How Much Does an Extra Bedroom Add to Home Value?
Beautiful Custom Bedroom Drawing Gradation Into Photograph.

Odds are when you bought your home, you made some compromises. Maybe the kitchen wasn’t exactly what you were hoping for, or it was missing that extra bedroom or bathroom you thought you needed. But even without those added features, it was still home.

Sometimes, though, as your family grows, those little compromises you made in the beginning aren’t so negotiable anymore. You might realize your kids need separate rooms or one bathroom just isn’t cutting it. In these situations, a home addition or renovation is an easy way to get the space you need.

You’ve probably heard that adding on to your home can increase its resale value. In this article, we’ll take a closer look at how adding an extra bedroom, bathroom, or living space to your home can affect its value and when it makes sense to take on this project.

Can an Extra Bedroom Really Add Value?

Having a little extra space in your home can add more than just monetary value. Creating the space you need to live comfortably in your home can be a tremendous boost to your quality of life. Having the room for your kids to spread out and have their own space might bring some quiet to your home. Adding an area where you can host a larger group of friends might give you the chance to grow your social circle. An extra bedroom might make it easier for family to visit and stay for the weekend. All of these scenarios can greatly contribute to your peace of mind and overall well-being.

Especially if you aren’t planning on selling any time soon, focusing on the personal value of your home can give you the biggest return on your investment. Making your living space work for you will probably make you happier than boosting a resale value you won’t see for years down the road. 

If you’re looking at facts and figures, though, the monetary value of your renovation will depend greatly on where you live. Typically, adding a bedroom increases the value of your home by about $40,000. It creates more practical space for families to use and makes it easier to accommodate more people. This can create significant value for larger families or people who are looking for a house with a spare room they can use as a home office, home gym, or guest room.

In the current housing market, you’ll need to keep an eye on the ratio of beds to baths in your home and how they relate to other houses in your area. 

For example, a typical single family home has three bedrooms and two bathrooms. The average family can fit comfortably in this size home, and most neighborhoods are made up of houses with this ratio. You want to stay close to the same size as the other houses in your neighborhood because that’s the size and scope buyers in your area are looking for.

This isn’t to say every family can fit comfortably in a three bedroom house. You might find yourself wishing you had some extra space even in an average-sized home. In this case, consider turning an existing space (like a basement or attic) into a bedroom. This creates more living space for your family, effectively utilizes the space you already have, and can have a positive impact on your resale value.

How Much Does an Extra Bedroom Cost?

On average, adding a bedroom to your home will cost about $30,000. This covers things like updating flooring, installing proper windows and adequate lighting, and designing the room. 

When you’re considering the profit of your renovation project, you have to take this cost into account. We mentioned a bedroom typically adds $40,000 to your home value, so you’ll have to subtract the $30,000 you put into the project. That leaves you with a $10,000 estimated profit. 

As we mentioned already, it often makes more sense to convert an existing space than to add on to your home when you need an extra bedroom. This is because it’s often easier and more cost effective to adapt your home to your needs instead of worrying about how to increase the overall value in the process.

Most people choose to convert their attic or basement into a bedroom instead of adding on. It helps to keep their homes on par with others in the neighborhood, bypasses pesky zoning and construction rules that come with building additions, and still gives them the space they need to enjoy their home.

When Are Additions the Right Choice?

When considering an addition over a renovation, there’s an important question to ask yourself. 

What is the advantage of using that extra space in the overall scope of the home?

You want to make sure that creating more square footage will give you some type of advantage and serve a clear purpose in the home. We completed an addition for a client who wanted to turn her back room into a sunroom so she could get more natural light in her home and see her garden. We made this section a two-story addition with full windows that created an enjoyable space to relax and opened up some of the attic.

Because we had already created a two-story area, the client decided they wanted to extend that concept throughout the home. The addition of the sunroom led to us converting the entire attic space into a second story on her home, effectively doubling the square footage.

This project added about $160,000 in value to the home. It went from a two bed, two bath house to a four bed, three bath home. The sunroom added natural light and a peaceful sitting area, and the second story added significantly more living space. This home can now accommodate the needs of the current owner, but is also more adaptable to the needs of future buyers.

Questions to Ask When Considering Adding and Extra Bedroom to Your Home


Adding something new to your home can be a big decision. You don’t have to make it alone. A qualified contractor can examine your home and explain your options, help you to make smart decisions, and be your partner throughout the whole process. Here at VADA Contracting, we love helping our clients transform their homes so it fits their current lifestyle. Reach out today to see how we can help you!

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