How Much Value Do You Get From a Room Addition?

If you want to increase the value of your home, you have several options to choose from. You can start with a bathroom renovation, a kitchen remodel, landscaping, or add an extra bedroom to your house. Out of all these options, adding a bedroom seems like the odd one out as it’s not as extravagant as the other ones in terms of aesthetics. So how exactly does adding an extra bedroom add value to a house? This guide should help answer this question for you.

How Much Value Does an Extra Bedroom Add?

The straight answer is, it depends on a number of factors. There isn’t a one-size-fits-all answer to it. According to Priceonomics, the value of adding a new bedroom varies, but it sits somewhere between $30,00-$50,000. If you want to determine just how much you value you get from this kind of project, you should consider the following factors:

Diminishing Value

Generally speaking, the added value of extra bedrooms tends to diminish with each additional bedroom. So the more you add, the less you actually get. The value difference between a one-bedroom home compared to a two-bedroom one could be far more substantial than the value difference between homes with two to three bedrooms.

More Isn’t Always Better 

Aside from the diminishing value, there comes a point when your house could have too many bedrooms. Your house is supposed to accommodate all your needs, not just sleeping. You should make room for your kitchen, dining, bathroom, and living areas as well.

Layout Matters

A home’s layout matters a lot in valuation. Just because you added a new room, doesn’t actually mean it’s worth more than other houses with a similar number of rooms. It all depends on the layout. At times, a three-bedroom house may sell on par with a four-bedroom house because of its stellar layout, despite having the same property size. One house obviously has more rooms, but the other could have a more spacious living room.

Build on a Ground-Floor Addition

If you want to make the most out of your renovation, building out on the ground floor would be your best bet. This option is much more appealing since you’re not just reconfiguring your existing space; you’re actually adding square footage. However, you do need to have the space in your property to add a new room.

Bedroom Space vs. Yard Space

If you’re torn between having more yard space or room in your house, choosing the bedroom generally offers more value. Of course, this depends on your location. More often than not, vacant land tends to be significantly less valuable than improved areas. If you only have enough budget for one renovation, go for the bedroom and get better ROI. However, don’t eat up all the space and leave almost nothing for your yard. This is because small yards also tend to hurt the marketability of your home.


If you’re thinking of adding an extra bedroom to your home, consider these factors first before making a decision.  While additions also come with a cost, it’s worth it once you see how great your new addition is. Finally, make sure you seek help from a home improvement before pushing through with your project to make sure you get the best outcome.

D.F. Hughes is your trusted home remodeling contractor based in Vestavia Hills, AL. From bathroom renovations to room additions, our team of design experts and construction professionals can make your project a reality. Contact us today to get started on your home improvement project.