Garage Conversion: How To Convert Your Garage To A Living Space

David Collins

14 - Minute Read

UPDATED: Apr 10, 2023

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Think of a garage as a part of your house that you don’t have to clean as much. It’s a great place to keep your car clear from the elements, to unload your groceries in a rainstorm, to add a secondary refrigerator/freezer, to knock the mud off your shoes and to keep your lawnmower and gardening equipment and anything else that needs storage. Oh, and at least a few times a year you should probably sweep up in there.

Of course, there are two kinds of garages: attached and unattached. An unattached garage has its merits, mainly that it does not detract from the silhouette of your house. It also has distinct advantages for some of the garage conversion projects that we’ll discuss. But most people prefer an attached garage that provides a safer, drier place to deplatform from their vehicle upon arriving home.

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Why Consider Garage Conversions?

The COVID-19 pandemic redefined “home” for people around the world. When quarantine orders meant spending more time at home than ever before, many searched for new ways to repurpose their living spaces for work, school, fitness and more.

But the long-term impact of the pandemic has also meant a housing market that is marked by high demand and low supply – leading to many homeowners choosing to renovate their existing space rather than looking to purchase a new home.

What Kind Of Space Can I Create In My Garage?

When it comes to making the most of your garage conversion, there’s no right or wrong way to transform the space. Every household has different goals and budgets, so the most important thing is choosing a conversion project that suits your family’s lifestyle.

Think about the frequent frustrations you experience at home to pinpoint your most urgent needs. Are you constantly wishing you had a private space to work remotely? Do you need a larger space to accommodate all your children’s playthings? Have you always dreamed of having a space dedicated to creating art? Let your imagination run wild but choose the project that is going to have the biggest positive impact on your day-to-day life.

15 Garage Conversion Ideas

1. Accessory Dwelling Unit (ADU)

RHB Assets From IGX: Modern ADU concept rendering with a green lawn.

If you’re looking into an income-generating conversion or have family members in need of a place to live, renovating your garage into a new living space, or an ADU, may be appealing. An ADU is an independent living space separated from the main home, sometimes referred to as a guest house, a granny flat or an in-law suite.

But to be considered an ADU, the building must be complete with a fully functional kitchen, full bathroom and living area. Be forewarned that this is an expensive project that can cost hundreds of dollars per square foot. However, if you have aging parents who need to be closer for health reasons or an adult child who can’t find another place to live, this project could be a good solution.

2. Living Room

Contemporary living room with various mirrors on wall and velvet couch and side chair.

The term “living room” conjures images of a traditional salon with a sofa and armchairs for sitting with visitors, but for modern living it just means expanded multifunctional space. For homeowners who love to host large gatherings and get-togethers, a designated space for entertaining might come in handy – especially if your house feels small or cluttered with all your belongings. It can also provide respite for kids who want their own space as they grow older.

3. Home Office

Home office with wood paneled wall, dark grey accent wall and grey velvet tufted office chair.

The COVID-19 pandemic had perhaps no greater impact on Americans’ home life than the sudden necessity for making a home office where none existed before. Hundreds of thousands of office workers were asked to do their jobs from home for months – many of them permanently. To find the quiet and separation required to focus on work, many created a makeshift office in their garage.

Converting your garage into an office space can be a great way to get the extra breathing room you need while also providing a get-things-done ambience perfect for taking phone calls or responding to emails. You may have to make some adjustments to ensure there is enough electricity and an adequate internet connection. In some cases, heat or air conditioning can be supplied by inexpensive space heaters or window AC units.

4. Home Cinema

RHB Assets From IGX: Elegant screening room in a garage conversion with comfortable seating.

Have you ever dreamed of experiencing the magic of the movies in the comfort of your own home – or at least adjacent to it? If so, consider converting your empty garage into a home cinema. This will likely be an easier remodel than some of the others on this list, as there’s no need for windows in the space.

And you don’t have to go all out to create a fun, comfortable space that all film fanatics will love. A large flat-screen television, a cable or internet hookup, a few couches or recliners and some snacks are all you need to stream your first flick!

5. Family Playroom

RHB Assets From IGX: Playroom in a converted garage featuring bright colors and ample storage.

While some homeowners dream of an adult oasis, others might prefer to repurpose their garage space with a family playroom that can excite the entire family. With not much retrofitting, a garage can provide plenty of free space for young kids’ toys or a game room for teens.

