If you’re looking to convert your basement into a living space, such as a games room, you need to finish it so it matches the same standards as the rest of your house. Cost to finish a basement vary widely depending on several factors, including the materials used and the extent of the work required.
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Average Cost To Finish A Basement
The cost of finishing a basement can vary widely between $15,500 and $73,000, with the average cost falling into the $34,000 – 40,000 range.
It stands to reason that a larger basement will cost more to finish. Basements vary in size depending on the property.
For example, your home may have a full basement, which means the basement extends the entire length and width of your property’s ground floor. So, if you have 1,500 square feet of space on the ground floor, a full basement will also be 1,500 square feet.
Did you know? The term “full basement” only refers to the room’s square footage. It does not give any indication of the basement’s height.
As such, you can have a full basement that is the same length and width as your ground floor but is either shorter or higher.
Of course, many homes don’t have a full basement. In these cases, the basement may cover half of the ground floor’s square footage, meaning you have around 700 to 750 square feet in the basement if you have a 1,500-square-foot property.
Basement Finishing Cost Breakdown
What contributes to the large cost of finishing a basement? Let’s assume that you’re completing a full remodel, which includes everything from framing the walls to installing insulation and electrical wiring.
Cost No. 1 – Obtaining Permits
You’ll likely need to complete some electrical work when finishing your basement. Throw plumbing into the mix if you intend to install a basement bathroom.
These installations usually require permits from your city or state, meaning you have a cost to consider before you even start working.
The basement will likely need to pass safety inspections, both before and after finishing, as well.
Aim to budget about $1,500 for these permits and inspections. Generally, the costs don’t vary here regardless of the room’s size.
Cost No. 2 – Framing
Framing involves fitting wooden frames on the basement’s walls. These frames are used to support the wiring, insulation, plumbing, and as the bases of the walls themselves.
This frame typically extends about 3 inches from the wall and gets anchored to the basements floor. Your frame also has studs attached, which prepare it for a drywall installation.
Framing is one of the least cost-intensive aspects of finishing a basement, with materials generally costing about $0.90 per square foot.
Add labor costs of between $1 and $1.50 per square foot to the mix to create an approximate total cost of $1.90 to $2.40 per square foot.
Cost No. 3 – Wall Insulation
In addition to providing some much-needed soundproofing, insulation also helps to control the temperature inside the basement. Heat rises through your home, meaning insulation plays a vital role in keeping the basement warm during colder months.
Installing foam insulation can cost between $0.50 and $2.20 per square foot, depending on the company you use.
You can use our Blown Insulation Cost Calculator to estimate the cost of installing blow in insulation in your basement.
Did you know? Foam insulation is recommended because it is not an air-permeable material.
This means it’s ideal for ensuring that condensation and moisture don’t build up between your basement’s standard concrete walls and the insulation, thus reducing the possibility of mold or damage to your framing materials.
Cost No. 4 – Drywall
The amount you spend on drywall depends on the size of your basement and how many walls it has.
Generally speaking, drywall costs about $1.50 per square foot, though you will usually buy drywall in panels that measure 4 square feet each.
The costs vary from $10 per panel for standard board drywall to about $23 per panel for paperless drywall.
To calculate how much drywall you need, measure the width of each wall in your basement. Add those numbers together to get the total perimeter before dividing by 4 to get a total for the number of panels you’ll need.
Cost No. 5 – Waterproofing
Even if you don’t intend on installing a bathroom in your basement, you’ll still absorb a fairly hefty cost for plumbing.
Your basement is one of the most vulnerable rooms for flooding, meaning floods or storms can cause water to seep through into your newly finished room.
With the cost of pumping that water out typically falling into the $8,000 to $10,000 range, installing plumbing to prevent flooding is a must in areas where storms and floods are common.
Waterproofing typically costs about between $5,625 and $11,250 again depending on the size of the room. This one-time cost ensures you don’t have to deal with the much heavier cost of pumping water out of a flooded room.
Plus, waterproofing prevents mildew and mold formation, making the basement safer for occupants.
