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How Much Does It Cost To Convert Or Remodel A Garage?

Last Updated on October 17, 2024
Written by CPA Alec Pow | Content Reviewed by Certified CFA CFA Alexander Popinker

As home values continue rising, converting an existing attached or detached garage into extra functional living space has become an increasingly popular renovation project. But what should you realistically budget in order to convert your garage into a bedroom, apartment, home office, gym, or other living area?

Whether adding an accessory dwelling unit, accommodating a home business, or simply gaining more room for a growing family, a well-planned garage conversion allows repurposing unused space to add significant value. But properly transforming a garage into a high-quality living environment requires strategic planning, permitting, skilled tradespeople, and a healthy investment.

How Much Does It Cost To Convert Or Remodel A Garage?

The cost to convert or remodel a garage starts around $30,000 up to $120,000+, depending on the size of your garage, overall scope and complexity of the remodel, materials and finishes selected, and additional factors.

Popular garage conversion remodel types include transforming existing attached garages into:

  • Extra bedrooms – Between $25,000 to $60,000+ depending on size, number of bedrooms, and finishes.
  • Home offices or studios $25,000 to $75,000+ based on custom built-ins, electrical, and design details matching professional standards.
  • Separate studio apartments with kitchenettes $50,000 to $130,000+ factoring in intensive electrical, plumbing, HVAC, and finish work involved with independent living units.
  • Open concept family rooms or entertaining spaces $35,000 to $100,000+ depending on spatial flow, sightlines, built-ins, and outfitting for AV equipment, gaming, etc.
  • Craft rooms or workshops $20,000 to $50,000+ based on storage solutions, custom cabinetry, electrical, and dust collection systems matching your hobby needs.

In almost all garage conversion projects, more complex functional transformations like adding bathrooms or full kitchens for apartments understandably entail higher costs than simpler projects focused on finishes and storage.

According to Angi, the average cost for converting a garage is around $16,537, with a typical range between $6,026 and $27,516. The cost per square foot generally falls between $25 and $75, depending on the complexity of the conversion and the quality of materials used.

Another source, Bob Vila, reports that garage conversion costs typically range from $6,012 to $27,090, with a national average of about $16,199. This price can fluctuate based on the type of conversion, project scope, and local labor rates. Homeowners are encouraged to consider multiple quotes from contractors to get a more accurate estimate.

A detailed overview from Maxable Space indicates that costs for garage conversions in California can start at around $140,000, primarily due to higher labor costs and regulatory requirements. This figure includes design, permitting, and construction expenses but can vary widely based on specific project details.

According to an article on Airtasker, the average cost for a garage conversion can range from approximately $6,000 to $40,000. The type of room being created—such as a simple bedroom versus a full kitchen—greatly influences the final price. For example, converting a garage into a kitchen can cost between $6,000 and $25,000.

Garage Remodels Are Becoming Popular

Homeowners choose garage conversions to:

  • Add living space without expanding the home’s footprint.
  • Create rental units or multigenerational living spaces.
  • Enhance home values by converting unused areas into functional spaces.
  • Accommodate remote work, hobbies, exercise, and more.
  • Modernize and upgrade outdated or dilapidated garages.

Their flexibility provides smart options for many homeowners’ needs.

Factors Impacting Conversion Costs

Several considerations affect garage remodel pricing:

  • Size of the space
  • Scope of renovations needed
  • Type of flooring, insulation, etc. selected
  • electrical and plumbing upgrades
  • HVAC installation costs
  • Permitting and architectural fees
  • Location and contractor rates

Larger, more complex projects understandably cost more.

Cost Breakdown

While every garage conversion is unique, the following outlines typical budget line items and cost ranges:

You might also like our articles about the cost of a new garage, a guest house, or the installation of a garage door opener.

