Adding A Room To A House: 5 Low-Cost Home Additions | FortuneBuilders (2023)

Key Takeaways

Key Takeaways

  • Do home additions add value?

  • 5 types of home additions

  • How much do home additions cost?

  • DIY vs. hiring a contractor

If you’re considering upgrading your home, it can be tough to decide whether or not you want to add a room or make any other types of additions. First, you likely have a set budget to work with and can’t afford every single project you could dream of. Second, it can be tricky to choose between projects that would make you intrinsically happy versus the projects that would add the most value to your home. In this guide, we’ll help you navigate these decisions. First, we’ll discuss if adding a room to a house adds value or not. Then, we’ll reveal 5 different types of home additions that add value. Finally, we’ll help you account for different home addition costs so that you can estimate your budget.

Does Adding A Room To A House Add Value?

Home additions are investments that can increase your home value. If you plan to stay in your home long-term, then making those changes to make the home fit your tastes and needs is worth it. Moreover, adding a room to your house can give you more space and increase your resale value should you decide to sell.

Here is a list containing common home addition examples and their respective return on investment (ROI), suggested by HomeAdvisor:

  • Adding a master bedroom with an ensuite bathroom: 63%

  • Adding a bathroom: 53%

  • Adding a sunroom: 49%

  • Making a two-story addition: 65%

[ Thinking about investing in real estate? Register to attend a FREE online real estate class and learn how to get started investing in real estate. ]

Adding A Room To A House: 5 Low-Cost Home Additions | FortuneBuilders (1)

5 Types Of Home Additions To Add Value

Home additions can address your needs in terms of your budget, living space, and style. Whether you’re having another baby or inviting your in-laws to come live with you, different life events can create the need for more room in your house. Projects can range anywhere between low-cost additions that you can do-it-yourself (DIY) to large-scale projects that are expensive and require a construction team. One might even argue that a conversion counts as an addition, especially if you’re creating a functional living space out of a garage or an attic, for example.

The following discusses 5 types of home addition examples, all of which can improve your lifestyle and add value to your home.

(Video) DIY addition. How to build a room addition to your home on a budget.

Completing Unfinished Rooms

Do you have a space in your home that you avoid whenever possible? Maybe descending into your basement gives you the heebie-jeebies, or going up to the attic reminds you of a horror movie.

Completing unfinished rooms can often offer the biggest bang for your buck. This is because these spaces already exist in your home, which means that you don’t need to make a structural addition to your property. By finishing an attic or a basement, you can create a livable and enjoyable space. These spaces also often feature an ample amount of square footage so that your house instantly feels much more spacious once the project is complete.

Converting A Garage

Do you have a garage? Can you get used to the idea of parking your cars in the driveway or on the street?

A garage conversion is when you repurpose a garage as a living space. This can be done by sealing the garage door and adding windows, flooring, and lighting. The converted garage can serve as an additional bedroom, home office, playroom, or even a man cave. The choice is yours.

If permitted by your city, you may even consider designating your garage as a small studio apartment by adding a bathroom, kitchen, and separate entry. Doing so can create privacy for an adult child or your in-laws who want to live with you. You might even consider renting out the studio space to a short-term or long-term renter to secure passive income. This latter option will help the conversion pay for itself.

Making A Conventional House Addition

If your property size and permitting allow it, you also have the option of making a conventional addition to your home. This means that you would build an additional structure that is attached to your home. It increases the square footage of your home and can serve as an additional room. Ideas include adding a master bedroom with an ensuite bathroom, a living room, or any other type of room that serves your needs.

Adding A Room To A House: 5 Low-Cost Home Additions | FortuneBuilders (2)

Adding Bump Outs

A bump-out is a less-expensive option that allows you to add space to your home without having to conduct any foundation work. A bump-out hangs over the existing edge of the house and can make an existing room feel more spacious.

Bump-outs can serve different purposes based on what rooms you choose to put them in. For example, a kitchen bump-out can feature a bench for the breakfast table. A living room bump-out could provide a cozy reading nook.