Cost No. 6 – Ceiling Installation
Much like with your wall, installing a ceiling includes fitting joists, insulation, and drywall.
However, it’s a more difficult process that often requires special equipment, meaning the per foot cost of installing joists and drywall on a ceiling fall into the $3.00 to $4.10 range.
From there, add on the cost of insulation. Ceilings tend to require batt insulation boards, which cost about $1.50 per square foot.
Plus, you may want a specific finish for your ceiling. A basic textured ceiling costs about $0.50 per square foot, with popcorn ceilings costing about the same and wooden panels or tile costing about $3.50 per square foot.
Assuming you go for full ceiling insulation, this places your per foot cost at between $5.00 and $9.10.
Cost No. 7 – Flooring
Your cost for flooring depends on the type of flooring you go for.
If your basement has an existing concrete floor, you can score and polish it for about $1.80 per square foot.
Choosing to paint that floor with epoxy bumps the cost up to between $3 and $4 per square foot, creating a total cost of about $5.00 to $6.00 per square foot.
Alternatively, you may choose to laminate the floor, which typically costs about $5.50 per square foot.
Did you know? Epoxy is essentially a coating on your basement floor that protects it against many issues. It’s waterproof, which means mold and mildew won’t build up on the floor.
The material is also easier to clean than a standard concrete floor, in addition to offering an attractive and tough finish.
If you’d rather go with a wooden floor, you can expect to spend between $1.50 and $4.00 per square foot, which covers the cost of fitting flooring joists and a plywood subfloor.
Cost No. 8 – Wiring and Electrical
You’ll need new wiring throughout the basement if you intend to have any power running to it. The cost of electric wiring, including an electrician’s labor, falls between $1,000 and $2,100.
How much you end up paying often depends on the basement’s layout. If you’re keeping your original basement’s open-plan design, you can expect to fall into the lower end of this price range.
However, if you want to split the basement into rooms, you’ll pay more because the electrician has to do extra work.
Thankfully, the cost of installing an electrical panel stays the same regardless of the basement’s size and layout. Expect to pay about $750 for the panel, which will give you full control over the room’s electricals.
Cost No. 9 – A HVAC System
You may not believe you need air conditioning in the basement. After all, it tends to be the coolest room in the house for the simple fact that heat rises.
However, the insulation you’ve installed, coupled with the increased use the basement will experience once it’s finished, usually mean that a good HVAC system is required.
Generally speaking, a 1.5-ton HVAC system should do the job for most basements. These systems cost about $1,600, with installation.
Other Cost Considerations When Finishing a Basement
The above costs give you a general breakdown for finishing a basement. But they only cover the costs involved in making the room usable or livable. Additional costs can occur depending on the specific use you have for the room.
For example, you may want to turn your basement into a home theatre room. In this case, you have to consider the cost of furniture, a good projector, and a suitable screen. This type of conversion can easily add thousands of dollars to the cost of finishing your basement.
Alternatively, you may want to install a basement bathroom, especially if you intend to use the room as a living space.
In addition to adding to your electrical and plumbing costs, due to the need to create an extra room, basement bathrooms also come with various fittings. Expect to pay around $5,000 to $8,000 more if you fit a bathroom.
Finally, you have to consider the basement’s foundation.
Issues with the foundation typically get caught during your safety inspection. If you do have a problem with the existing foundation, the cost of fixing it varies widely depending on the nature of the issue.
A simple crack in the foundational concrete costs about $550 to repair. However, any repairs that require the use of a hydraulic pier can easily cost $10,000 or more.
If the foundation has started to sink, you may have to pay for a mud jacking service to raise the foundational slab. This typically costs about $4.50 per square foot.
Did you know? Mud jacking is also referred to as concrete lifting or slab jacking. It’s a simple repair method that involves drilling holes into the basement’s concrete floor and pouring slurry down them.
This slurry fills any gaps in the foundation to stabilize it. The contractor then uses pressure lifting equipment to raise the concrete slab to its intended position, with the job being finished with the caulking of any cracks and the holes drilled for the process.
