How Much Value Does a Garage Add to a Home?
Gear up your home’s value and convenience with a garage addition
Highlights
Home Value Rating: 4/5
A new garage adds significant value—with the help of pros, it can truly stand out.
The average return on investment (ROI) for a garage addition is about 75% to 85%, which equals $12,800 to $33,200 in resale value.
Location, garage size, type, and quality affect the total added value.
If you’re considering making additions or improvements to a home, you’ll likely want to know how much a garage adds to home value. A garage isn’t just a functional space to park your wheels—it can increase the value of your home by between $12,750 and $33,150.
The added value of a garage depends on factors like location, size, materials, and more. Learn about this project’s return on investment (ROI) to help you determine if it’s worth adding a garage.
How Much Does a Garage Add to Home Value?
A well-designed and functional garage adds to your home’s overall appeal, which can lead to a higher home value. On average, the added value of a garage ranges from $12,800 to $33,200, amounting to about a 75% to 85% ROI.
The reason behind this value increase is quite practical. A garage provides convenience and security, making it attractive to potential homebuyers. It also offers additional storage space and the potential for various uses, like a workshop or extra living area.
Factors That Influence Garage Value
The added home value of a garage isn’t uniform. Attached and detached garages can contribute differently to value, for example. These are the top factors that drive garage value.
Location
Location plays a crucial role in determining the value added by a garage, since some areas may have higher demand for secure parking spaces.
That demand might be simply due to limited parking spaces available in the area. Higher demand could also result from climate—if you’re in a hotter region, a garage provides some shade, so that your car doesn’t become a furnace from sitting in the sun.
Garage Size
As you might have predicted, garages of different sizes add different values. A larger garage has higher value, since it may hold multiple vehicles or provide extra storage space—both of which benefit a prospective buyer.
Garage Type
There are a few different types of garages, which can contribute differently to home value:
Attached garages are directly connected to the house's main structure, sharing one or more walls. They may have a higher added value, since they are easier to access from the home and protect you from inclement weather.
Detached garages are standalone structures, separate from the main house. They have more flexibility in terms of space and use, but their distance from the house (and the higher cost of building one) might mean a lower ROI.
Built-in garages are built within the house’s main structure, either below or beside living spaces. Much like attached garages, built-in garages are directly connected to the house, but they’re built with a keener eye toward aesthetics, blending seamlessly with the home's overall design and potentially adding higher value.
Construction and Materials
Well-built garages with durable materials enhance functionality and contribute to the property's overall aesthetics.
Homeowners appreciate material quality—43% of homeowners said they consider durable and long-lasting materials the most important outcome of replacing a garage door, according to the National Association of Realtors.
To ensure the quality of your garage’s construction, make sure to hire the right pro to build the garage.
How to Estimate the Added Value of a Garage
Here are a few steps you can take to help estimate the added value of a garage to your home:
Look at comparable properties. You can research recent sales of homes with similar garage sizes and features in your neighborhood. See how properties recently sold with and without garages sold to gauge the impact on sale prices.
Consider market demand. If properties with garages are in high demand in your area, adding a garage to your home could significantly increase value. On the other hand, if all houses in your area have garages except yours, your home will likely be valued much less.
Calculate the cost of a garage addition against returns. Factor in materials, labor, permits, and supplemental features to determine the cost of building the garage. Compare this cost to the potential value increase to assess the ROI.
Take size into account. Consider how much available space you have to build a garage. Larger garage sizes can contribute more to overall value.
Get appraised. You can hire a property appraiser to assess your home's current value and estimate the potential value increase with a garage.
Is Adding a Garage Worth It?
Before building a garage, you’ll first want to consider the price. The cost of building a garage ranges from $16,540 to $40,845. Compare the total estimated cost to the potential ROI, which ranges from 75% to 85%.
Also, remember that building a garage will take time, from obtaining permits to completing construction. Consider how much time you’re willing and able to devote to the project.
On the other hand, numerous benefits come with an added garage, including more storage space, parking, protection from the elements, curb appeal, and security for vehicles and belongings. If you live in an area with limited parking space, adding a garage could be especially worthwhile.
Because of the time, equipment, and knowledge of regulations needed to build a garage, it’s best to hire a professional garage builder near you for the job.
| Pros | Cons |
|---|---|
| Increased property value | Costly investment |
| Convenient and secure parking | Time-consuming construction process |
| Added storage space | Can limit yard space |
| Enhanced curb appeal | Local zoning and permit requirements may apply |
Does Converting a Garage Add Value?
If you have ideas for transforming your garage into a cozy den or a home gym, you’ll also be happy to know it can be a smart investment. Converting a garage can add value to your home when done properly by giving your home a personalized touch and maximizing living space.
According to Cottage, a garage conversion can give homeowners up to an 80% ROI.
However, there are a few caveats to consider. Without adequate parking space, such as a driveway or street parking availability, turning a garage into a living space could actually decrease your home’s value. A garage conversion could also negatively impact home value if there isn’t much storage space.
If the conversion is done with poor workmanship, it can have systemic issues, lose aesthetic appeal, and detract from your home’s value. It’s best to hire a pro to do a garage conversion to ensure a remodel is done properly.
Finally, make sure the conversion is done with the right permits and adheres to building codes.
Frequently Asked Questions
It depends on a few factors, including market demand, location, and buyer preferences. Adding a garage may add more value when there’s a greater need for parking, whether that’s due to limited parking spaces in the area or harsher climates. Meanwhile, converting a garage to an extra room can add significant value if it’s made livable and meets specific needs, like a home office, guest room, or entertainment space.
A garage only counts toward the official square footage of a house if it’s livable. The exact legal requirements for what’s considered living space can vary by location, but heating and ventilation are often required for it to be counted. If the garage is converted into an extra room, it may count toward the total square footage.
An average two-car garage size is about 580 square feet. A common dimension for a two-car garage is 24-feet deep by 24-feet wide, as measured by the interior width. However, the manufacturing of larger vehicle sizes means many homeowners want to build bigger garages. It’s not uncommon for a two-car garage to be 30-feet by 30-feet.