8 Home addition ideas to elevate your living space

Adding a room to your home doesn’t need to be complicated. Find out how you can expand or enhance your space with these 8 home addition ideas.

Vivian Tejada
April 3, 2024

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Home additions can help you accommodate a growing family, increase property value, or simply allow you to be more creative with your space. In most cases, adding space to your home means increasing square footage, which can benefit homeowners interested in selling in the future. 

Larger properties with multiple areas appeal to buyers because they add utility to a home. As a result, sellers can often ask for higher selling prices. Even if you never sell your home, you and your family can still enjoy the upgraded space. 

In this blog, we’ll discuss common home addition ideas, costs, and the possible return on investment (ROI) should you sell. 

8 Home addition ideas to enhance your space

Whether you’d like to welcome in natural light through a sunroom or bump out an existing room to make it bigger, we’ll cover 8 creative home expansion ideas to choose from.


A sunroom is a beautiful house addition that can elevate even the most modest property. Many homeowners add a sunroom to the back or side of their house to supplement their living room or dining room.

Since most sunrooms can’t be used year-round, they’re not considered permanent living structures and don’t abide by the same local building codes as other home additions. As a result, a sunroom addition can be easier to build and more cost-effective than other home expansions, such as adding a balcony or building an ADU. 

The least expensive option is to purchase a prefab sunroom for $5,000. However, most homeowners spend anywhere between $8,000 and $11,000 for a sunroom with a simple design. Professionally installed sunrooms can range from $25,000 for a three-season to $45,000 for a four-season. 

Average ROI: 50-60%


If you’re looking to build your backyard oasis, a deck is a valuable addition—especially in a warm climate. You can build a simple deck by installing a grade-level platform about an inch above the ground or a multi-tiered deck with steps, railings, and pergolas. 

The cost of installing a deck depends largely on deck materials, square footage, and the labor required for the project. Softwood decks made of pine and cedar are more cost-effective than exotic wood or composite. On average, building a deck costs between $9,000 and $20,000, with most homeowners paying around $14,000 for a deck installation. 

Average ROI: 60-70%


If you prefer to extend the front part of your home, building or enclosing a porch is a great option. However, similar to decks and sunrooms, porches are not considered additional square footage unless electrical wiring is built in.

Porches create extra space to gather or enjoy activities while adding strong curb appeal to your home. Building a 200-square-foot porch costs about $14,000. However, depending on materials, labor, and porch size, you can spend anywhere between $4,800 and $24,000.

Average ROI: 74-84% 


Adding a balcony is another beautiful way to enhance your home’s functionality or curb appeal. Similar to porches and decks, balconies offer a seamless transition between indoor and outdoor areas. Depending on the size, a balcony can provide the opportunity for dining, working outside, growing a garden, or simply relaxing. 

The cost of installing a balcony depends on size, labor, and materials. On average, installing a balcony costs about $35 per square foot, totaling about $3,500 for a small balcony or $12,000 for a large balcony. 


If zoning laws permit and you have enough space in your backyard, you can explore building an ADU (Accessory Dwelling Unit) or guesthouse on your property. An ADU can be used as a rental or in-law suite, whether it’s attached to your home or not. 

Detached ADUs, also known as DADUs, have separate kitchen appliances and bathrooms, meaning they need their own wiring, plumbing, and HVAC service. As a result, DADUs tend to be more expensive than ADUs. However, they are more attractive to renters who prefer greater privacy.

On average, building an additional dwelling unit costs between $200,000 and $400,000. However, depending on the size of the unit and its location, you may be able to build an ADU for $100,000. While it is a pricey home addition, an ADU can create a passive income stream for years to come. 

Average ROI: 30-35%

Garage extension

Expanding your garage is a strategic way of converting existing space into a new room. In addition to using a garage as extra storage, you can turn it into a workshop studio, home gym, or even rent out your garage space. An important thing to note about a garage extension is that it can only count as additional square footage if it’s not used as a garage. 

Converting a garage into usable living space usually costs between $6,000 and $26,000, depending on the type of conversion.

Average ROI: 64-81% 


Adding a room to your home doesn’t have to be difficult. If you’re interested in creating more space inside your house, consider bumping out a wall within an existing room. Also known as a micro addition, bump-outs are much more affordable than building a new room because they don’t require additional support. 

Since kitchens are often seen as the heart of a home, a bump-out is a popular kitchen remodeling project

The cost of a bump-out addition depends on its size, which can be 2-15 feet deep. On average, bump-outs cost anywhere between $1,700 and $18,900. Bump-outs are great room addition ideas for small homes. 

Average ROI: 23-30%

Build a second story

You can take expanding indoor space a step further by adding a second story to your home. While this is a major home addition, a second floor allows you to add significant square footage to your home by creating extra bedrooms, a home office, or another living space. 

Home addition costs vary widely, ranging between $80,000 and $600,000. You’ll need to discuss a story addition with reputable contractors and architects to ensure your home’s foundation can sustain an additional level. 

Average ROI: 65%

Other considerations for expanding your home

Before you decide to move forward with any kind of home addition, there are a few things to keep in mind. 

Zoning laws

Zoning laws can regulate much of what goes into a home addition project, green space, yard space, electrical wiring, water drainage, and septic systems. Depending on where you live, you may also have limitations around property height or the number of units on your lot.

Frequently, home additions and other major changes to the property require permits with your municipality. Requesting permits takes time and costs money. Consult with a qualified builder or architect before starting your home addition project. 

Building up vs. building out

Homeowners focused on increasing square footage should know that building out is more cost-effective than building up. While a second story may provide increased utility, it’s a much more complicated and expensive renovation than a bump-out or a garage extension. However, the tradeoff to building out is losing valuable yard space. 

Cost factors

Home addition costs vary widely based on square footage, building materials, featured amenities, and labor costs. The location of the home addition on your property can also influence the price of the project. 

Be sure to look up the average cost of your desired home addition in your area to get an accurate estimate. It’s also important to shop around, comparing contractors and material prices to get the best deals. 

Doing it yourself (DIY) vs. hiring a contractor

While most home additions require a team of professionals, a skilled amateur or weekend warrior may be able to complete certain projects themselves. Avoid DIYing home additions that require permits, electrical wiring, or structural changes to your property. 

Although hiring someone else to do the job costs money, it’s sometimes in your best interest. General contractors can plan and design compliant home additions, navigate the permit and inspection process, and arrange the delivery of quality building materials – not to mention, they’ll keep your home safely habitable. 

Financing a home addition

If you’re looking to increase the functionality, curb appeal, or value of your home, consider adding a home addition. As a homeowner, your equity empowers you to invest in your property. If you’re looking to finance a home addition,  your home equity may be able to help make your dreams come true. 

Achieve greater financial freedom and stability with a Home Equity Investment from Point. Homeowners benefit from no monthly payments, flexible credit evaluations, and the ability to use the funds as they need. Explore Point’s HEIs here

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