After 24 hours, the surface is ready for heavy use again.
What Is the ROI of Basement Finishing?
The ROI of finishing a basement varies depending on the nature of the work and your location. However, in almost all cases you’re unlikely to recoup the full money that you spent on the work.
According to Remodeling Magazine, sellers recoup about 70% of what they spent on refinishing their basement.
However, this average varies depending on your location.
The highest ROI is found in the pacific region. People in states like Hawaii and California can expect to pull back about 86% of the cost of basement finishing when they sell.
By contrast, the lowest ROI is found in the midwestern states, with many sellers struggling to get back more than 50% on their investment.
As such, basement finishing is not the best option if you’re looking to sell your property soon and want to raise its value.
The value added to the property generally isn’t high enough to justify the work’s cost. However, if you intend to use the basement extensively after finishing it, the ROI comes from the room’s additional utility, with the extra money made when selling being a bonus.
Does a Finished Basement Need an Egress Window?
You need an egress window in any room of the basement that you call a bedroom. This window provides a means of escape if the room catches on fire or starts flooding.
However, the rules for open-plan basements are a little different. You only need an egress window if there is no other way to get out of the basement other than using the stairs.
For example, those with walk-in basements don’t need to worry about these types of windows. Newer homes also tend to have these windows built in, both to provide egress and to add a little daylight to the room.
Egress windows cost about $3,800 to install.
How Long Does It Take To Finish A Basement?
Though the exact time varies depending on the scope of the work, you can typically expect basement finishing to take between two and four months.
You’ll land on the higher end of that spectrum if you want to split the basement into different rooms or install complex fixtures, such as a bathroom.
Do You Have To Waterproof Your Basement?
There are no laws that state you have to waterproof your basement when finishing it. Though this may make it tempting to skip the waterproofing, thus reducing your spending by thousands of dollars, the issues that can occur when you don’t waterproof the room will cost you in the long run.
In addition to the cost of pumping water out of a flooded basement, which we mentioned earlier, a lack of waterproofing can lead to mold and mildew.
Did you know? Black mold often forms in damp conditions. Exposure to mold spores can cause a variety of issues, including sneezing, coughing, skin irritation, and nasal congestion. Those with asthma may also experience chest tightening and shortness of breath.
Furthermore, water seeping into concrete can cause cracks and other damage. If left unchecked, these issues can lead to your foundation lowering or result in damage that makes your basement unsafe.
Does a Finished Basement Count Towards Your Home’s Square Footage?
In most cases, any space that is below the ground level does not count towards a property’s square footage. This means you can’t advertise your finished basement’s size as part of the overall square footage for your property.
However, you can still advertise the presence of a finished basement and its size separate from the main home. Furthermore, many buyers will raise their bids if you have a finished basement.
Can You Put A Kitchen In Your Basement?
Many states do not allow you to install full kitchens in a basement. The issue typically focuses on stovetops, as these create fire hazards in a room that’s difficult to escape from in the event of a fire.
Still, most states allow you to install other appliances, such as refrigerators and microwaves. This means you can create a kitchenette as long as you don’t install a stove.
Can You Install a Fireplace in Your Finished Basement?
You should be able to install a fireplace in most finished basements. The answer to this question depends on if your contractor can fit a direct vent, which allows for the installation of a gas fireplace.
As long as the gas can be directed away from the room, you should be able to fit this fixture.
Is A Finished Basement Worth It?
Finishing a basement is a costly endeavor that can set you back tens of thousands of dollars. It also requires you to get appropriate permits from your state, in addition to repairing any existing issues your basement has.
Your decision to finish the room or not comes down to how you’re going to use it.
If you want to finish your basement to add value to your property, you’ll likely find that the ROI does not justify the cost.
Even in the best cases, a finished basement only offers an ROI of about 80%, with many falling closer to the 50% or 60% range. This ROI may increase if you convert the basement into an apartment that you can rent out.
Those who want to actively use the finished basement will get more value out of the work. If this sounds like you, the added value to your property is a bonus on top of turning your basement into a functional room that actually has a use.
