By: HouseLogic.com
Published: January 22, 2010
On average, a garage addition recoups about 60% of the investment, with the highest rates of return on a basic rather than an upscale job.
Building a garage addition is a great way to gain comfort, convenience, and storage space. It´s also a reasonably good investment. According to Remodeling Magazine´s latest Cost vs. Value Report, a home owner who invests the national average of $60,600 in a freestanding two-car garage addition can expect to recoup almost 60% of the cost at resale—a higher rate of return than an added-on bathroom or sunroom, and on par with a new family room or master suite.
A garage addition makes especially good economic sense in the south-central portion of the country, where home owners can expect to get back almost 66% of the cost of a midrange project, while spending about 13% less than the national average. Returns tend to be lowest in the country´s midsection. In Cleveland, for example, the same garage recoups less than half its cost.
As a general rule, you´re likely to recover a higher percentage of your investment if you build a relatively basic garage—one with open walls, an unfinished concrete floor, and shelves for storage—rather than one with interior drywall and trim, an epoxy floor coating, and designer storage solutions. Such an upscale project runs a national average of more than $90,000 and returns around $48,300, or about 53.6%, of its cost.
But there are financial considerations to adding a garage that go beyond resale value. Protected from the elements, your vehicles will stay in top shape, which could make them more valuable when you sell them. If you include workshop space, you´ll be able to do many home repairs yourself, saving on the cost of pros. And if you outfit the garage so that it´s easy to access stored items, you can save leftover materials, reducing the cost of future projects.
National average cost, 26 x 26 ft. midrange garage addition:
Job cost: $60,600
Resale value: $35,900
Cost recoup: 59.2%
National average cost, 26 x 26 ft. upscale garage addition:
Job cost: $90,100
Resale value: $48,300
Cost recoup: 53.6%
Regional info:
New England
Middle Atlantic
South Atlantic
East South Central
West South Central
East North Central
West North Central
Mountain
Pacific
As a general rule, you´re likely to recover a higher percentage of your investment if you build a relatively basic garage—one with open walls, an unfinished concrete floor, and shelves for storage—rather than one with interior drywall and trim, an epoxy floor coating, and designer storage solutions. Such an upscale project runs a national average of more than $90,000 and returns around $48,300, or about 53.6%, of its cost.
But there are financial considerations to adding a garage that go beyond resale value. Protected from the elements, your vehicles will stay in top shape, which could make them more valuable when you sell them. If you include workshop space, you´ll be able to do many home repairs yourself, saving on the cost of pros. And if you outfit the garage so that it´s easy to access stored items, you can save leftover materials, reducing the cost of future projects.
National average cost, 26 x 26 ft. midrange garage addition:
Job cost: $60,600
Resale value: $35,900
Cost recoup: 59.2%
National average cost, 26 x 26 ft. upscale garage addition:
Job cost: $90,100
Resale value: $48,300
Cost recoup: 53.6%
Regional info:
New England
Middle Atlantic
South Atlantic
East South Central
West South Central
East North Central
West North Central
Mountain
Pacific
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