When finishing a basement, the possibilities are endless. Depending on what you already have and what you want done, your costs can range anywhere from a few thousand dollars to over $50,000. By breaking down your potential expenses, you can determine what your budget should look like and where you might want to opt for less-pricey materials.
What is the average cost to finish a basement?
The average cost of finishing a basement is roughly $18,400 USD, or $25,200 CAD. Basement renovation costs on average about $21,600 USD, or $29,500 CAD. Some estimates put the average cost per square foot between $35 and $55.
Like all home improvement projects, the cost of renovating an unfinished a basement depends on the size of your space, the extent of your renovations, the materials you choose and the cost of labor in your area. Here’s what you can expect to pay for three different basement remodeling projects.
Minor project: $5,000 to $24,000
Finishing your basement could be as simple as adding new flooring, installing a drop ceiling and painting walls. More minor projects won’t break the bank, but they still need to be handled with care. By picking less-expensive materials and doing some labor yourself, you can reduce the cost and still walk away with a cozy space.
But you might have to sacrifice some things—a new bathroom, laundry room or kitchenette may not be possible on a smaller budget.
Moderate project: $25,000 to $47,000
A moderate project may involve adding a few extra rooms or reworking the electrical system so you can add more outlets. With a larger budget, you can also opt for better materials.
Or you might want to spend that money on structural aspects of your basement. Installing egress windows or replacing your hot water heater may less visually apparent, but they’ll add to your home’s safety and efficiency.
Major project: $48,000+
If you have the money to spend, a major renovation will give you much more than simply finishing your basement. You may be able to add luxuries like a wet bar, home theater system or an in-law suite to truly customize your space.
However, depending on the changes you make, your property’s value might not jump up as much as you hoped. This is because major projects leave less room for the next homeowners to customize the space to their own personal preferences.
What factors determine the cost for finishing a basement?
The total cost of each component depends on the materials you choose, the cost of labor in your area and the extent of the work that needs to be done.
The following cost estimates are in USD.
By framing your basement, you’ll be able to shape your space into rooms—or at least have one large, open area that protects against the elements. But keep in mind that framing estimates typically only include the materials needed. Labor and insulation will increase the price you pay.
Drywalling is the next step when finishing your basement—and the more walls you need to put up, the more you’ll pay. Although it may seem simple, precise holes need to be cut for egress windows, doors and electric outlets—as well as any plumbing or ventilation systems that need an outlet. While material costs may be relatively low, be prepared for higher labor costs if you have an extensive basement with multiple rooms.
If you’re starting from a blank concrete canvas, the flooring you want in your basement is up to you. Prices can vary greatly depending on the material you choose:
Flooring type
Average cost per square foot
Laminate
$3 to $11
Carpet
$3 to $11
Linoleum
$3 to $7
Ceramic tile
$7 to $16
Hardwood
Up to $22
Labor costs will also vary. Some floors can be installed yourself. Others require precise work that can only a professional can do. As with all things home improvement, be sure to get a few estimates from different contractors before you settle on a price.
If your basement is old and only has a small breaker box, new wiring may be necessary to bring it into the 21st century. Materials could cost you anywhere from $8 to $13 a square foot, and labor can actually be cheaper if everything is already exposed. However, adding in a new breaker can increase the price of the job.
If you want to look up without seeing exposed pipes and ductwork, you’ll have to add in a ceiling. The cost of this step will depend on how low those pipes and ductwork hang. In general, you have three options:
Install a drop ceiling
Hang drywall paneling
Install tongue-and-groove wood
The amount you pay will depend on which material you choose and the cost of labor in your area.
Finally, there are smaller updates that can make a big difference in the comfort of your basement:
Paint
Furniture
Fixtures
Waterproofing
Ventilation
Plumbing
For waterproofing, ventilation and plumbing, check with your contractor to get an idea of how much these might cost for your space. Fixtures, furniture and paint are all up to you. If you want to save money, you can make these updates a little at a time once the major work is done.
What other costs should I consider?
Beyond the material costs for your basement, there are three other areas that will eat up your budget:
Contractor and subcontractors. Finishing a basement is a time-intensive task that requires the work of multiple professionals, including electricians and plumbers. While you can DIY some of the more basic projects, fully finishing your basement will require you to hire outside help—at an additional cost.
Permits. Any changes to the foundation or structure of your home will need to be approved by your local municipality. Permits and an inspector are necessary costs to make sure everything is up to code. If not, you may have to demo your space and start again.
Adding other rooms. If you want to add a bathroom, kitchenette or laundry room to your basement, expect your costs to rise significantly. These are expensive renovations on their own, and adding them to your basement can get more complicated when it comes to installing the equipment you’ll need to make things functional.
How to finance the cost of finishing your basement
If you’re looking for competitive interest rates, you can take out a home equity line of credit (HELOC). A line of credit allows you to take out funds whenever you need them and pay them back whenever you want or can. To secure a lower rate, the equity that you own in your home will serve as collateral. The more equity you own, the more you might qualify to borrow.
Much like a HELOC, you can use equity in your home to take out a home equity loan. While you can get competitive rates since you’re using your home as collateral, you’ll want to pay back the loan on time and in full in order to minimize any risks involving your home.
Personal loans
If you don’t want to take out equity in your home to secure a loan (or you don’t own a home to do so), you can take out a personal loan. To get a lower rate, you’ll want to take out a secured loan, which requires some type of collateral. While an unsecured loan comes with slightly higher rates than secured loans, they are the least dangerous since you don’t have to secure your loan with any collateral.
The cost of finishing your basement depends on its current condition and the change you want to make. Factors that impact your cost include the price of materials, your basement square footage and whether you hire labourers choose to do the work yourself.
Most experts recommend setting aside 5% to 10% of your budget for run-of-the-mill projects. But because there may be hidden issues in your basement—mold, mildew and structural problems are common—it might make sense to have a larger contingency. If you're working with a contractor, they should know how much you may need for the project you're taking on.
It depends on the scope of your project. If you aren't adding any new electrical systems, plumbing or making large structural changes, then finishing your basement could be relatively simple to do yourself. But if you plan on undergoing big changes, it's probably best to hire professionals to avoid injuring yourself or installing unsafe features.
Yes, you'll likely need permits if you're changing your basement's structure, electrical wiring or plumbing.
Kellye Guinan is a freelance editor and writer, specializing in consumer lending. Her writing and analysis has been featured on Bankrate, MSN and MediaFeed. She holds degrees in anthropology and German language and literature from Middle Tennessee State University.
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