Expanding your home with an addition can be a smart move if your family is growing. It gives you the extra space you need without the financial or time implications of a complete move, but additions don’t come cheap. Oftentimes homeowners are surprised that the cost of an addition can near the costs of a new home construction, depending on the scope of work. Looking at the most common projects that drives up addition costs will help you plan and budget the project wisely, and help prioritize the most financially-worthwhile parts of your remodel, without overspending on small details.
In this post, we’ll run through some of the average costs for different types of home additions, and look at which addition types have the highest value retained after completion.
Average Costs of Different Additions:
Here are some of the most frequently constructed residential additions, along with their typical size and cost range:
Master Suite Addition
200 – 600 sq ft
$125,000 – $375,000
Family Room Addition
400 – 700 sq ft
$200,000 – $350,000
Attached Garage
400 – 1000 sq ft
$100,000 – $170,000
Sunroom Addition
100 – 500 sq ft
$50,000-$250,000+
Basement Finishing
500 – 1000 sq ft
$70,000 – $125,000
Second Story Addition
500 – 1000 sq ft
$250,000 – $450,000
(Updated Pricing as of November 2023)
Factors That Influence Costs
Many variables impact what you can expect to pay for your home addition. These include:
Cost Breakdown of Home Additions
To budget accurately, understand how addition costs break down:
Materials and Fixtures
Building materials, appliances, lighting, and hardware account for 35-50% of the total budget.
Labor
Skilled contractor fees make up 25-40% of the costs. Complex projects take more time.
Permits and Fees
Local permit costs, inspections, and utility fees add 5-15% to the total.
Design and Project Management Costs
Architects, engineers, and contractors charge 10-20% for design work and overseeing the addition.
Financing Your Home Addition
There are several options for funding your home addition project:
Tips for Managing Home Addition Costs
Use these strategies to keep your home addition on budget:
Adding extra living space through a home addition allows you to comfortably accommodate your family’s growing needs. While additions require major upfront investment, the increased enjoyment, functionality, and potential return on investment make it worthwhile for many homeowners. Understanding the pricing factors and utilizing budget tips can help keep your home addition affordable.
