Sandra MacGregor
Erica Corbin
The cost of finishing a basement can be significant, but so can the payoff. Transforming an underused space into a livable, potentially income-generating one can add to your home’s overall value and boost its resale value
Whether you need a new bedroom, office, gym or self-contained suite, here’s what you need to know about finishing your basement
How much does finishing a basement cost?
Remodeling costs can vary dramatically based on factors such as location, materials and basement square footage. It’s a good idea to solicit quotes from a few local contractors to get a clear idea of your project’s potential cost. The table below will give you an idea of the average cost of work involved in a basement remodel:
| Item | Cost |
|---|---|
| Egress window | $1,500 to $6,000. |
| Framing | $15 to $30 per linear foot. |
| Drywall | $2 to $8 per square foot. |
| Electrical | $2,500 to $10,000. |
| Plumbing | $1,500 to $15,000. |
| Foundation pouring or repairing | $5,000 to $25,000+. |
| Sealing and waterproofing | $1,000 to $35,000. |
Price ranges reflect estimates sourced from sites like Harmony Basements[1], Alpine Credits[2], Capable Group Inc.[3], and HomeStars[4]. Your basement finishing costs may vary.
Factors that affect the cost of finishing a basement
The cost of your remodel will generally be determined by two things: what your basement looks like now and what you want it to look like in the future.
Basement size and condition
The size of your basement is a key factor when estimating the cost to finish it. Larger basements will require more materials, labour and time to complete.
Additionally, the condition of your basement will affect your expenses. If your basement has issues like moisture, mould, structural impairments or poor insulation, you’ll likely need to increase your budget. Conversely, if your basement is partially finished or has existing framing, you may be able to save a bit on some aspects of the project.
Level of finish
The materials you pick could greatly affect your budget. If you go with more basic finishes in your basement, such as standard lighting fixtures and a simple flooring option like poured concrete or carpet, you can save a significant amount of money. Butyou may not get as much longevity out of those materials.
On the other hand, additions like custom cabinetry, engineered wood flooring and premium lighting may look better and last longer, but will be far more expensive.
Non-cosmetic costs to consider when finishing a basement
Plumbing and electrical
Because plumbing and electrical work require the services of a licensed professional, they can be some of the most costly aspects of a basement remodel. But think twice before cutting corners. Mistakes could result in flooding, fires or other damage.
Building permits
Most municipalities in Canada require you to get a building permit when you undertake remodels or significant renovations on your home. Luckily, permits tend to be relatively affordable, typically ranging from $1,200 to $2,000. However, some municipalities base permit fees on the square footage of the basement or the value of the project.
Inspections
Municipalities typically require inspections at key stages of your basement-finishing project, such as after framing and plumbing rough-in, as well as at completion. These inspections ensure that the work meets building code standards. Work that doesn’t meet guidelines will need to be redone and then re-inspected, which will come with fees. Incomplete or low-quality work could also lead to damage that requires expensive repairs later on.
Access to the outdoors
The National Building Code of Canada has specific rules about means of egress from your basement, such as doors and windows, that allow people to escape in case of an emergency like a fire. Requirements vary based on whether your finished basement includes bedrooms, but you’ll need at least one window that meets specific criteria for size, opening mechanism and more.
Benefits of finishing a basement
There are multiple reasons finishing your basement could be worth the cost and is worth considering.
More living space
While an unfinished basement might be useful for storage or as a workshop, finishing your basement may offer more functional square footage that better suits your needs. Possibilities for the space include an extra bedroom, a home office, a playroom for young children, a wet bar, a home gym or even an in-law suite for hosting friends and family.
Potential income
If you create a self-contained apartment, you can rent it out. Over time, your rental suite could recoup the cost of finishing the basement or even bring in more than you put into remodeling the space.
Increased home value
In addition to comfort and enjoyment, which are valuable in their own right, a finished basement may increase your home’s assessed value. Extra usable square footage may be appealing to prospective buyers when it’s time to sell. A self-contained suite in particular is attractive, as it means potential passive income for the buyer.
Energy efficiency
If your basement-finishing project includes upgrades like better insulation and energy-efficient appliances — such as water heaters, washers and dryers — you can increase your home’s overall energy efficiency. Not only does this mean a smaller carbon footprint, but it also means that you can save money on utilities — and you may be able to score a Greener Homes Grant to help cover the cost.
Frequently asked questions about finishing a basement
Some housing experts say adding usable square footage is an excellent way to add value. Others say it depends on the specific basement in question and your local real estate market.
If you’re planning to stay in the home for a long time, consider finishing the basement to meet your own needs. If you plan to sell in the near future, consult with a local real estate agent or appraiser to find out which updates will maximize the added value.
Waterproofing and plumbing are often among the most expensive parts of a basement remodel. Waterproofing can be expensive because it takes a lot of work to prevent water seepage, leaks and dampness.
Plumbing is often expensive because it requires the work of a licensed and specialized professional. And if your home is older, it may have galvanized pipes that need to be replaced.
Article Sources
-
Harmony Basements, “HOW MUCH DOES IT COST TO RENOVATE A BASEMENT,” accessed July 10, 2024.
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Alpine Credits, “Basement renovation costs: A comprehensive look,” accessed July 10, 2024.
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Capable Group, “Average Cost Of Finished Basement,” accessed July 10, 2024.
-
HomeStars, “Basement Renovation Cost Guide For Toronto,” accessed July 10, 2024.
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