How Much Does Home Addition Cost?

[BLOG] Published: 2021-09-13 - Updated: 2023-05-31

How Much Does Home Addition Cost?


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How Much Does Home Addition Cost?

Home addition costs vary depending on the type of room to be added. The prices can range anywhere from $20,835 to $72,552, or an average of $46,498. These prices are however dependent on the kind of space you’re adding, the materials, labor size, and complexity. 


If you want to increase your living space without having to move into a new home, then you’re at the right place. At Smart Remodeling LLC, we have a team of experienced professionals who are ready to give input on your home addition ideas and help you with the overall cost estimation as well. When you choose to work with us, you’ll be guaranteed accurate home addition costs, which will help you budget accordingly.

Factors to Consider During Home Addition Cost Calculation

Typically, a home addition means adding an entirely new space within a home, which will involve expanding to the original home footprint. At Smart Remodeling LLC we will advise on the best way to have the home addition done. Talk to us for more insights because the additional room can be built on to the side of the house or as an added floor. (UpNest, 2021)

Size and Space of the Home Addition

The bigger the space, the higher the price and with this in mind, any construction project and in this case any home addition, much of the cost will be determined by the total size. HomeAdvisor gives home addition costs a range from $80 to $200 per square foot. While adding a spare room is a common project, the average cost for a 20-foot by 20-foot room ranges from $32,000 to $80,000. (BobVila 2021)

The table below gives you an idea of what to expect in terms of the cost per square footage for a home addition.

Square Foot of A Room

Average Total Cost

12 x 12

$11,520 - $28,800

10 x 12

$9,600 - $24,000

20 x 20

$32,000 - $80,000


$32,000 - $80,000


$40,000 - $100,000


$48,000 - $120,000


$80,000 - $200,000


Labor and Permit Costs

During a large project like a home addition, there can be no way around handling labor costs. These costs can make up 30 to 50 percent of the total price. Labor costs will consist of paying for experienced technicians, roofers, electricians, and painters, depending on the type of home addition being done. A home addition can be a huge project that will require building permits from local authorities. Our professional contractors at Smart Remodeling LLC will ensure they obtain a permit to make sure the project can proceed as planned. The permit will require you to pay between $400 and $1,850 for permits.

Materials to Be Used

There are different types of materials that include: concrete, ductwork, roofing materials, plumbing, wood framing, drywall, paint, electrical wiring, and many more. There is much more than the basic building materials. These include flooring, exposed beams, lighting, fixtures, windows, and doors which might need customization that also need to be added to the budget. As a home builder, it is important to note that the material comes with an associated cost that is based on current market prices for different regions.

Building Up vs. Building Out

Smart Remodeling Contractors know very well that there are two directions you can build when adding onto a house either up or out. We will advise our clients that building up turns out to be less expensive and could be the only option on a smaller property. For instance, if your house has an existing garage, then building on top of it is more economical because the foundation is archetypally built to withstand more weight. On the other hand, building out is usually more expensive since a new foundation will need to be laid. Structural issues may arise and will need to be addressed which will ensure the roofline and walls remain strong with the new addition. Our contractor will advise on which option works best for your property and budget.

Here is a quick comparison of the two according to HomeAdvisor:

Building Up

Building Out

Less expensive

More expensive.

This involves adding an entire second-story to a one-story home.

Entails adding a room at ground level and extending the perimeter outward.

You’ll need to add a new staircase to your home.

You’ll need to pour a new foundation for the new room.

Due to the extra weight of the second story, your contractor may need to strengthen the existing foundation.

You will lose more property space including the yard.

Some towns have rules regarding the height of homes, check to see if your town does too.

Your contractor may have to get a zoning variance to complete the entire project.


Common Types of Home Additions and Their Costs

Home additions come in all shapes, sizes, and types which also determines the cost. It is also important to budget an extra 10%-20% in the event your contractor runs into any situation that requires additional costs. Below are some common home addition types as well as the cost estimates from HomeAdvisor:

  • Adding an extra room
  • Adding a Garage
  • Adding an in-law suite
  • Adding a Second Floor


Adding An Extra Room

The most common home addition project is adding a room which can either be a bedroom or a living room. The average cost of a 20×20 home addition will range from $80 – $200 per square foot. Therefore, the average addition of an extra room can range anywhere from $32,000 – $80,000 per square foot.

Adding a Garage

A garage can be either attached or detached. Should you decide to go for a detached garage addition; the cost in Houston will cost more because your contractor will have to build the four entirely new walls and the rest of the structure from scratch. Going for a simple detached garage, with no electrical work or plumbing, will cost about $9,000 to $12,000. However, if you want a garage with a living space and amenities, you will pay $18,000 to $20,000 on average.   

Adding An In-Law Suite

In Houston, an In-law suite is usually about 600 to 750 square feet and will include a living space, kitchenette, bathroom, and a small laundry area. Most homeowners spend between $78,000 and $135,000 for a fully detached suite.

Adding a Second Floor

A home addition that includes a second story will also include adding more than one room. A second-story addition can cost about $100 to $300 per square foot but could run up to $500 if the job turns out to be complex. For an additional 1,000 square feet of space, the cost can go up to $150,000 to $200,000. (Ownerly, 2020)

ProTip Task: Turning an attic into a liveable second floor is a much more affordable option. The average cost is $80,000 which is a much lower home addition cost.

Type of home addition

Average Cost

Adding an extra room

$32,000 – $80,000

Adding a Garage

$18,000 to $20,000

Adding an in-law suite

$78,000 and $135,000

Adding a Second Floor

$150,000 to $200,000


Will the Addition Add Value to Your Home?

According to Home Guide, most additions add value and offer a 50% return on investment. Home additions or renovations will have a better return on investment than others. Generally  

  • An extra bedroom recovers 50%
  • The second bathroom recoups 60%
  • In-law suite recovers 100%
  • A two-story addition recoups 60%

The best way to make sure you have a return investment is to ensure your home fits into the context of the neighborhood. Adding a second floor in a neighborhood with one-story homes may not realize a good return. A home addition will add oomph to your home, but if the price is on the higher side compared to other similar homes, you won’t see as great of a return on investment. (Home Guide, 2020)

ProTip Task: To get an idea about which additions and features will best help your property value, speak with a real estate agent or home appraiser.

How Do You Save Money On Home Addition Cost?

Home addition costs can change from affordable to really expensive depending on the addition being made. At Smart Remodeling LLC, we strive to give you the best in your home addition. We will walk the journey with you to guarantee an equal return on your home investment. Our experienced contractors will be sure to help you with the addition that you need as well as the budget for the same. Here are some suggestions we have to save money on your home addition cost:

  • Think through building up rather than out. It would be best to have our contractors review your house to determine whether your current floor plan will save you money with a build-up rather than a build-out.
  • Keep your addition simple but stylish. Choosing expensive materials would be the fastest way to blow up your budget. Other simple methods are available and would work just as well, it is best to choose what suits your style and your budget.
  • Stick to decisions made. Constantly changing your mind or a delay in making decisions can easily rack up extra costs. Our contractors typically handle many tasks to ensure the project runs smoothly, therefore requesting order changes like choosing different roofing after the first type was ordered, will become costly. (Ownerly, 2020)

ProTip Task: Avoid excavation costs and the need to pour a new foundation by building up instead of out.

Are You Ready to Know the Home Addition Cost in Houston Texas?

Smart Remodeling LLC is your go-to company for home addition and overall costing. We offer very competitive pricing for our services, products as well as labor. Our certified professionals will be with you every step of the way. We strive to give you the best in your home addition and help you save money where necessary.


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