How Much Does It Cost to Finish a Basement in 2025?
Finishing a basement costs an average of $32,000
The average cost to finish a basement ranges from $15,000 to $75,000, with most projects averaging $32,000.
Your basement’s size, required finishing tasks, and labor are all main cost factors.
The per-square-foot cost to finish a basement runs from $7 to $23.
A finished basement delivers an ROI of up to 70% and can boost resale value.
Budget for spending 20% of your project total on labor costs.
This article was updated using automation technology and thoroughly reviewed for accuracy by HomeAdvisor Editor Ryan Noonan.
When upgrading your lower level, plan on spending an average of $32,000. Most homeowners spend between $15,000 and $75,000 on average on the cost to finish a basement. Costs can dip to $2,800 or climb to $100,000 depending on where you live, the size of the space, and the finishes you pick. Plan on investing $7 to $23 per square foot.
Finishing a basement does more than add square footage—you’re also boosting potential resale value. Start with waterproofing to keep the new space dry, then factor in framing, insulation, drywall, and flooring. Build these line items into your budget and bring in licensed pros so everything is safe and up to code.
Basement Finishing Cost Factors
There are many factors that make up the cost of finishing a basement, such as square footage, installation tasks and systems, permits, labor, and more. Here is a breakdown of the cost factors that impact your final basement finishing price.
Size
The cost of finishing a basement can range from $7 to $23 per square foot. Here is a breakdown of the costs for various basement sizes.
| Size (Sq. Ft.) | Average Cost |
|---|---|
| 500 | $3,500–$11,500 |
| 700 | $5,250–$17,250 |
| 1,000 | $7,000–$23,000 |
| 1,500 | $10,500–$34,500 |
| 2,000 | $14,000–$46,000 |
Labor
Plan on your general contractor or local basement remodeler accounting for 20% of the overall budget, often rolled into the total quote. Depending on the extent of your remodel, you may need to hire plumbers, electricians, carpenters, HVAC technicians, and more.
Permits
Building permits cost $1,200 to $2,000, though your exact fee depends on location, basement size, and project scope. That price tag often covers the required inspections.
Any work that adds plumbing, wiring, or livable square footage needs permits. Proper permits make sure drains flow, wiring is safe, and the entire space meets code.
Skip the permitting process, and you risk a stop-work order, doubled permit fees, fines, or even having to rip out completed work. Insurance claims can be denied, and resale value can take a hit if the space isn’t documented correctly—permits protect you from those headaches.
Cost by Finishing Task
Here’s a breakdown of some common basement finishing tasks:
| Finishing Task | Average Cost |
|---|---|
| Sump pump | $575 |
| Waterproofing | $4,400 |
| Framing | $7–$16 per sq. ft. |
| Insulation | $0.30–$6.75 per sq. ft. |
| Dywall | $1,750 |
| Paint | $1,800 |
| Electrical outlets | $100–$450 each |
| Light switches | $60–$300 each |
| Light fixtures | $150–$900 each |
| Flooring | $3,000 |
Sealing and Waterproofing
Basement waterproofing costs an average of $4,400 for homes with leaky foundations. A sump pump installation costs $575 and can protect your basement from floods.
Waterproofing isn’t optional. Standing water sparks mold, invites pests, and can crack foundation walls. Tackling leaks early keeps your basement dry and your investment intact.
Cost to Frame a Basement
The price of framing a basement is $7 to $16 per square foot, which does not include insulation or drywall. Insulation costs between $0.30 and $6.75 per square foot.
Cost to Drywall a Basement
Installing drywall costs $1.50 to $3 per square foot. Finishing basement walls in a 400-square-foot space may run you $800, while 1,500 square feet is closer to $3,000. Contractors include labor in the total, along with the price of drywall panels, which average $20 each.
Cost to Build Basement Ceiling
A ceiling costs $9 to $13 per square foot to build and drywall in the basement. Contractors often include the price of a basic drywall ceiling in the overall framing and drywalling costs.
