What is the actual Return on Investment for a Basement?

Building across Worcester County & Metrowest since 2016

So when it comes to remodeling your basement getting a “good return” for your space can be a very important factor. Remodeling your basement, is a big investment and you want to make sure that your money is well spent and that you will really be recouping as much as you can when you go to sell your home.

There are two types of ROI(return on investment) we are going to talk about here; money ROI and lifestyle ROI….

Now with that said, it’s important to note that a basement is more of a long term ROI if your ultimate goal is to sell it and make some money off of it. As housing value appreciates, so will your basement. If you are trying to get out of your home quickly, i.e., the next year or two, finishing a basement may not be a good idea as you aren’t going to recoup that money right away.

However, if you are thinking three years, five years, or even seven down the line, finishing your basement may very well be a good investment.

According to Remodeling Magazine, a study done in 2017 shows that on average nationwide, 70% of basement remodeling costs are recouped when it comes to remodeling your home. However, in New England returns are typically lower at about 50-60% of actual spend. Now that doesn’t mean it’s not a good idea to still remodel your basement. Simply, you have to consider a few things if your are going to make this investment….

Lifestyle ROI

• What challenges is finishing your basement going to solve?

• Do you need the extra space?
• Maybe an extra bedroom or even bedrooms?
• Flex room or office?

• Work out space?

Money ROI

Let’s take a quick math equation to really break down what a conservative return will give us.

100,000 dollar basement
Sold in 8 years @50% recoup on investment= 50,000 dollars back

/ 8 years = —————————- 6250 a year OR

17.12 a day in spending to have a finished basement.

That’s assuming you can only make 1/2 of what your basement will cost back. Now remember, factors that will affect your home sale are the following:

• Housing market at a given time
• Comparable homes in the area
• Is your basement below grade or above grade?
• Perceived value from a buyer (natural light is a big one!)

And finally, finishing a basement for extra space is still a great option in comparison to an addition for your home, costing about 1/2 or a 1/3 of what an addition will take. If you are ready to get started on your basement remodel you can reach out to us at


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