Cost to Build a Garage With Apartment Living (Updated for 2025)

Suppose an older relative is coming to live with you, or you hope to get some rental money in a robust housing market. You should consider the cost to build a garage with apartment living. 

According to recent research, 25% of adults aged 25 to 34 live in a multigenerational household. Multigenerational households have drastically increased in the last 15 years, likely due to rising living expenses. It’s not just young people bunking with their parents, either. Today, 69% of adults 50 and over would consider living in accessory dwelling units (ADUs). 

Adding square footage is different from creating an apartment out of a garage — you need more than just a space for a sofa and television. Building a garage with apartment living could cost between $6,026 and $27,516, depending on what you include. 

Yet, while renovation expenses are typically high, there are less expensive ways to construct a garage apartment. Here’s a breakdown of the essential costs.

1. Insulation

Garages get cold in the winter, so insulating the interiors is crucial if you plan to convert the space into an apartment. Most homeowners spend $0.50 to $1.25 per square foot to insulate the garage walls and ceiling. This cost doesn’t include the garage door. 

If you’re keeping that in the apartment, you’ll need to make sure the garage door is well-insulated. Garage doors can easily let air escape without insulation. Residents will see high energy bills without the right insulation measures. 

2. Plumbing and Electrical

You’ll need to be able to turn on lights, crank up the stove or flush the toilet in a garage apartment, so plumbing and electrical work are essential considerations when budgeting your garage renovation. Homeowners may spend around $900 to $1,300 to install plumbing lines in the garage. Labor costs are unavoidable with plumbing and electrical work — you always need to hire a contractor to get safe, efficient results.

You’ll see lower plumbing and electrical costs if you already have existing connections near the garage. If professionals have to do everything from scratch, it’s going to take longer and cost more. Additionally, adding complex plumbing or electrical for unique or luxury fixtures will be more expensive. Try to go with simple, reliable work to keep your costs down.

3. Wall Materials

Drywall is essential and should be considered in the cost to build a garage with apartment. Covering the insulation and wiring protects residents and makes the space look complete. A quality drywall job provides a base for painting and decoration. While it is one of the more affordable parts of renovation, you can bring costs down by installing it yourself. However, you should only take on the project if you feel confident in completing it. There are many professionals willing to help if you want to avoid doing it yourself.

4. Paint

The converted garage space will come to life with a fresh coat of paint. Assuming you’re building a studio apartment, the cost to paint depends on the square footage, including the walls, trim and ceilings. The color is more of a personal preference, although painting the space white will evoke a feeling of cleanliness and make a small area feel much bigger. Neutral colors like black and brown are also ideal since it provides a clean slate for occupants to work with and personalize.

5. Doors and Windows

You’ll likely close off the traditional garage door and create a separate entryway for the new apartment. Adding windows will also help draw in some natural light. On average, windows cost between $300 and $2,500 — of course, this depends on the size, type, labor and quantity. 

Exterior doors are critical for security and energy efficiency. A lower-efficiency door will drive up your energy costs, increasing your expenses in the long run. Invest in a secure door with quality insulation properties to increase your door’s cost-effectiveness. 

6. Flooring

Tie the whole look of the converted space together with new flooring, costing about $3,067 for 500 square feet. Hardwood and engineered hardwood are the most expensive choices, while laminate and carpet are more affordable. 

Fortunately, luxury vinyl flooring is highly durable, aesthetically pleasing and much more affordable. Homeowners spend between $1,500 and $20,000 for 1,000 square feet when installing vinyl. Vinyl is a durable, versatile flooring option, especially for spaces on a budget. Remember to fit the flooring to your needs to maximize your money and protect your investment long-term. 

7. Kitchenette

You won’t fit a full-sized kitchen in a small garage conversion — yet, you’ll need a kitchenette for renters to prepare meals. A kitchenette usually includes a small-to-medium-sized refrigerator, microwave, oven, sink and storage. Some homeowners add a countertop convection stove to appeal to renters who want to prepare hot food in a limited space.

While kitchenettes can be expensive to install, you can bring the price down. If you already have plumbing and electrical nearby, you’ll spend less hooking everything up. Additionally, going with mid-range appliances will save you more money. High-end appliances drive up your kitchenette costs. Go with timeless, affordable pieces to stay within your budget. 

8. Small Bathroom

Adding a small bathroom is necessary when converting the garage into an apartment. You should expect to pay between $3,000 to $12,000 for a small half bath. If you want to install a three-quarter bathroom to get that additional closet or cabinet space, you could spend up 10 $18,000. Small bathrooms are a great way to add value to your home and make it more comfortable. 

A bathroom should include a small shower, toilet, sink and vanity and mirror at the very least. Some clever storage is also a good idea for comfortable living. Half-baths are the least expensive option, but a three-quarter bath could really elevate your home. Having that additional cabinet makes all the difference for bathroom comfort and storage. 

Living Comfortably in a Garage Apartment

The cost to build a garage with apartment living can be steep, but you can always create a beautiful space by choosing simple, less expensive finishes for renters or family members. Of course, putting money into features with excellent value can also boost your return on investment.

Original Publish Date 3/31/2023 — Updated 1/28/2025