Adding A Sunroom

A sunroom can add a beautiful space to your home that will appeal to many homebuyers. This is especially true in cold-climate locations where going outside is not an option in the harshest winter months.

Sunrooms feature floor-to-ceiling windows, thus letting in large amounts of natural light. They are insulated, thus making them habitable throughout the calendar year.

[ Thinking about investing in real estate? Register to attend a FREE online real estate class and learn how to get started investing in real estate. ]

Adding A Room To A House: 5 Low-Cost Home Additions | FortuneBuilders (3)

How Much Do Home Additions Cost?

The cost of home additions depends on several variables. As a general rule of thumb, larger projects cost more than smaller projects. If you have a specific home addition project in mind, it’s helpful to conduct online research to get a ballpark estimate. Once you’ve narrowed the scope of your project, you can then get a more precise estimate from a prospective contractor. It’s recommended that you build in a margin for possible errors and delays.

Some variables that affect home addition costs include materials, labor, and the type of project you select. We’ll cover all of these and more next.

Home Addition Material Costs

Material costs are a major driver of home addition prices. This is because the cost of materials vary greatly; they depend on the size and scale of your project. Here is a sample of various home addition material costs:

  • Flooring: $0.50 to $15 per square foot

  • Roofing: $75 to $600 per square foot

    (Video) Home Addition Budget, Drawings, & Permit

  • Foundation: $4 to $25 per square foot

  • Paint: $2 to $5 per square foot

  • Support Beams: $1,150 to $4,600

  • Drywall and Insulation: $1 to $3 per square foot

  • Siding and Trim: $1 to $30 per square foot

  • Interior and Exterior Doors: $250 to $2,000 per door

  • Windows: $250 to $1,000 per window

Home Addition Installation Costs

We recommend that you allocate roughly thirty to fifty percent of your budget for installation. Depending on your project, you might need to hire different teams of professionals, such as roofers, plumbers, and electricians. Below you’ll find a rundown of typical installation costs:

  • Architect Services: $2,000 to $10,000

  • Demolition: $500 to $10,000

  • Roofer: $2 to $5 per square foot

  • Electrician: $40 to $100 per hour

  • Plumber: $50 to $200 per hour

  • Carpenter: $75 to $100 per hour

  • General Contractor: $100 to $150 per hour

  • HVAC Technician: $50 to $100 per hour

Cost Of Adding A Room To A House

The cost of adding a room to a house largely depends on the type of room. Below you’ll find various room types and their associated price ranges.

  • Attic: $40,000 to $50,000

    (Video) Room Addition, add a room to your house, remodel, renovate your home

  • Bathroom: $25,000 to $75,000

  • Bedroom: $50,000; $100,000 for an en suite

  • Dining Room: $20,000 to $45,000

  • Kitchen: $50,000 to $100,000

  • Laundry Room: $5,000 to $7,000

  • Living Room: $20,000 to $45,000

  • Mudroom or Sunroom: $8,000 to $12,000

Cost Of Different Style Home Additions

Various home additions come with different price tags and are influenced by the different styles and features you decide to add. To give you an idea, here are some common home addition features and their typical costs. We’re providing a range of prices, as they can change based on size, style, labor, and quality of materials used.

  • Balcony: $5,000 to $10,000

  • Bump-out: $5,000 to $10,000

  • Cantilever: $15,000 to $20,000

  • Dormer: $5,000 to $10,000

  • Garage: $25,000 to $50,000

  • In-law suite: $50,000 to $100,000

  • Modular room: $25 per square foot

  • Porch: $5,000 to $25,000

  • Second-story addition: $500 per square foot

Home Addition Cost By Size

Last but not least, the size of your home addition will contribute to the overall cost. Here is a guideline of how much a home addition may cost, based on the square footage of your project.

