Believe it or not, the lowly garage is one of the most valuable assets of a home. You wouldn’t necessarily think so, but a garage can increase your home’s value by tens of thousands of dollars. According to HomeAdvisor, a garage can add between $12,750 and $33,200 in value to your home. And that’s not to mention the extra storage space and protection for your vehicles.
If you’re considering adding a garage to your home, or fixing up an older one, we’re here to tell you it’s generally a great idea.
Beyond the added value to your home, there are several personal benefits of having a garage.
You’ll typically get back between 75% and 85% of your investment in building a garage when you sell your home. That makes sense when you consider a 2019 survey by the National Association of Home Builders found that 85% of homebuyers value garage storage.
Better yet, if you already have a garage, simply replacing the door is one of the best low investment upgrades you can make on your home. Remodeling Magazine’s 2023 Cost vs. Value Report1 found the average ROI for a new garage door was 103%. That means you could actually make money on the investment, which is virtually unheard of in home maintenance.
While a garage is a great investment, not all garages are created equal. There are a couple of significant factors to consider when assessing garage value.
There are two primary garage types: attached and detached. Each style has pros and cons.
In terms of ROI, attached garages almost always return more value. That’s because they’re typically cheaper to build or renovate than erecting an entirely new structure.
This might not come as a surprise, but a larger garage is generally more valuable than a smaller one. A two-car garage accomplishes more than a one-car garage, so it’s generally perceived as more valuable to buyers.
The biggest variance on how much value a garage will add to a house is simply location. The national average premium for a garage is about 12% — in other words, across the country houses with garages sell for about 12% more than houses without one. But, there’s a wide range of how much a garage is a exactly worth across the United States.
For instance, some of the markets where a garage is most valuable are Chicago (38% premium), St. Louis (35% premium), and Columbus, OH (24% premium). The least valuable markets include Raleigh, NC (2% premium); Austin, TX (3% premium); and Los Angeles (3.5% premium).2
The national average cost for all garages is $28,222, with a range of $16,450 to $40,260.1 As we touched on just now, the ROI will depend on the garage type, size, and location.
Generally, the least you should expect to pay for a one-car garage is $10,500. Two-car garages range from $14,500 to $40,300, and it only gets more expensive from there. A detached garage will usually cost 10% to 15% more than an attached garage.
So, is building a garage worth that investment? The average ROI of a garage addition is 64% to 81%, which equates to an estimated $20,000 to $35,000 addition on your home value. Buyers like having a garage to park their car in, especially in nastier climates. Not only will a garage add value to your home, but it will also likely make the home easier to sell.
A garage is a smart home improvement project, but some garage projects are done better than others. If you’re converting or adding a garage, make sure to consider the following items:
Adding a garage to your home is a good investment. But how do you know how much yours will be worth? You don’t, really. But you can get an idea by thinking about it like a home appraiser would. Appraisers assess garage value on three primary factors:
Here are more details about garages and home values.
If all the homes in your neighborhood have a garage and yours doesn’t, then not having a garage can actually devalue your house. You want a home that is consistent with the amenities of other homes in the neighborhood.
As garages nearly always have a positive ROI on home value, renovating a garage and making it nicer will very likely increase how much your home is worth on the market.
This depends on your circumstances and goals. If you have the financial flexibility to add a garage and you’ll get value from it, then adding a garage can be a good idea. If you’re just doing it to add value to your home so you can sell it, that’s maybe not the best reason to pay tens of thousands of dollars upfront. But if you’ll live in the home for a while and use the garage, it’s a home improvement project that pays for itself and then some in the long run.
1. Remodeling: “2023 Cost vs value report.” Accessed 11 Oct 2023.
2. Redfin: “Does a garage add value to your home.” Accessed 11 Oct 2023.
When you list with Orchard, we’ll get your home show-ready and make repairs to increase your home’s value at no upfront cost.
Orchard guarantees your home will sell, so you can buy your next one worry-free.
We provide peace of mind that your home will sell, plus list your home on the market to maximize your earnings.
Use our home sale calculator to estimate your net proceeds.
Our Home Advisors are experienced local agents who know how to sell for top dollar and help win your dream home.
All Orchard Home Advisors are experienced agents who know your local market inside and out. Request a consult today.
Did you know cash offers are 4x more likely to be chosen by a seller? Let us help you make one on your next home.
Get the most accurate free home valuation — in minutes
Orchard Home Loans shops the market to find your best rates.
A cash offer is 4x more likely to be chosen by a seller. Get qualified today.
Make a cash offer now, and Orchard will sell your old home after you move.
Tell us your must-haves to see personalized home recommendations that meet your criteria.