6. Home Gym

RHB Assets From IGX: Home gym setup in a garage conversion with exercise equipment.

For many, the time and effort it takes to get in the car and drive to the gym is such a deterrent that they will skip their workout. A home gym removes that barrier and saves the commute time as well – a plus for personal health.

Turning your garage into a home gym requires zero to very little expense. Buy workout equipment as you go – it can often be found at a reduced cost used. For extra motivation, purchase a wireless speaker and play music from your phone. Add a television and binge-watch a favorite television series as you step off the calories.

7. Expanded Kitchen

RHB Assets From IGX: Rustic kitchen with wood beams and exposed brick walls.

If your existing kitchen feels limiting and you don’t want to renovate the main structure of your home, you might consider turning your garage into your dream kitchen. A garage kitchen often works for foodies and people who run a catering business. A large garage doorway makes it easy to bring in large kitchen equipment, and a concrete floor can withstand the wear and tear of a bustling kitchen. Be aware, however, that converting your garage to a kitchen can be just as expensive – if not more so – than renovating your existing kitchen.

8. Art Studio

Young man in a garage converted into an art studio with a desk and papers.

If you consider yourself an artist – particularly one who understands the struggle of finding storage for supplies or a dedicated space for your pieces to dry – then consider transforming your garage, or at least a part of it, into a studio.

With plenty of storage space for canvas, easels and other equipment (as well as access to fresh air to flush out any lingering paint fumes), a converted garage could be the perfect creative space. And if your artistic process gets a little messy at times, better it happen in the garage than the living room. 

9. Music Room Or Recording Studio

RHB Assets From IGX: Garage converted into a band practice space with musical instruments and equipment.

You’ve heard of garage rock, but in this case, we’re taking it literally. If there are musicians in your home, take advantage of the unique space a garage conversion could offer.

With some DIY know-how and a bit of elbow grease, you can easily soundproof your space for future jam sessions or even look into creating an in-home studio, depending on both your budget and your musical aspirations. You may need to add supplemental electrical outlets as well as make sure they meet code requirements for safety.

10. She Shed Or Man Cave

RHB Assets From IGX: Cozy and inviting she-shed interior with comfortable furnishings and decor.

If you’re in need of some good, old-fashioned alone time, converting your garage into a man cave or she shed could provide you with just that. There are many directions you can explore with this, but this space is all about you, so design it with your hobbies and interests in mind.

11. Guest Suite For Family Or Renting

RHB Assets From IGX: A large guest bedroom with a comfortable bed.

If you have an older child who needs some extra space, a family member or friend who needs a place to live for a while or just a separate space for overnight visitors, it can be relatively easy to convert your garage to a living compartment. If the garage is not connected to the home’s heating/cooling system, you could use space heaters and a portable AC unit.

Converting your attached or unattached garage to an apartment for rent is also possible and can bring extra income, but be aware that it will require its own plumbing and electrical to provide a functional kitchen and a full bathroom. Construction costs for these amenities can easily run into the thousands of dollars.

12. Sunroom Or Gardening Sanctuary

RHB Assets From IGX: An indoor herb garden with various potted plants.

Your garage can convert to a sunroom – provided it gets plenty of exposure to the sun’s rays. Not many garages have enough windows to qualify as a sunroom, but windows can be added.

If it can’t be a sunroom, however, it can still be converted to a gardening sanctuary with some investment. You’ll need grow tables with planting trays, soil and other tools. Mostly, though, you will need lots of grow lights, which provide the kind of light plants need to conduct photosynthesis. These can be expensive to purchase, and your electric bills will most likely go up.

13. Laundry Room

RHB Assets From IGX: Clean and organized laundry room with clothes hanging on a dryer rack.

If your house does not have a laundry room and you’re tired of going to the laundromat, consider installing a washer and dryer in your garage. You will need to plumb the washer for water intake, and it will need a basin to drain, such as a laundry tub, which will also have to tie into your home’s drainage system. Be sure to get a few estimates from plumbers on the cost of this work before you buy the appliances. If you live in an area where it gets cold in winter, you should ask your plumber how to protect your new water lines from freezing.

14. Dog Den

Dog near modern style dog house.

If you would love to have a dog but hesitate because of shedding or a family member’s allergies, having a garage be the solution. You can dedicate just a portion of your garage to a cozy, safe space for your four-legged friend. If you have a fenced-in yard, have a carpenter carve out a two-way doggie door so your pet can go in and out as he pleases. Just be sure the space remains warm enough on cold nights by providing a comfortable bed and, if necessary, an electric space heater.

