At The Halyard Group, we often field questions about home improvements and their impact on home value. One common query is: How much value does a garage add to a home?
This blog post will explore the factors that influence garage value, provide statistics on average returns, and offer tips for maximizing your garage’s worth. Whether you’re considering adding a garage or upgrading an existing one, we’ll help you make informed decisions to boost your home’s appeal and home value.
What Drives Garage Value?
Size Matters
The size of your garage significantly impacts its value-adding potential. A two-car garage typically adds more value than a single-car garage. Garage conversions cost between $6,020 and $27,705 on average, with factors such as the type of living space, materials, and labour influencing the cost. This substantial difference warrants consideration if you plan to build or expand a garage.
Location’s Impact
Your property’s location heavily influences the value a garage adds. In urban areas with limited parking, a garage can be a game-changer. In Canada, adding a garage can significantly boost a home’s value. For example, a two-car garage can increase a property’s value by approximately 14%—which translates to over $75,000 on an average-priced home.
Quality and Features
The condition and features of your garage can make or break its value proposition. A well-maintained garage with modern amenities (such as automatic doors, good lighting, and climate control) can significantly boost home value. Recent research shows that house hunters are willing to accept a smaller property as long as it has key amenities, highlighting the importance of quality.
Neighbourhood Standards
Your garage should align with neighbourhood standards to maximize its value. In areas where most homes have garages, not having one can actually decrease your property’s value. On the flip side, in neighbourhoods where garages are less common, adding one could set your home apart and potentially command a higher price.
Functionality and Versatility
Multi-purpose garages continue to grow in popularity. A garage that doubles as a workshop, home gym, or even a potential living space adds more value than a basic parking space. This versatility appeals to a wider range of buyers, potentially increasing your home’s marketability.
The average return on investment (ROI) for building a garage ranges from 64% to 81%, making it a worthwhile consideration for many homeowners. As we move forward, let’s explore how these factors translate into concrete numbers and examine the average value increase from adding a garage to your home.
What’s the Real Value of Adding a Garage?
National ROI Trends
Adding a garage to your home can significantly boost its value, but the exact increase varies based on several factors. According to HomeAdvisor, a garage can add between $12,750 and $33,200 in home value. These figures can fluctuate based on local market conditions and the quality of the garage construction.
Regional Value Variations
The value a garage adds to your home can vary dramatically depending on your location. These regional differences highlight the importance of understanding your local real estate market before investing in a garage addition. In areas where parking is scarce or weather conditions are harsh, a garage can become a major selling point.
Comparing Garage ROI to Other Home Improvements
When considering home improvements, it’s useful to compare the ROI of adding a garage to other popular upgrades. Interestingly, replacing a garage door offers an impressive 102.7% ROI, according to the 2023 report, outperforming many other home improvements.
Other upgrades like kitchen remodels or deck additions often yield returns comparable to garage additions when it comes to boosting home value. However, the versatility of a garage – providing secure parking, storage space, and potential for conversion into living areas – can make it a more attractive option for many homeowners.
Impact on Home Sales
Homes with well-maintained, functional garages often sell faster and at higher prices than similar properties without this feature. This is particularly true in areas where parking is at a premium or where harsh weather conditions make garage storage desirable.
When considering adding a garage to boost home value, it’s crucial to weigh the costs against potential returns, taking into account your local market trends and long-term plans for the property. A professional real estate assessment can provide valuable insights into how a garage might impact your specific home’s value.
As we move forward, let’s explore how you can maximize the value of your garage investment through proper maintenance, useful upgrades, and strategic presentation.
How to Boost Your Garage’s Value
Maintenance: The Foundation of Value
Regular maintenance preserves and enhances your garage’s value. Keep the floor clean and free of oil stains, repair any cracks in the concrete, and ensure the walls are free from water damage. A fresh coat of paint can make the space feel newer and more inviting. Don’t overlook the garage door – it’s often the first thing potential buyers see. Replacing a garage door offers a significant return on investment.
Smart Upgrades That Pay Off
The right upgrades can dramatically increase your garage’s functionality and appeal. Install adequate lighting – LED options provide excellent illumination and energy efficiency. Storage solutions like wall-mounted shelves or ceiling racks maximize space utilization.
For those in colder climates, insulation is a valuable addition. It makes the space more comfortable and can lead to energy savings if the garage is attached to the house. In areas where electric vehicles are popular, install a charging station as a forward-thinking upgrade. EV charging stations can significantly enhance the value and marketability of properties.
Staging: Showcase Potential
Proper staging highlights your garage’s best features. Clear out clutter to showcase the space’s full potential. If you use the garage as a workshop or gym, present these set-ups in the most appealing way. A well-organized tool wall or a clean workout area demonstrates the versatility of the space.
For homes without a garage, consider a garage addition if feasible. While the up-front cost might seem high, the potential increase in home value can make it a worthwhile investment, especially in areas where garages are in high demand.
Tailor Improvements to Your Market
The key is to tailor your garage improvements to your local market. What works in Toronto might not have the same impact in Vancouver. Consider your neighbourhood standards and buyer preferences when you decide on garage upgrades. With the right approach, your garage can become a stand-out feature that significantly boosts your home’s overall value and appeal.
Final Thoughts
A garage can significantly increase home value, with potential gains ranging from $12,750 to $33,200. The exact amount a garage adds to increase home value depends on factors such as size, location, quality, and neighbourhood. Regional variations play a substantial role, with some areas seeing up to a 38% increase in property value due to a well-maintained garage.
To maximize your garage’s value, focus on regular maintenance, strategic upgrades, and proper staging. Keep the space clean and organized, consider improvements like enhanced lighting or EV charging stations, and showcase its versatility when selling. These efforts will align your garage with local market demands and buyer preferences, turning it into a major selling point for your property.
At The Halyard Group, we help families in the Greater Toronto Area navigate home improvement decisions. We offer expert guidance on upgrades that can boost your home value, including garage additions and enhancements. Our team understands the local market trends and is here to help – get in touch with us to make informed choices that benefit your family and home value.
