How Much Does Finishing a Basement Cost? (2024 Guide)

If you look around online, you'll find there's absolutely no consensus about how much it costs to finish a basement. My advice: don't worry about the national average. The basement remodel costs in Southern California aren't really relevant if you live in Iowa, and vice versa.

Focus instead on a more direct question: How much does it usually cost to finish a basement where you live?

Based on actual projects completed by my design-build remodeling firm in the Des Moines metro area, the average cost is about $57,000 for a mid-range basement without a bar or bathroom. Throw in a bathroom and that rises easily to $80,000. If we’re also building a new bar or entertainment area, the average goes up closer to $95,000 for your basement project.

Of course, these are ballpark figures. As with all home projects, exact basement finishing costs depend on the details. Your costs could fall above or below the average. But if you're dreaming about turning your dark, damp basement that's filled with spiders into a gorgeous extension of your home's livable space, my hope is that this article will help you understand the potential costs and what a remodel may mean for your home's value.

What Should My Basement Finishing Budget Be?

When determining whether to move forward with a basement finishing project (or any remodeling project, for that matter), most people start by setting a budget. It's natural to gravitate to "what can we afford?" But before tackling that, I suggest considering a few questions that can give you a more holistic perspective on your budget.

• How can your home's existing value inform your basement finishing budget?

• How much would a finished basement and more living space add to your home's resale value?

• What other benefits, including non-quantifiable ones, would you get from having a finished space in your basement?

In the next few sections, I'll go through each of these topics and how they factor into your basement finishing cost.

Using Your Home Value to Calculate a Basement Finishing Budget

A good place to start the budgeting decision is to look at your home's estimated value before adding a basement. Calculating the value per square foot can inform how much a basement remodel should cost. That may sound complicated at first, so we'll walk through a hypothetical example.

Let's say you look up your home on Zillow, and it shows an estimated selling price ("Zestimate") of $460,000. From that, we'll subtract the value of the lot (found on your property tax assessment), which is, say, $90,000. Next, subtract the estimated value of the garage ($50,000) and driveway plus landscaping ($35,000).

That leaves us with $285,000 for the living space of your home, which includes things like siding, roofing, and the foundation. We'll divide that number by the total square footage as determined by the local assessor. In this hypothetical, that's 2,450 square feet.

Dividing $285,000 by 2,450 square feet gives us a cost per square foot of $116.32. Since we're not adding a roof, siding, or foundation, we'll use 70% of that, which is $81.42 per square foot.

Let's say you want to finish about 1,000 square feet in your basement by adding a bedroom, bathroom, living room, and bar. Multiply 1,000 square feet by $81.42 per square foot to get a rough budget of $81,420.

To verify this estimate, you can look online for homes that are similar to yours but have finished basements that resemble the one you want. You'll likely see they're selling for around $550,000.

With this budgeting method, finishing the basement extends your home's usable square footage in accordance with its present value per square foot, adding to your home's total value.

How Does a Finished Basement Affect Resale Value?

A well-executed basement finish can significantly increase your home's resale value, making it a smart investment. As I described in the previous section, using your home's current value to guide your budget can raise that value in proportion to the size of the finished basement.

Remember, too, that it's not just about math but also long-term market appeal. A finished basement can be a major selling point, enhancing your home's marketability and potentially speeding up the sale process.

Are There Other Benefits to a Basement Remodeling Project?

Beyond dollars and cents, finishing a basement can deliver a host of other benefits.

An extra bedroom and basement bathroom can give guests a bit more privacy. Instead of being a dark and foreboding place that scares your kids, your basement can become a true extension of your home for your family to enjoy. In your remodel, you have the option to create a home gym, sauna, movie-style theater, dedicated laundry room, wine cellar, art or music studio, or whatever your heart desires.

Here in the Midwest, it's a relief to have a comfortable basement to head to if tornado sirens start wailing. Finishing your basement also prompts you to be proactive about issues like flooding or sump pump installation.

What Factors Influence the Total Cost of Finishing a Basement?

The overall cost of a newly finished basement hinges on several variables, including the project scope, the condition of your existing basement, labor and materials, and compliance with building codes.

Project Scope

"Finishing a basement" means different things to different people. Project costs can vary significantly based on the types of spaces you want to add and whether you are remodeling the entire basement.

While covering up exposed pipes in basement walls and finishing the basement ceiling are central to any project to finish a basement, building out elaborate spaces can increase costs. For example, you can expect more plumbing work when adding a bathroom, wet bar, or sauna. Similarly, soundproofing, special lighting fixtures, and complex electrical work usually come with added costs.

Condition of Your Existing Basement

The current status of your basement can affect the cost of finishing it.

• Do you have a completely unfinished basement or a partially finished basement?

• Is the existing plumbing up to date?

• Is your basement dry, or will it need extensive waterproofing, basement drainage repair, or a new perimeter drain?

• How intrusive is your home's HVAC system? Do you have low-hanging heat ducts running all over the ceiling, or are they mostly tucked neatly between the joists?

• Is the floor level or rough, uneven concrete?

• Are your current stairs usable, or will you need new ones?

These types of questions can shift how much work goes into the project.

Labor and Material Costs

Having been around more worksites than I can count, I can tell you that while professional expertise isn't cheap, it's often essential for structural issues and most plumbing and electrical work. Materials are another driver of finished basement cost, and, as you probably suspect, opting for premium materials will invariably increase the project's cost.

Building Permits and Local Building Codes

You need to adhere to local regulations that can introduce additional costs for permit fees and inspections. In some cases, local codes influence the project scope, such as by requiring an egress window for a habitable space in a basement.

Professional or DIY: Which Route Should I Take?

Deciding between hiring professionals or DIY basement finishing depends on your confidence in your skills, the complexity of the project, and your budget. While going DIY can save money on labor, professionals guarantee code compliance and usually deliver more polished results.

Professional basement finishing often comes with benefits and services that you just don't get with a DIY home improvement project. For example, along with our expertise, my design-build firm provides a dedicated project manager, enhanced dust protection, a smartphone app to track project progress, and a three-year warranty.

How Can I Reduce My Basement Finishing Cost?

For any home renovation, you probably find yourself wondering, "How much does it cost and is there a way to save money?" Cutting costs without compromising quality involves strategic planning.

• Separating Must-Haves From Nice-to-Haves: Focus your budget on essential elements before splurging on luxuries.

• Getting Multiple Quotes: Comparing bids can help you find the best value for your investment.

• Considering DIY Tasks: If you have some DIY skills, assess which aspects of the project you can comfortably handle to save on labor costs.

While the upfront cost can be significant, it may help to remember that if you've wisely calculated your budget, the money you invest to finish your basement will pay off in the long run by raising the total value of your home.