more. Learn about this project’s return on investment (ROI) to help you determine if it’s worth adding a garage.
How Much Does a Garage Add to Home Value?
A well-designed and functional garage adds to your home’s overall appeal, which can lead to a higher home value. On average, the added value of a garage ranges from $12,800 to $33,200, amounting to about a 75% to 85% ROI.
The reason behind this value increase is quite practical. A garage provides convenience and security, making it attractive to potential homebuyers. It also offers additional storage space and the potential for various uses, like a workshop or extra living area.
Factors That Influence Garage Value
Photo: Allan Wolf / Wirestock Creators / Adobe Stock
The added home value of a garage isn’t uniform. Attached and detached garages can contribute differently to value, for example. These are the top factors that drive garage value.
Location
Location plays a crucial role in determining the value added by a garage, since some areas may have higher demand for secure parking spaces.
That demand might be simply due to limited parking spaces available in the area. Higher demand could also result from climate—if you’re in a hotter region, a garage provides some shade, so that your car doesn’t become a furnace from sitting in the sun.
Garage Size
As you might have predicted, garages of different sizes add different values. A larger garage has higher value, since it may hold multiple vehicles or provide extra storage space—both of which benefit a prospective buyer.
Garage Type
There are a few different types of garages, which can contribute differently to home value:
Attached garages are directly connected to the house's main structure, sharing one or more walls. They may have a higher added value, since they are easier to access from the home and protect you from inclement weather.
Detached garages are standalone structures, separate from the main house. They have more flexibility in terms of space and use, but their distance from the house (and the higher cost of building one) might mean a lower ROI.
Built-in garages are built within the house’s main structure, either below or beside living spaces. Much like attached garages, built-in garages are directly connected to the house, but they’re built with a keener eye toward aesthetics, blending seamlessly with the home's overall design and potentially adding higher value.
Construction and Materials
Well-built garages with durable materials enhance functionality and contribute to the property's overall aesthetics.
Homeowners appreciate material quality—43% of homeowners said they consider durable and long-lasting materials the most important outcome of replacing a garage door, according to the National Association of Realtors.
To ensure the quality of your garage’s construction, make sure to hire the right pro to build the garage.
How to Estimate the Added Value of a Garage
Here are a few steps you can take to help estimate the added value of a garage to your home:
Look at comparable properties. You can research recent sales of homes with similar garage sizes and features in your neighborhood. See how properties recently sold with and without garages sold to gauge the impact on sale prices.
Consider market demand. If properties with garages are in high demand in your area, adding a garage to your home could significantly increase value. On the other hand, if all houses in your area have garages except yours, your home will likely be valued much less.
Calculate the cost of a garage addition against returns. Factor in materials, labor, permits, and supplemental features to determine the cost of building the garage. Compare this cost to the potential value increase to assess the ROI.
Take size into account. Consider how much available space you have to build a garage. Larger garage sizes can contribute more to overall value.
Get appraised. You can hire a property appraiser to assess your home's current value and estimate the potential value increase with a garage.
Is Adding a Garage Worth It?
Before building a garage, you’ll first want to consider the price. The cost of building a garage ranges from $16,540 to $40,845. Compare the total estimated cost to the potential ROI, which ranges from 75% to 85%.
Also, remember that building a garage will take time, from obtaining permits to completing construction. Consider how much time you’re willing and able to devote to the project.
On the other hand, numerous benefits come with an added garage, including more storage space, parking, protection from the elements, curb appeal, and security for vehicles and belongings. If you live in an area with limited parking space, adding a garage could be especially worthwhile.
Because of the time, equipment, and knowledge of regulations needed to build a garage, it’s best to hire a professional garage builder near you for the job.
| Pros | Cons |
|---|---|
| Increased property value | Costly investment |
| Convenient and secure parking | Time-consuming construction process |
| Added storage space | Can limit yard space |
| Enhanced curb appeal | Local zoning and permit requirements may apply |
Does Converting a Garage Add Value?
If you have ideas for transforming your garage into a cozy den or a home gym, you’ll also be happy to know it can be a smart investment. Converting a garage can add value to your home when done properly by giving your home a personalized touch and maximizing living space.
According to Cottage, a garage conversion can give homeowners up to an 80% ROI.
However, there are a few caveats to consider. Without adequate parking space, such as a driveway or street parking availability, turning a garage into a living space could actually decrease your home’s value. A garage conversion could also negatively impact home value if there isn’t much storage space.
If the conversion is done with poor workmanship, it can have systemic issues, lose aesthetic appeal, and detract from your home’s value. It’s best to hire a pro to do a garage conversion to ensure a remodel is done properly.
Finally, make sure the conversion is done with the right permits and adheres to building codes.
Frequently Asked Questions
Garage services reviews from real Angi homeowners in Columbus, OH
1.5★ avg. • 2 total reviews
- Thomas S.
Company came to look at my garage door that was off track. They also said I needed a brace on the other garage door. They put the door back on track, and I paid to install the brace. The technician told me I needed a new garage door opener, and it would cost $1000. Red flags went off in...
Precision Overhead Garage Door Service - Matt J.
I highly recommend KTM construction! I will look no where else for anything that needs to be done, in or out side of our property. The level of craftsmanship is 5 star service across the board! The level of detail, knowledge and professionalism is 5 star service across the board! Ken is a...
KTM Construction, LLC - Jim L.
Replace garage doors: Fast response, competitive estimate, timely work done well.
Village Garage Door - Dawn B.
Called Mark on a Thursday morning. Not really knowing if he could help me or not. I was having driveway, flooding issues due to a clogged channel drain and I was trying to figure out what direction to take. Heavy rains had come on Monday and again on Thursday leading to flooding in my garage...
Mark Rodgers Construction - Robb B.
Not well. I originally emailed Garage Gurus on 8/6, again on 8/9, and again on 8/11. In the meantime I left two voice messages with their answering service; both times I was told that an estimator would "get right back" to me. Not even the courtesy of a reply of any kind. Extremely...
- Beth W.
This company is amazing! My garage door broke this afternoon and was stuck in the open position. I couldn't leave with the door open so I called Sanford and Sons because the company was recommended by the manufacture of my garage door motor. Nancy answered the company phone and problem...
- John A.
The workers parked large trucks and trailers in the street that, on many occasions, over several months time precluded me from being able to get my car out of my garage. Additionally, it made for difficult movement of traffic on the street. Frequent request to the workers and to the property...
- Jean P.
We had two outdoor fixtures swapped for motion sensing fixtures and a GFCI outlet added to the outside of the garage for the bird bath heater. <br /> He arrived at the agreed upon time and I was surprised and impressed at how quickly everything was completed. <br /> I would definitely...
Powers Electric LLC - William L.
I received a glowing recommendation of RoofWise from my accountant & contacted them regarding a stubborn leak I've battled where the family room addition meets the original house. I also asked for a recommendation regarding ongoing garage leaks. Following a detailed inspection Roofwise...
RoofWise Roofing Inc - William L.
Met with and received a detailed estimate from the owner who also answered all the questions I had about the work. Work was delayed by unusually rainy weather, but I did receive periodic scheduling updates by email. When the weather broke, the painting was completed in an extremely...
Fresh Touch Custom Painting Inc.
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