How much value does a garage add to a house?

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.

Benefits of having a garage

Beyond the added value to your home, there are several personal benefits of having a garage.

• Additional living space: A garage can easily be converted into a spare room, den, or office. You could also add more living space if you choose to add a floor above it.
• Versatility: Garages can also function as storage spaces, workshops, exercise studios, art studios, and just about anything else you set your mind to.
• Vehicle protection: Whether it’s from theft, collisions, or the elements, a garage gives you an extra layer of protection for at least one vehicle. That’s especially useful in areas with harsher climates. (A side benefit: It can reduce your auto insurance premium as many insurers offer discounts to customers who park in a garage.)

How does a garage enhance home value?

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.

What impacts garage value?

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.

Garage type

There are two primary garage types: attached and detached. Each style has pros and cons.

• Attached garages allow you to go from home to garage while staying protected from the elements and are cheaper to build and maintain. 
• Detached garages provide more privacy and are easier to convert into a secondary living space if you ever decide.

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.

Garage size

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.

Region

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

Is a garage a worthwhile home improvement project?

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.

What to consider when converting or adding a garage

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:

• Research zoning: Before you start, make sure you actually are allowed to convert or add a garage based on local zoning laws. You’ll need building permits, certainly, but you must verify if this is even a doable project under local laws.

• Adjust your financial expectations: As we’ve covered, there’s a wide range in costs for adding or converting a garage. It’s a big project, so make sure you have enough saved to go over budget and be prepared to cut back on a few of the luxuries you might have liked to have.

• Little touches go a long way: Things like simply painting an old garage door, widening the access door, or hiding functional items like water heaters or laundry make the space seem more usable.

• Build supplemental storage: While a garage is a good way to add storage space to your home, a conversion will likely displace some items. Make sure you have a place for anything that’s displaced by a garage project.

How appraisers assess garage value

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:

• Square footage: Both attached and detached garages add to the square footage of the property, which is practically an automatic bump in value. Garages that match the style of the home are better for value.
• Area standards: If your house is the only one in the neighborhood without a garage, that can hurt your value. If all the houses around have two-car garages and you only have a one-car garage, that can hurt value. You want to be as in lock-step with area standards as much as possible.
• Garage quality: Your garage doesn’t have to be in perfect condition, but if it has been neglected and is leaking or otherwise in disrepair, it’s going to hold less value.

FAQs

Here are more details about garages and home values.

Does not having a garage devalue your house?

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.

Does renovating a garage increase home value?

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.

Should I add a garage if I don’t have one already?

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.

References

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.