Thinking about turning your garage into a livable space? You’re not alone. With housing prices soaring and space at a premium, more homeowners are realizing that their underused garages could be prime real estate.

Why Convert Your Garage?

Boost property value by up to 20%

Add usable square footage without building out

Generate rental income or create a multigenerational living space

Avoid major permit hassles compared to full additions in many states

It’s one of the smartest upgrades homeowners are making right now—especially in urban and suburban markets where extra space is at a premium.

Real Costs in 2025: What You Should Expect

Garage conversions aren’t exactly cheap, but they’re often more affordable than full home additions.

Here's a quick 2025 cost breakdown:

Basic conversion (unfinished garage → livable room): $15,000–$30,000

Upgraded conversion (kitchenette, bathroom, HVAC): $30,000–$60,000

The final cost depends on your garage’s size, layout, and whether you’re adding plumbing, insulation, or separate entry.

Must-Have Features to Make It Legal (and Comfortable)

To qualify as a livable space in most areas, your converted garage will need:

Insulation and drywall

Proper flooring (concrete usually won’t cut it)

Heating and cooling system

Legal egress windows or doors

Electrical upgrades

Plumbing (if adding a bathroom or kitchen)

Make sure your contractor pulls the right permits and follows local zoning rules.

Finding the Right Contractors Near You

Not every general contractor specializes in garage conversions. For this type of project, look for local contractors with experience in ADUs, in-law suites, or garage remodels.

Use online platforms like Angi, Houzz, Thumbtack, or even Google Maps to browse ratings and request multiple quotes. In many regions, contractors now offer free virtual walkthroughs using video chat.