(Video) Cheapest Home Addition Roof You Can Build - Design And Construction Costs

  • 100: $8,000 to $20,000

  • 200: $16,000 to $40,000

  • 300: $24,000 to $60,000

  • 400: $32,000 to $80,000

  • 500: $40,000 to $100,000

  • 600: $48,000 to $120,000

  • 700: $56,000 to $140,000

  • 800: $64,000 to $160,000

  • 900: $72,000 to $180,000

  • 1,000: $80,000 to $200,000

Contractor Vs. DIY Home Additions

Another important aspect of taking on a home addition project is deciding whether you’ll hire a contractor or do the home addition yourself (DIY).

If you take on the project yourself, you’ll want to make sure that you have the necessary time and skills. If you have a full-time job and your in-laws are moving in next month, it might make more sense to hire a contractor. It might also make more sense to hire a contractor if you’re worried that you’d end up botching the job.

On the other hand, you might go the DIY route if you’re not in a rush or consider the project a hobby. Perhaps you have a natural knack for construction and love looking up “how-to” videos on YouTube.

You can also create a compromise. You can do as much of the work you’re comfortable with and hire a contractor for the rest.


Home additions are not cheap, to say the least. For example, adding a room to a house can cost you anywhere between $8,000 to $200,000 depending on size, style, and quality of materials. Another important factor to consider is labor. Some handy homeowners will decide to execute the entire project on their own, while others will opt to hire a contractor and other professionals. Before you shy away from a home addition based on cost, consider the potential value you could add to your home. Yes, expanding and upgrading your home can be expensive, but it can significantly increase your resale value. More importantly, it can provide you and your family with more space and happiness in your abode.

Interested in learning more about today's most lucrative real estate strategies?

Whether you’re brand new to investing, have closed a few deals, or are a seasoned investor— our new online real estate class reveals the best real estate strategies to get started with real estate investing in today's market. Expert investor Than Merrill explains how these time-tested strategies can help you to profit from the current opportunities in real estate.

Register for our FREE Real Estate Webinar and get started learning how to start a successful investment business today!

(Video) What Is The Cost Per Square Foot To Build A Home Addition


What is the cheapest way to add a room? ›

Finishing a basement, attic, or garage is one of the more inexpensive ways to add a room to your home as you won't need to add a foundation, roof, or structural elements.

What is the most cost-effective home addition? ›

It should come as no surprise that a single-story, ground-level addition is usually the least expensive option. However, a two-story addition is often the most cost-effective option per square foot. It is important not to confuse a two-story addition with a second-story addition.

What is the cheapest way to add square footage to a house? ›

Finish an Attic

Take advantage of an unfinished attic to add livable square footage to your home—often the most cost-effective way to gain valuable space.

How much does it cost to build a 12x12 room? ›

The average cost to build a 12×12 room is $18,432 at $128 per square foot.

How much does it cost to build a room from scratch? ›

How Much Does It Cost to Add a Room to a House? It typically costs between $20,900 and $72,600 to add on a room, but the cost can reach as high as $125,000 or go as low as $5,600, depending on things like materials, labor, and room type.

Can I add a bedroom without planning permission? ›

An addition or extension to your house* is generally considered to be permitted development. So, you won't need to go through the additional hassle of getting planning permission as long as: Your extension is no more than half the area of land around the original house (curtilage).

What is the best way to pay for an addition? ›

In fact, there are many ways to get creative when it comes to bankrolling home projects.
  1. Home equity line of credit. ...
  2. Home equity loan. ...
  3. Cash-out refinance. ...
  4. Personal loan. ...
  5. Personal line of credit. ...
  6. Credit card. ...
  7. Cash.

What is the best foundation for a room addition? ›

Of these, the three most common are: The post and beam foundation. The most affordable foundations are pole and beam foundations (also pier and beam foundations, or pole and beam foundations), which are most suitable for sunrooms, screened porches, and living room additions.

