How Much Does a Detached Garage Affect Property Value in 2025?

When trying to answer the question, “How much does a detached garage add to property value?” we also need to consider what other touches are added to the garage’s interior. There are a lot of great features that can be added to customize the functionality and look of your detached garage, all of which can impact its effect on your property value.

Lighting

According to HomeGuide, light fixture installation can range between $100 to $650, varying by type and size. Fixtures cost between $50 and $400, while labor typically ranges from $50 to $250. Electricians often charge more for hanging chandeliers or pendant lights from high ceilings. LED strip installation ranges from $70 to $400 for lights and labor or $20 to $50 for the fixture alone. DIY-friendly LED strips have adhesive backing and a remote control, providing highly efficient lighting.

Storage systems

You’ll need storage if you’re using your detached garage as more than just a garage (like a workshop or a makeshift workspace). The type of storage system you choose will impact the cost. You can choose simple garage shelves made of wire, like the HDX Chrome 4-tier metal wire shelving unit, for $59.98. You might need a full-on storage system like the Husky 8-Piece Heavy Duty Welded Steel Garage Storage System for $3,510.

Epoxy flooring

Even if you’re using the garage as a workshop, you probably don’t want to have stains all over the concrete. You can paint the concrete with a water-based epoxy finish like the Rust-Oleum EpoxyShield 2-part Gray Gloss Garage Floor Epoxy Kit for $200, which can cover a 2.5-car garage floor. Professional installation can cost between $1,600 to $5,800.

Security system

It’s not unusual for someone to want to make sure their security system covers their garage in addition to the main parts of the home. Installing a new security system can cost around $747. However, you can opt for a simple alarm like the Ring Alarm Security 5-Piece Kit for just $200.

Second-story living space

Adding an apartment above a detached garage could raise the cost to more than $100 per square foot, depending on whether you’re adding an entire apartment or a simple loft room above the garage space. Don’t forget the building permit, which might cost an additional $500 – $2,000, depending on the project’s scope and your municipality, and always make sure you meet zoning and other requirements.

Much like an attached garage, a detached garage contributes to your home’s value since it adds usable square footage.

Angela Miller, a certified appraiser in Hampton Roads, VA, with over 25 years of experience, says she gives as much value to a detached garage as an attached one, especially in the country. “I also give some value for an unfinished, accessible second floor,” she adds.

A “functionally adequate” garage in a typical market might add $5,000 to $25,000 worth of value, says Mike Ford, a Southern California-based general certified real estate appraiser since 1986. In high-end markets, the value might be higher.

For example, if a homeowner in Austin spends an average of $45,419, they can potentially add $29,000 to the value of their home. However, if a homeowner were to build one of these structures in Kansas City and spend an average of $14,568, they could add $9,469 in home value, on average.

Adding a garage to your property can be a valuable investment, offering both practical benefits and significant financial returns. Beyond providing additional storage and parking space, a garage can notably increase your home’s resale value, with an average return on investment (ROI) ranging from 64% to 81%, depending on factors like location, design, and materials used.

“It depends on the availability of other off-street parking and demand [for] available on-street parking,” Ford says. “Where on-street parking or large driveways are not present, the value of a garage goes up quite a bit.”

Regional variations in garage ROI

The value a garage adds to a home varies considerably across different regions, often influenced by climate, lifestyle needs, and housing market trends. For instance, in areas with colder climates, such as the Midwest or Northeast, garages are highly sought after for their ability to protect vehicles from harsh weather conditions, including snow and ice.

Homes in cities like Chicago, where parking is limited and winters are severe, can see garage additions adding a 38% premium to the home’s value.

Conversely, in warmer climates like Southern California, garages may not be considered as essential. In cities like Los Angeles, where outdoor parking is more common and the weather is generally mild, the value added by a garage might only result in a 3.2% premium. However, even in these regions, features like added storage or a multipurpose garage space can attract buyers and boost appeal.

Urban and suburban dynamics also play a role. In urban areas where parking is at a premium, such as New York City or San Francisco, a garage can be a major selling point, significantly enhancing property value. In contrast, in suburban neighborhoods with ample driveway or street parking, the value added might be more modest but still beneficial, especially if the garage includes modern upgrades or extra storage.

Are detached garages worth the investment?

Adding a detached garage and marketing it with the lifestyle of the buyer in mind can be worth the investment.

“Where I do most of my business, we have properties with detached garages. We have a lot of people with hobbies and toys, boats, four-wheelers, and workshops,” top real estate agent Scott Freeman, who sold 86% more single-family homes than the average agent in Riegelsville, PA, says. “If you have a business — like in our area, we have a lot of landscapers — they don’t necessarily want this big garage attached to the house. They want it separate to store their things and keep noise and whatnot away from the living space.”

Freeman adds, “It’s definitely become very popular to have additional living spaces like carriage houses or apartments above garages.”

Maximizing Your ROI

To make the most of your investment, consider tailoring the design of your garage to regional preferences. In colder areas, prioritize energy-efficient insulation and heating options. In urban settings, focus on security and accessibility, such as automatic doors and motion-sensor lighting. For warmer climates, converting part of the garage into a multi-use space, like a home gym or workshop, can help boost its overall appeal.

By understanding how regional trends influence buyer priorities, you can strategically design your garage addition to maximize its ROI while enhancing your home’s functionality and marketability.

Should you add a detached garage to your property?

It’s often worth the investment for the use a homeowner gets from the garage and can return a decent amount on your investment when you go to sell. You can get a better sense of what to do if you reach out to your real estate agent and ask them how much a detached garage adds to property value.

Header Image Source: (Artazum / Shutterstock)