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Drywalling a garage is a smart decision if you want to protect your garage from fires, moisture damage, and exterior noise. Most garages have flammable supplies that could result in serious damage in the off chance of an accident. Drywall is fire resistant, helping to prevent fires from spreading. Not to mention, drywall can improve the appearance of a dingy, old garage.

It’s better to build a garage than buy and install a prefabricated one. You can save money by purchasing a prefabricated metal garage kit for between $4,000 and $11,000. However, this does not include the price of labor and permits, which can account for more than half of the project cost. Building a new garage over buying a prefab garage will add more value to your home and will last longer, so it’s more cost-effective over time to build a new garage.

You do not need to drywall over most types of garage insulation. However, doing so can increase noise reduction, make the space more attractive, and keep children and pets from touching harmful fiberglass insulation. If you’re using cellulose or some other type of blown-in insulation (fiberglass and mineral wool are common), you will need drywall to contain the insulation material.

A garage ceiling needs a vapor barrier if it’s a heated garage or if you’re installing insulation in the ceiling. Without a vapor barrier, you risk moisture issues and mold growth. If you have an unheated garage and don’t plan on installing insulation that could get wet and harbor mold, the ceiling doesn't need a vapor barrier.