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A carriage house combines garage or storage space with living space, usually in two stories, while a garage generally does not offer any living space. Carriage houses are built with plumbing, insulation, and heating and cooling systems, which are usually features not found in traditional garages. Building codes and insurance requirements greatly differ between the two types of structures, and may make it difficult to convert a garage to a carriage house.

Garages are often equipped with lighting, electrical boxes, and sometimes even heating and cooling, while carports rarely have utilities. A garage is an enclosed structure that can lock and usually has an automatic door. A carport is often wood or plastic and is designed only to protect a car from elements like rain, snow, and hail. Carports are commonly seen on property where an attached garage is unfeasible but can be a cost-effective solution for car protection for anyone without a completed garage. 

In some cases, a detached garage can be considered extra living space, but you will need to gain permission and comply with your local building code. Depending on where you live, you may need permits for a variety of installations, including electrical work, plumbing, and structural work. Many homeowners make the mistake of converting a garage into a living space without acquiring permits, which can result in hefty fines and even the removal of your hard work. Furthermore, a detached garage doesn’t add to the livable square footage of your home when it’s time to sell.

A garage counts toward the official square footage of a house if it is considered livable space. For a garage to qualify, it typically needs to be attached to the home and have permanent finishings like proper insulation, finished walls, and ceilings. It must also be livable year-round, which requires adequate heating, cooling, and ventilation. The exact legal requirements for what constitutes living space can vary by location.