How much does it cost to add 400 square feet to a house? ›

According to HomeAdvisor, home additions cost $80 to $200 per square foot. Adding a spare room is a common project, and the average cost ranges from $32,000 to $80,000 for a 20-foot by 20-foot room, with the higher end including more customization or luxury fixtures.

What is the absolute cheapest way to build a house? ›

The cheapest type of house to build is a rectangular tiny home — though your location, materials, and more can impact costs.
There are plenty of cheap building materials and alternatives to consider to cut costs.
  1. Prefabricated panel. ...
  2. Concrete sheets. ...
  3. Shipping containers. ...
  4. Reclaimed wood. ...
  5. Bamboo. ...
  6. Brick. ...
  7. Cob. ...
  8. Recycled bottles.
Jan 5, 2023

How hard is it to add a room to a house? ›

But adding or expanding a room isn't much easier than moving. You have contractors to hire, important decisions to make and a lot of money to spend. If you decide to add a room to your home, it will soon be filled with dust, plaster, nails and other construction materials.

Are home additions worth it? ›

Home Additions Increase Home Value

Home additions are an excellent way to increase your property's value. Most improvement projects such as remodeling and expansion make your home more valuable and attractive to buyers. You'll likely see a high return on investment (ROI) when you choose a home addition.

What is a bump out addition? ›

A bump-out is a minor addition to a house that increases its total square footage but doesn't reach the scale of a full addition with multiple rooms. A bump-out can be as small as two or three feet that push out the side of the house, or as large as a single room.

How much does it cost to add a bedroom and bathroom? ›

The cost of adding a master bedroom and bathroom to your home can vary. Most homeowners spend around $62,500 on this project, but the cost of this addition can range from as low as $25,000 to as high as $100,000.

How can I make a room for free? ›

12 best free home design apps
  1. Planner 5D.
  2. Roomstyler.
  3. Ikea Home Planner Tools.
  4. Design a Room.
  5. Homestyler.
  6. The Home Renovator.
  7. Sweet Home 3D.
  8. SmartDraw.
Jul 22, 2022

How much does it cost to build a room with drywall? ›

The price of building drywall runs between $1 to $3 per square foot. A typical panel is 4 feet by 8 feet or 32 square feet. Interior walls framed with drywall cost $20 to $30 per linear foot.

How much value does a room addition add? ›

Adding living space can add 5.3% on average to the median home value, according to Opendoor's home improvement data.

What is the cheapest way to add an extra bedroom? ›

By far the easiest and cheapest way to create an extra bedroom is to divide a large, double bedroom into two smaller ones. It's a fairly straightforward job to put up a stud wall and should only cost a few hundred pounds.

Can a room be considered a bedroom if it doesn't have a closet? ›

Closet Space

Most states actually do not require bedrooms to have built-in closets. Some local markets may not consider a room a bedroom without a closet, however, so it's important to know the local code in your area. Technically by national standards, however, a room does not need a closet to be a bedroom.

Can a bedroom have a door and no window? ›

The International Building Code requires every bedroom contains at least one egress window that is 5.7 square feet, at least 20 inches wide by 24 inches high with an opening no higher than 44 inches from the floor.

Is it cheaper to add out or up? ›

Here's the bottom line: When building new construction, building up with a two-story home is cheaper than building out. When remodeling, building out with a one-story addition is cheaper than adding a second story to an existing dwelling.

What is the average price to frame an addition? ›

Frame an Addition Costs
ItemUnit CostLine Cost
Material Cost$21.50-$38.80$4,300-$7,760
Labor Cost (structure)$35-$65 per hour$770-$1,950
Labor Cost (roof)$7-$9 per sq.ft.$1,400-$1,800
Total Cost32.35-$57.55$6,470-$11,510
4 more rows

Can I get a loan for an addition? ›

If you don't have the cash for your home addition and don't want to wait to save for it, a home addition loan can be a good option. Both personal loans and home equity loans have relatively low interest rates and can be used for these types of projects.

