How to Add a Room to a House Cheap

Adding a room to a house can give you some extra space, such as a new bedroom for the kids or an office for your remote job. A new room can also significantly increase your home’s value. For example, depending on your area and local market conditions, a new bedroom has the potential to add $25,000 to $50,000 to your home’s value.[1]

However, adding a room to a house is a major investment, and you may worry about whether it’s worth the cost. After all, a new room costs between $22,000 and $82,000 on average.[2]

Fortunately, there are ways to get more space without breaking your budget. Below, we’ll look at how to add a room to a house for cheap.

1. Finish an unfinished 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. You'll still most likely need to pay for insulation, flooring, heating, cooling, ventilation, and any added electrical or plumbing systems.

The average cost of finishing an attic is around $40,000. However, if you need to build a new staircase, expect to add an additional $2,000.[3] More customized staircases can cost closer to $10,000.

The cost can also be influenced by how you plan to use your newly finished space. Bathrooms can be especially expensive, adding $35,000 on average if new plumbing is required. Similarly, a laundry room will set you back around $8,000 thanks to new appliances and waterproofing the floor.

2. Keep in mind that smaller rooms are not always cheaper.

While it’s true that you’ll generally pay more for a larger addition compared to a smaller one, your dollar will actually go further the more space you add. Many contractors charge per square foot. In order to make a project worth their time and effort, they’ll generally charge a higher cost per square foot for a smaller room than a larger one.

For example, a home addition, can cost anywhere from $80 to $250 per square foot depending on the size and type of addition. Smaller rooms tend to be on the higher end of that range.[4]

Size also affects price in terms of materials, since suppliers generally offer discounts if you’re buying in bulk. The fewer materials you need, the more it’s going to cost on a per unit basis. For example, insulation can cost anywhere from $0.20 to $2 per square foot.

3. Try a bump-out addition.

A bump out is extra space added on to an existing room that can create as little as two or three square feet or up to ten or fifteen square feet of extra space. Traditionally, a bump out is smaller than a standard room and is much cheaper, as you use less material and don't usually have to add HVAC systems.

A bump out can give you the extra space you need to add an office area to your existing living room or a dining area to your kitchen. You won’t need to invest in building new walls, and you may be able to avoid additional electrical work.

This type of project can be done for just $5,000 to $10,000, which is much cheaper than most home additions. On the downside, the total amount of space added will likely be minimal, so it may not have a significant impact on your home’s resale value.

4. Go with a sunroom.

Adding a sunroom is one of the cheapest ways to add an addition to a house as the walls are typically made of windows or sliding glass doors. That cuts down on the cost of constructing a room with solid walls or insulation. A simple sunroom costs around $8,000 to $11,000, although more complex ones can reach $80,000.

Companies offer DIY premade sunroom and gazebo kits that give you step-by-step directions to construct a sunroom yourself, allowing you to skip hiring a contractor and save money. You can further keep the cost of a sunroom down by omitting heating or electricity.

Getting multiple quotes is also important. Trent Seigfried, data analyst at Clever, added a sunroom to his own house and says, “My biggest piece of advice is to shop around with different contractors. We had a nearly $40K difference in quotes from different contractors for very similar rooms.”

5. Add a room above the garage.

Instead of adding space horizontally, consider adding space vertically above your home. This can be a great option if you're tight on space. It’ll also save you the cost of adding a foundation.

Adding a room above your garage can be a great option especially if you need extra privacy for an office, a guest room, or an in-law suite.A room above the garage could also allow you to generate extra income with a short-term rental.

However, a room above the garage will likely require replacing the current roof on your garage and will probably entail new wiring and possibly even plumbing. A new roof over a garage will set you back anywhere from $1,000 to $10,900 depending on size and materials.[5]

6. Develop your DIY skills.

Some of the steps of adding a new room can be done yourself with some DIY training. Plenty of videos can be found online to help you learn how to add a room to a house, including how to place flooring, put in tile, add insulation, or even how to install windows or door frames. Taking on some of these steps yourself instead of relying on a contractor can save you a significant amount of money.

However, don’t get carried away. Plumbing and electrical work should always be done by a professional. Doing it yourself could create not only a safety risk, but could require you to pay for your work to be torn out and done over. That, obviously, would defeat your original goal of trying to save money.

Even some flooring jobs, such as adding hardwood floors, can quickly become complex and overwhelming if you don’t have the proper experience. If you’re in doubt about your ability to tackle a DIY job, it may be best to contact a professional.

Adding a room for resale value? Work with a real estate agent first

If you’re adding a room to increase your home’s resale value, be sure to talk to a real estate agent first. An experienced agent will know which additions are the most in demand by buyers and which are more likely to be a waste of money. Your agent can help you choose which project will add the most curb appeal to your home based on your local market conditions.

Clever Real Estate can help by matching you with a top local real estate agent. When you partner with an experienced Clever Partner Agent, they will guide you throughout the entire selling process and help you price and market your home competitively.