Tongue and groove wood paneling is $1 to $3 per square foot and is quick to install. The lightweight panels are easily cut to fit around exposed ductwork and more to give the space a modern look.
Basement Flooring Installation
The price of flooring for a basement ranges from $1,500 to $4,500. Expect to pay $3,000 for 500 square feet of flooring. Hardwood costs up to $22 per square foot, and laminate and carpet cost $3 to $11 per square foot.
Home Systems
Basements are where you find your home's comfort systems. Plumbing for sinks, baths, and toilets run along the ceiling and down the walls to boilers or water heaters. Sump pumps, furnaces, and HVAC systems are usually here, too.
You need to design around these systems since moving them may not be possible or affordable. Placing a water heater in a closet is a possibility, but be sure to check local codes before doing this. Large systems, like boilers and HVAC units, are not so easy to tuck away.
Additional Basement Finishing Cost Factors
Take a closer look at the elements that put the finishing touches on your basement project.
Windows
To keep the space up to code, you must cover the cost of an egress window, which is $200 to $950 per window for the materials and professional installation.
Other Rooms & Features
The way you plan to use the basement determines how best to build out the space. You can turn it into a:
Playroom
Rec room
Home theater
Wet bar
Home office
Workshop
Will you need a Wi-Fi router downstairs? Home offices, theaters, and workshops all need high-tech lighting and plenty of outlets, for example, while a wet bar needs water lines and a sink drain.
Cost to Remodel vs. Refinish a Basement
The price of a basement remodel is $4,200 to $45,000, or $20,000 on average. You might frame it out to create different rooms or just add a wet bar to break up the space. Adding a kitchenette and laundry room significantly increases the cost.
DIY vs. Hiring a Basement Finishing Contractor
Finishing a basement calls for framing, wiring, plumbing, and more, so most homeowners lean on licensed local general contractors or finish carpenters near you. DIY-ing can trim labor costs, but you’ll still need certified electricians and plumbers for specialized tasks. Pros make sure the job is done safely, on schedule, and up to code.
How HomeAdvisor Gets Its Cost Data
No place is more important than your home, which is why HomeAdvisor connects homeowners with local pros to transform their houses into homes they love. To help homeowners prepare for their next project, HomeAdvisor provides readers with accurate cost data and follows strict editorial guidelines. After a project is complete, we survey real customers about the costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Frequently Asked Questions
Finishing a basement turns unused square footage into livable space and returns up to 70% of what you spend when you sell your home. Beyond that resale boost, you gain a playroom, home office, or guest suite you can start enjoying right away. That mix of daily comfort and solid return on investment (ROI) makes basement finishing one of the smartest upgrades you can tackle.
In some parts of the country—especially lots on swamps, high water tables, or other wetlands—local codes prohibit basements. Saturated soil puts constant pressure on foundation walls and lets water seep in faster than any sump pump can handle.
If your property sits on waterlogged ground, building on a slab or crawl space is often safer, more affordable, and code-compliant.
Most basements wrap up in four to eight weeks. Framing takes three to five days, with electrical and plumbing rough-ins following over the next week. Add five days for drywall, two to three for flooring, and another week for paint, trim, and punch-list items.
Delays can happen if materials run late or your contractor’s calendar is packed, so build in a little cushion when you plan.
Whether a finished basement counts toward your home’s official square footage depends on local rules. Many areas only include below-grade space if it has code-approved egress, fully finished walls, ceilings, and floors, plus consistent heating.
Check with your local assessor or building department before you start; meeting those standards can affect taxes, appraisals, and resale value.
Building codes require a checklist: dedicated heat and electrical service, a code-approved stairway, and at least one egress window or exterior door. Walls, ceilings, and floors must be fully finished and meet insulation, ventilation, and fire-separation standards. If you add a bedroom, you’ll also need a closet, proper clearances, and safe exits. If you change the layout later, be ready to update the space so every new room still meets today’s code.
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