What is the cheapest foundation to build? ›

Price: Generally, slab foundations are your cheapest option when it comes to foundations, an excellent choice if budget is front-of-mind. Low Maintenance: Of all foundation-types, slabs require the least amount of maintenance, adding to their pricing value.

Do you need a foundation for a room addition? ›

Unless you're building up or bumping out, every addition requires some sort of masonry foundation dug down below the frost line so it won't get pushed around by freezing temperatures.

Do I need a concrete slab for an addition? ›

Things You'll Need

Forming a concrete slab for an addition is a critical step in the building process. Pouring a concrete slab for your new home addition can save you money if you do the job yourself. Forming the concrete slab is the most important part of the task, making sure it is level and has a solid base.

How many square feet is a 20x20 room? ›

How many square feet is a 20x20 room? The square footage of a room 20 feet wide and 20 feet long is 400 square feet. The square footage is found by multiplying the width (20 ft) by the length (20 ft).

Is it cheaper to build up or add on to a house? ›

Building up is always the least expensive option for increasing your home's square-footage because it requires less material and labor. For example, if you have 1,000 sq. feet on the main level and want to add 1,000 sq. feet as a second floor, all you have to do is add more wood and framing labor.

What is the average bedroom size? ›

Standard Bedroom Size

The average bedroom size is about 132 square feet while there are bedrooms much larger than even 144 square feet. The basic guideline to bear in mind while allocating space for a standard bedroom is that it should measure at least 120 square feet to comfortably accommodate a full-size bed.

How cheap can you build a 1000 sq ft house? ›

If you don't want to go tiny, you can still save money by going small. Small houses are about 1,000 square feet and cost about $125,000 to build. These homes typically consist of two small bedrooms and a living space. They may also have one bedroom, with roomier common areas or bathroom space, or three small bedrooms.

Will it be cheaper to build a house in 2022? ›

It is anticipated that interest rates will be on a rising trend throughout 2022 and costs will continue to increase, although the cost increases will be at a more normalized rate. It is highly unlikely that it will be less expensive to build in the future.

Can you price your house too low? ›

Is Your Home Sales Price Too Low? Homes sell at a price a buyer is willing to pay, and a seller is willing to accept. If a home is priced too low—priced under the competition—the seller should receive multiple offers to drive up the price to market value. So there is little danger in pricing a home too low.

What is the cheapest building material? ›

These 8 reasonably priced materials look good and are easy on your wallet.
  • Build for Less. 1/9. ...
  • Concrete Sheets. 2/9. ...
  • Reclaimed Wood. 3/9. ...
  • Used Brick. 4/9. ...
  • Corrugated Metal. 5/9. ...
  • Stone Veneer. 6/9. ...
  • Shipping Containers. 7/9. ...
  • Bamboo. 8/9.

What is the simplest house to build? ›

Easiest Small Houses to Build
  • All-in-One Kit Houses. Kit houses have been popular in the United States since their introduction in the late 19th century, according to Architect. ...
  • Quick Setup Yurts. ...
  • Industrial Quonset Huts. ...
  • Economical Shipping Containers.

What is the cheapest state to live in? ›

Here is a list of the 10 cheaper states to live in the U.S. in 2023:
  • Kansas (86.4)
  • Alabama (87.5)
  • Georgia (87.8)
  • West Virginia (88.5)
  • Missouri (88.6)
  • Indiana (88.9)
  • Iowa (88.9)
  • Tennessee (89.5)
Jan 23, 2023

How much does it cost to add a 10x10 bedroom? ›

The average cost of a bedroom addition is $200 per square foot. However, this number varies depending on whether you're building a new structure onto your home or converting an existing space. A new space will cost $150 to $250 per square foot, while a conversion can cost anywhere between $80 and $400 per square foot.

How long does it take to add a bedroom to a house? ›

Home Advisor gives a 3-4 month average for putting an addition to a home. This is after the planning, permits, and designing has been done. This is a good ballpark and will give you a good idea of how long till you have that wonderful space you long for.