15. Custom Auto Garage

Large garage with bikes and tools.

Home car mechanics can turn their garage into … a garage! If the space is tall enough, it might accommodate a car lift that allows easy access to the underside of the vehicle. Other equipment to add might be tools, an air compressor and, if you’re able to pull the car out to your driveway or yard, a power washer.

Or, monetize the space by offering it for car storage. People with custom cars will pay for monthly storage rental. You’ll have to be sure that your homeowners insurance covers any damage to the car when it’s on your property, whether from natural causes, fire, theft, etc. You’ll also have to assume the responsibility of making sure that no harm comes to the car from human error (scratches, dents, etc.) – otherwise you might be sued.

The Pros And Cons Of A Converted Garage

Pros

  • Additional space: There can be any number of reasons that some extra, private living space can be beneficial to a family that finds itself bumping into one another a little too frequently.
  • Provide care to family members: The cost of housing an aging or ailing family member at an outside assisted living facility can be prohibitive, if not downright unrealistic. Building out space in your garage might be expensive to start but can provide long term savings.
  • Can cost less than a home addition: If your growing family is busting the seams of your house, but you like where you live, sometimes the best answer is to build an addition. Renovating a garage space into living quarters can sometimes save money because it already has four walls and a roof. It will still be expensive, especially if you want to add a bathroom and/or kitchen facilities.
  • Generate rental income: Converting your garage to living quarters can also generate income if you rent to an outsider. If you’re not comfortable with that person using your bathroom and cooking facilities, however, you’ll have to have those installed in your garage space. This can be a very expensive project, but the income generated over time might make it worth the investment.

Cons

  • No indoor parking: When you add garage space to your living space, you lose indoor parking, which may be a larger inconvenience to people who live where there is frequent frost and snow in the winter.
  • Potentially fewer offers when selling: If you’re uncertain how long you’ll stay in your home and believe you will sell at some point, a converted garage might reduce the attractiveness of the house to some buyers who prefer a traditional garage.
  • Costs of homeownership may increase: Since it could be considered additional square footage to your house, a converted garage could trigger increases in your homeowners insurance and property tax.

How To Convert A Garage

Some garage conversions, such as creating a doghouse or installing some exercise equipment, can be relatively simple and possibly even DIY projects. But if you’re planning to convert the space to additional living space for your home, the project can be complex and require multiple considerations.

Research Legal And Permitting Rules First

Using your garage for housing or income purposes might be prohibited in certain areas, so make sure to check with your local municipalities to understand the rules impacting your residence. You should also be aware of your area’s zoning regulations, which can differ from local ordinances. Zoning policies sometimes present additional hurdles for converting your garage, so it’s important to be educated and prepared.

You should also be prepared to face a lengthy permitting process, even if your planned conversion isn’t prohibited. And if a zoning variance is required, the process could take even longer and might even require legal representation. Having a home in a historical district or belonging to an HOA can also potentially disrupt your plans.

Consider Your Available Space

Not all garages are equal. Understand these terms before you begin a garage project.

Single-Car Garage Vs. Two-Car Garage Conversions

Depending on your specific renovation plans, a single car garage might need expanding to create a complete living space, especially if you live in an area that mandates the minimum size of living spaces. Having to expand the garage would add considerably to the overall cost of the project, so this is an important consideration to make when you’re choosing an intended purpose for the space.

Integral Vs. Attached Vs. Detached Garages

An attached garage is connected to the house by a doorway. It can sometimes detract from the silhouette of the house because of its large door or different roofline. In recent years architects have taken care to incorporate the attached garage more seamlessly with the aesthetics of the house – these are referred to as integral garages. Because these spaces are already embedded in the home, they’ll be the easiest and cheapest to convert. Attached garages – which only share the roof and outer walls of your home – will run you a bit more. Detached garages will be the most expensive of the three.