  • Demolition, junk removal – $2000 to $8000
  • Framing, drywall, trim carpentry – $5000 to $20,000
  • Electrical system upgrades, wiring, fixtures – $3000 to $15,000+
  • Plumbing system installation, drains – $5000 to $25,000+
  • HVAC system, ductwork – $5000 to $15,000
  • Insulation (walls, ceiling, floor) – $2000 to $5000
  • Windows, exterior doors – $2000 to $10,000
  • Flooring – $5000 to $15,000
  • Bathroom fixtures, cabinets – $3000 to $15,000
  • Kitchenette cabinetry, appliances – $5000 to $30,000
  • Interior doors, custom built-ins, trim – $2000 to $15,000
  • Painting, finishes – $3000 to $7000
  • Required permits, architectural plans – $1000 to $5000
  • Labor costs – $10,000 to $50,000

Total: $30,000 to $120,000+ depending on scope and finishes.

Step-by-Step Process

Converting a garage involves:

  1. Planning out the design and usage.
  2. Obtaining any required building permits.
  3. Initial demolition and prep work.
  4. Framing interior walls and installing insulation.
  5. Running electrical, HVAC, and plumbing if needed.
  6. Hanging drywall and adding finishes like trim.
  7. Installation of fixtures, flooring, storage, and more.

The process requires both skilled tradespeople and careful oversight to complete within budget.

Convert Garage Into Bedroom or Living Room

For homeowners not seeking fully independent living spaces, but simply extra living area square footage, typical garage conversion budgets include:

  • Small single-car garage into basic bedroom – $25,000 to $45,000
  • Average two-car garage into open family room – $35,000 to $70,000.
  • Large three-car garage into master suite and adjoining office $60,000 to $100,000

These projects still involve major renovations and finishes but avoid the substantial plumbing and electrical costs associated with adding bathrooms or full kitchen capabilities.

Return on Investment

Garage remodelingBeyond enhancing day-to-day home functionality, key financial benefits of strategic garage conversions include:

  • Added living space allows generating rental income from accessory dwelling units or provides needed square footage for a growing family without expensive tear-downs.
  • Increased home property values, often by 60% to 80% of conversion project costs depending on market demand trends. Valuable square footage sells.
  • Enhanced utility and flexibility from former wasted garage space without expanding the home’s overall footprint or disruptive additions.
  • Higher quality living areas that contribute value versus outdated, deteriorating garage structures which can detract value.
  • Rental potential for those entering the Airbnb or long-term rental markets by adding completely separate dwelling spaces.

With careful planning and budgeting, garage conversion ROIs often justify the major initial investments required.

Budgeting and Financing Options

Popular ways to fund garage conversion costs without draining savings include:

  • Home equity loans and lines of credit offer low rates by leveraging existing home value. One of the most affordable and convenient financing options.
  • Cash-out mortgage refinancing converts equity into low-rate funds. Best for major remodeling projects.
  • Personal loans through banks, credit unions, or online lenders. May offer better rates than credit cards without home collateral.
  • FHA 203(k) renovation loans combine a mortgage and project funds into one government-backed loan. Low down payments available.
  • Unsecured home improvement loans with fixed rates and terms tailored for renovations.
  • 0% financing promotions some contractors offer when bundling project costs into mortgage payments.

Always model the total interest paid over the life of any loan when selecting optimal garage conversion financing. Avoid exorbitant credit card rates.

Final Words

In most cases, homeowners can expect to invest an average of $50,000 to $100,000 converting existing garages to finished living spaces depending on project scope and complexity factors.

But strategic garage renovations almost always maximize underutilized space, enhance home values, and provide excellent long-term ROI potential for those able to finance the initial costs.

Involving architects early, meticulously planning, understanding local permitting, and securing experienced contractors prevents costly surprises mid-project. Done right, garage conversions provide ideal flexible space as needs evolve.

Answers to Common Questions

Does a garage conversion need planning?

Yes, most areas require permits and inspections for garage conversions to ensure compliance with local building codes and zoning regulations. Failing to get proper approvals can result in fines or issues when selling the home.

Do you have to raise the floor in a garage conversion?

In most cases, yes – installing a raised subfloor in a converted garage makes the transition between spaces smoother. However, some homeowners opt to maintain the existing concrete slab floor if on a tight budget.

How long does a garage conversion take?

With proper resources and oversight, an average garage conversion takes 8-12 weeks from demolition to finishing touches. More complex projects with significant structural changes or custom designs can extend timelines further.

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