How Much Does It Cost to Add a Room to Your Home?

Being in a situation where you can add an extra room to your house can be equally exciting and challenging. As you prepare to take the first steps to expand your home, you may often have to swat away several questions that pop into the back of your mind. These doubts may range from settling down on a room size to being unsure if they are any legal hoops you forgot to jump through.

Yet, while these issues are tremendously important, ensuring you don’t go above budget will always be the most crucial thing to consider before adding a new room. So, to make sure that you remain in the green while expanding your home, we have prepared this guide to help you understand the general cost of adding a new room to your house.

Are There any Benefits of Adding a New Room to My House?

As we walk through the halls of our home more than ever, creating a place we enjoy staying in is crucial to our wellbeing. Through this room addition, you can expand the space around you, making your house feel less cramped and tight. Today, research has shown that up to 50% of people who have engaged in renovation not only enjoy being at their homes more but also feel more accomplished.

In addition to this tremendous boost in quality of life, adding a room to your house is also an excellent investment tactic that drives up the value of your home. This rise in market price means that if you choose to sell your house in the future, you can have more leverage when determining the price.

Home Remodeling Trends  Adding a New Kitchen to your House  New Home Addition Cost

In most cases, you can expect to spend anywhere between $175,473 and $356,945 (Remodeling Report, 2022) for your remodeling, but various factors will play a core role in where you land on this scale. For new room additions, our rule of thumb is always the grander the size of the project, the lighter you should expect your wallet to be after the renovation is complete. Though, this is not always the case.

As an illustration, ambitious DIY projects tend to cost much less than tiny home improvements done by contractors, as you can save cash on labor costs. However, we only recommend going the DIY route if you are confident in your ability to handle the full scope of the project. There are only a few things worse than buying a bunch of materials you didn’t need and going halfway through your renovation only to discover that you have made a catastrophic mistake.

On the other hand, if you opt for the contractor route, you should expect to pay according to the room size and the type of materials you want to use for your remodeling.

Cost of Adding a Mid-Range Room to Your Home

This form of home improvement is perfect for households that may not have tremendous space to work with but still have enough to carve out a new room in their homes. These additions are much less risky than other extravagant options while remaining a fantastic value offer. Generally, a mid-range room addition will cost an average of $175,473 to complete but can result in up to a $93,762 (Remodeling Report, 2022) increase in the market price of your home. This sharp boost in valuation represents a 53.4% return on investment.

Adding a New Bathroom

In recent years, one of the most common mid-range home improvement options has been the addition of a new bathroom. This boost in popularity is generally because the bathroom value of a house is always a core factor, that comes into play when buyers are seeking a new space.  However, bathrooms can be tremendously complicated projects to plan, so you must keep this at the back of your mind. This complexity means that picking a contractor with vast knowledge of piping and water delivery can help reduce the cost of planning and ensure the project is successful. Remember, bathrooms are one of the best ways to increase the appeal of your home when listing it for sale. Few prospective buyers will pick a house with one toilet over another with two if they are in the same price range.

Cost of Adding a High-End Addition to Your Home

If you are going for a high-end room addition, you should naturally expect to pay a more significant sum. These projects tend to be for people that want to make sweeping changes to their homes and are willing to pay more to achieve their goals. On average, a high-end room addition will set you back as much as $356,945 but will result in a $165,359 boost to the value of your house (Remodeling Report, 2022). This increase in market price generally results in a 46.3% return on investment.

Office Addition

If the main aim of your custom home additions is to improve your quality of life, then you should look no further than adding a home office. You can carry out this addition by carving out a section of your basement or transforming a spare bedroom. By creating an office in your house, you can step into the job mindset whenever you enter that room, making it easier to get into the “work zone” despite being at home.

New Floors or Sections

If your house is sitting on a vast amount of land, then the allure of increasing the physical space can often feel too much to ignore. Alternatively, you may choose to add an entirely new floor to your house, pushing up the stairwell and gaining a better view. In either case, such changes represent a massive improvement to a home and can easily lead to its value shooting beyond your wildest dreams.

However, because these projects can be exceptionally complicated, we often recommend partnering with a professional contractor and licensed architect to help you deliver your goals.

Adding a Larger Garage to Your Home

If you have recently been struggling with parking or have no space for your new car, then it can feel tempting to want to craft out a new garage. By opting for this room addition, you can create a new slot for your cars while also allowing your home to increase its market price.

Unfortunately, adding a new parking space can be highly complicated and often requires a lot of planning and hard work, as several factors will often come into play. Before biting down on your decision to build a new garage, ensure that you know the differences between a structural integrity and additional space, then decide which option will be best for your home.


Remodeling Report. (2022). Cost vs Value | National | Remodeling. Retrieved from Remodeling:

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