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Yes, you can enclose your crawl space. Enclosing your crawl space can promote energy efficiency and reduce the risks of pests and mold by limiting factors like humidity. It can also reduce heat loss, which is why doing so for the winter can make your home more comfortable.

Yes, it is generally unhealthy and can be dangerous to live in a damp basement. The damp air can negatively affect your breathing and lungs, and the moisture promotes mold growth and pest infestations. Inhaling mold spores or waste particles from insects and rodents attracted to the moisture can be hazardous. This damp, moldy air can also circulate into your main living area. It is crucial to resolve any moisture problems and implement preventative measures before using your basement as a living space.

In most cases, a crawl space will not dry out on its own unless the moisture comes from an uncommon flood and isn’t expected to be a recurring issue. For most homeowners, moisture problems in the crawl space will only continue to get worse over time, so addressing the underlying problem with gutter systems or a foundation drainage system and setting up a preventative solution like a dehumidifier is necessary.

A walkout basement is considered to be partially below grade because at least one wall is entirely exposed. In some cases and in specific municipalities, inspectors and appraisers will still count walkout basements as below grade, which means the space can’t serve as living space or be rented out. If you intend on using the area as living space or a separate apartment, you should check with your local building department to make sure it’s legal to do so.