Hire A Contractor Or DIY

You can always save money on home projects by doing it yourself (DIY). Whether or not this is a good idea will depend both on your skills and the complexity of your renovation plans. If doing it yourself means risking dangerous and costly mistakes, you might save more money in the long run by hiring a professional contractor to do the job. The more complex conversions of a garage to living space for your home can include many or all the following:

  • Making any repairs (such as fixing garage floor cracks)
  • Insulating the walls
  • Adding electrical outlets or lighting fixtures
  • Tying into the home’s water source and drain lines
  • Adding plumbing fixtures
  • Installing kitchen cabinets, counters and appliances
  • Installing floor covering
  • Replacing or insulating the garage door
  • Adding drywall
  • Hiding functional areas (such as a furnace or water heater)
  • Creating window openings and installing windows
  • Improving the exterior’s appearance (including the walls and landscaping)

Plan For Additional Insurance Coverage

Because a garage conversion increases your living space, it will also increase your insurance needs – especially if you plan on housing people or expensive equipment and appliances in the repurposed space. Unless you’ve arranged for additional coverage, any damage that could come to these pricey features in your converted garage are unlikely to be covered by a standard homeowners insurance policy.

Garage Conversion Costs And Financing

Because a complex garage conversion can easily cost thousands and even tens of thousands of dollars, you should know how you are going to pay for the project before you ever swing a hammer. Here are some options:

  • Tap into your savings: As long as you’re okay with putting off that big vacation this year to renovate your house, using your own savings doesn’t cost you interest like a loan will. If the project is so big it might wipe out your savings, however, you should strongly consider financing.
  • Use your home equity: A home equity loan is a type of second mortgage that allows homeowners to borrow against the equity in their home, using the house as collateral to secure the loan. You can draw on the amount your lender is willing to allow and pay the loan back monthly with interest.
  • Get a cash-out refinance: A cash-out refinance is a type of refinance that allows homeowners to borrow money against the equity they have built up in their homes. With a cash-out refinance, the homeowner takes out a new mortgage that is larger than their current mortgage balance. The existing first mortgage is paid off and the difference is disbursed to the homeowner.
  • Take out a home improvement loan: Much like a traditional mortgage loan, a home improvement loan involves borrowing a set sum of money and paying it back to the lender in monthly installments.

FAQs On Garage Conversion

How much does a single car garage conversion cost?

Depending on the scale and ambition of the project, a garage conversion can cost anywhere from hundreds of dollars to tens of thousands. The cost of a typical renovation runs between $5,700 and $24,300, with a U.S. average of $15,000.

How much value does a garage conversion add?

According to HomeAdvisor, a well-done garage conversion that seamlessly incorporates the added space into the home can add as much as 80% return on investment. In other words, a $20,000 renovation could add $16,000 to the value of your home. Be aware, however, that some buyers would rather have the parking space. In densely populated cities an off-site parking space can cost car owners hundreds of dollars a month.

Does home insurance cover a garage conversion?

Most homeowners’ insurance policies cover the structure and contents of your attached garage. If the garage is not attached to your home, it may be considered an outbuilding and require additional coverage or a separate policy. If you have spent money to renovate your unattached garage and have valuable contents within it, you should check with your insurance representative to make sure the garage has sufficient coverage.

How can I heat my converted garage?

Options for heating a formerly unheated attached garage include radiant in-floor heating, which can be very expensive, electric baseboard heating (most likely the cheapest option) or a tie-in to the house’s HVAC system, which would require installing additional ductwork. If the space is only to be used as a home gym or dog kennel, you may be able to get away with relatively inexpensive electric space heaters.

What do I do with my driveway after a garage conversion?

Keep it – it’s your new parking space. You could even consider having a carport built at the top of your driveway for a little extra protection from rain and snow. It doesn’t have to be anything more than that, but there are more creative driveway ideas to consider.

The Bottom Line: Your Garage Can Serve A Multitude Of Purposes

As long as you can live without a dry and convenient place to park your car and store your gardening supplies, converting the space your garage occupies into the living part of your house can add practical and financial value to your home. If your project is more complex and involves connecting the garage space up to utilities, you should probably bring in a contractor to discuss the entire project as a first step.

Part of planning well means making savvy financing choices. A cash-out refinance is one of the most popular ways to fund home upgrades among homeowners who have had time to build up equity in their homes. With a cash-out refinance, you will typically be paying a much lower interest rate than you would with any unsecured loan, such as a personal loan.

Our bottom line? If you’re ready to get serious about a garage conversion, you might just want to get a cash-out-refinance today.

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David Collins

David Collins is a staff writer for Rocket Auto, Rocket Solar, and Rocket Homes. He has experience in communications for the automotive industry, reference publishing, and food and wine. He has a degree in English from the University of Michigan.