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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.

If you plan on heating your garage, you must install a vapor barrier when drywalling the garage. A vapor barrier protects your garage from frost and mold that can occur through condensation. If your garage is unheated, you don't need to install a vapor barrier. The only exception is if you regularly crank the heat in your car before getting in it. In this case, you may still want to install a vapor barrier, as your car can heat your garage.

The ideal temperature for your garage in the winter is between 40 and 68 degrees Fahrenheit. Maintaining a minimum temperature of at least 40 to 50 degrees is crucial to prevent pipes, liquids, and other items from freezing. Low temperatures can also drain your car battery, so keeping the garage stable is vital for your vehicle. While the lower end of the range protects your belongings, the higher end is based on your personal preference for a comfortable space. If you struggle to keep the temperature from dropping below 40 degrees, consider installing a garage heater.

The decision on whether a garage or an extra room adds more value depends on several factors, including local market demand, location, and buyer preferences. Generally, added living space is more desirable to most buyers, and the utility of the new space determines its return on investment (ROI). Converting a garage into a livable area like a home office, guest room, or entertainment space can add significant value. An additional bedroom, especially one with a bathroom, will likely add the most value. However, adding a garage may be more valuable in areas with limited parking or harsh climates.