How can I save money on my room addition? ›

15 Ways to Save Money on a Home Renovation
  1. Create and Stick To a Budget. Before we get started, I wanted to talk about what a “budget renovation” means. ...
  2. Pay Cash. ...
  3. Take Your Time. ...
  4. Do It Yourself. ...
  5. Reuse Materials. ...
  6. Balance High and Low End Materials. ...
  7. Wait For Sales Before Making Big Purchases. ...
  8. Enlist Help.
Apr 14, 2022

What home improvements do not add value? ›

However, not all of these home improvements will add financial value back to the home.
  • 6 House Improvements To Avoid. ...
  • A Swimming Pool Or Hot Tub. ...
  • Elaborate Professional Landscaping. ...
  • Garage Conversion. ...
  • Unique Wallpaper. ...
  • Sunrooms. ...
  • Bedroom Conversion. ...
  • 4 Renovation Projects To Increase Home Value.
Sep 12, 2022

How much does it cost to add 1000 square feet to a house? ›

How much does it cost to add 1000 square feet to a house? Based on a cost of $80 and $200 per square foot (£627 and £1,567 per square metre), you can expect to pay between $80,000 and $200,000 (£58,244 and £145,589) to add 1000 square feet to a house.

Is it better to add on or move? ›

Although choosing to move or remodel is more than just a financial decision, the answer is clear -adding onto the existing house beats out moving from a dollars and cents perspective.

How to build a small room addition? ›

In most cases, your contractor will be performing all of these steps.
  1. Plan Your New Room. ...
  2. Build a Foundation. ...
  3. Build Walls and Roof. ...
  4. Add Mechanical Equipment. ...
  5. Add Insulation and Vapor Barrier. ...
  6. Install Drywall and Paint. ...
  7. Finish Mechanical Installations. ...
  8. Install Floor and Trimwork.
Jul 14, 2022

How to design a home addition? ›

4 Helpful Tips for Designing Your Dream Home Addition
  1. Consider Why You Want More Space. You love the neighborhood and the location of your home, but your house is getting a bit cramped. ...
  2. Check for Obstacles and Zoning Regulations. ...
  3. Choose the Style. ...
  4. Create the Plans.
Oct 5, 2021

How much does it cost to make a room bigger? ›

According to, the average cost of building an additional room onto your house runs $80 – $200 per square foot. The discrepancy depends on the layout, your home's style and the materials used. Look at some of the most popular extra rooms and get some home addition ideas.

Is it cheaper to add on or build up? ›

The reason building out is typically cheaper is because building upward requires more labor, more materials, several permits, as well as the help of a structural engineer.

Is it cheaper to build or add on? ›

It is typically cheaper to build an addition than to buy or build a new home that equals the space of your existing house plus an addition. At the very least, the closing costs involved with selling your old house and buying the new house would push this option over the top.


1. Can I Add a Second Floor Addition?
(Armchair Builder)
2. DIY Concrete Foundation for a Room Addition or ADU
(Odell Complete Concrete)
3. Adding a BEDROOM to my House in 10 Minutes!
4. Affordable Houses: 3 Design Tips to Save
(Armchair Builder)
5. Cost to Build a House 2022
(Armchair Builder)
(Kristen McGowan)
Top Articles
Latest Posts
Article information

Author: Annamae Dooley

Last Updated: 03/05/2023

Views: 6429

Rating: 4.4 / 5 (65 voted)

Reviews: 88% of readers found this page helpful

Author information

Name: Annamae Dooley

Birthday: 2001-07-26

Address: 9687 Tambra Meadow, Bradleyhaven, TN 53219

Phone: +9316045904039

Job: Future Coordinator

Hobby: Archery, Couponing, Poi, Kite flying, Knitting, Rappelling, Baseball

Introduction: My name is Annamae Dooley, I am a witty, quaint, lovely, clever, rich, sparkling, powerful person who loves writing and wants to share my knowledge and understanding with you.