What Is the Average Cost of Remodeling a Basement?

Basement Remodeling Costs Per Square Foot

A basement remodel costs $30 to $75 per square foot for most homes. You might pay $150 per square foot for high-end finishes and upgrade options. 

You’ll find that the price to remodel multiple rooms also changes with the type of room. For example, bathrooms cost an average of $125 per square foot to remodel, while living rooms run $30 per square foot. Here are some average basement remodeling costs.

Basement Remodel Cost Breakdown

The cost of remodeling a basement includes different subcontractor projects. In addition to painting and other cosmetic changes, you may need to bring in other professionals, like a local electrician to adjust wiring or a local plumber to add plumbing. Here’s how the costs break down.

Hiring a Designer

Hiring a designer costs $2,000 to $14,000. Professional interior designers will help you layout the space for form and function. They’ll point you toward materials and upgrades that fit your home design and budget, especially with “some items skyrocketing to 200% to 300% of what the price was just a year or two ago,” says Ezra Laniado, Angi Expert Review Board member and owner of Landmark Construction & Development Group, Inc.

Permits & Inspections

You’ll usually need a permit to complete certain jobs within your basement remodel. The typical cost for building permits is $450 to $2,300. Inspections usually come included in the permit price, but you may want to hire other inspectors for specific purposes. Inspections and tests include:

• Drainage and gutter inspections: Usually free

• Gutter cleaning: $120 to $225

• Lead testing: $250 to $420

• Radon testing: $150 to $800

Waterproofing

Though waterproofing isn’t always necessary, many basements are subject to flooding and water damage. Waterproofing your basement costs $2,250 to $7,300. This task could save you money in the long run because it costs less to waterproof walls during your remodel than it does to waterproof your basement after the fact, especially if there’s water damage you need to fix.  

Framing

Framing a basement costs $7 to $16 per square foot, including labor and material costs. Adding a single wall costs $1,000 to $2,900. You’ll only need to worry about adding a wall or two in most finished basements. You’ll want to add electrical, plumbing, and insulation after framing and before drywall.

Wiring & Electrical

Rewiring your basement costs $550 to $2,300, and an electrician typically charges $50 to $100 per hour. It’s not always necessary, but you may have to install additional lighting. If you want to add specialized upgrades like a sauna or a home theater room, you may need to budget for other electrical costs. 

Plumbing

The cost to install or replace plumbing is $350 to $2,000. You’ll need it for laundry rooms, bathrooms, steam rooms, and wet bars.

Insulating a Basement

Insulating a basement costs $500 to $2,500, usually using fiberglass batting. You can expect to pay $1.50 to $2.50 per square foot to insulate a basement. A basement retains higher humidity than most other areas of your house. You’ll want to let the walls “breathe” so moisture doesn’t cause mold growth.

Installing Drywall & Texture

Drywall installation costs $1,000 to $2,900 or about $2 per square foot. You’ll only need it for new walls, not the existing finished space. Adding electrical and plumbing means you might need drywall repairs. Basement drywall repairs cost $300 to $900. Those fees often get included in the overall project bill.

Installing a Ceiling

Most ceilings cost between $900 and $2,400, depending on the type of ceiling. Drop ceilings are a popular option for basements because they’re simple to install and convenient for accessing important pipes, wiring, or ducts. On the other hand, a painted drywall ceiling can make your basement feel like a living space. 

• Standard drywall ceilings: $1 to $3 per square foot

• Basement drop ceilings: $5 to $28 per square foot

• Painted basement ceilings: $2 to $5.50 per square foot

Painting & Wallpaper

You’ll spend $500 to $4,500 on average to cover your remodeled walls. You have a few choices that you can use by themselves or mixed.

• Interior painting: $500 to $4,500 or $2 to $6 per square foot, depending on the paint quality and area size.

• Wallpaper installation: $500 to $3,000 or $25 to $35 per roll

New Flooring

Flooring installation costs $1,500 to $4,700. You’ll have a wide range of materials to choose from, so pick something that matches your current design and budget. Since a basement is one of the most humid places in your home, choose a type of flooring that performs well in humid environments.

Fireplace Addition

Fireplace installs cost $900 to $4,000. Most of the cost comes from the fireplace and the addition of a new chimney pipe.

Basement Remodeling and New Room Addition Costs

Room additions are some of the largest costs associated with basement remodels. Adding a bathroom or bedroom can increase the value of your home, but it’s an investment.

Adding a Bathroom

Adding a bathroom is usually 30% to 50% of the cost to finish a basement. Expect to spend $200 to $300 per square foot or as much as $600 per square foot if you choose luxury appliances and high-end finishes. The total cost to add a bathroom is anywhere between $5,000 and $90,000, but most homeowners spend $8,000 to $15,000 to add one to their basement.

Adding a Bedroom

The cost to add a bedroom during your basement remodel is usually between $20,000 to $30,000. Most of the price comes from the walls, flooring, and paint, but there are some additional costs. To legally call a room a bedroom in a basement, you’ll need both a closet and an egress window. 

• Below-grade egress window: $2,500 to $5,400 

• Building a closet: $1,050 to $3,000

Adding a Wet Bar

Most homeowners spend $500 to $22,500 on the cost of wet bar installation. A wet bar turns a living space into an entertaining space. You can purchase premade bars or have custom work done. Prefabricated bars generally cost less.

Steam Room and Sauna Installation

Sauna installation costs $3,000 to $6,000 with steam room costs running about the same. You can buy a premade plug-in sauna for $2,000 to $5,000.Saunas use dry heat and steam rooms hit 100% humidity and require plumbing and waterproofing, so that adds to the total cost.

Home Gym Installation

Home gyms cost $300 to $15,000, depending on your training goals and budget. You can start small with exercise equipment on a concrete floor for under $500. For $10,000 and up, you can install hardwood floors, full-length mirrors, and exercise machines.

Building a Home Theater

A home theater costs $300 per square foot, but homeowners can spend anywhere from $2,000 to $63,000 on this type of remodel. That high-end price includes soundproofing, theater seating, a large screen, a projector, and a sound system. Without a purpose-built room, you’ll need specialty wiring and some soundproofing. 

• Soundproofing: $1,050 to $2,725

• Home theater wiring: $200 to $825

Cost to Turn a Basement into an Apartment

Turning a basement into an apartment or an in-law suite is a popular remodel, and you’ll typically recover your investment in two to five years if you rent out the space. The price of an in-law suite or apartment conversion is typically $40,000 to $125,000, but you should also consider the following costs.

• Kitchen installation: $5,000 to $30,000 

• Basement walkout doors: $2,500 to $10,000

Finishing a Basement

The price to finish a basement is typically $2,800 to $34,00, and the average cost is about $18,400. Remodeling a basement usually involves demolition and reconfiguring the space. When you finish a basement, you don’t typically alter the layout of the space. As a result, you pay a little less than the average basement remodeling cost

Benefits of Remodeling a Basement

Many homeowners view the cost of basement renovations as a long-term investment into their home, but a remodel doesn’t only add value over time. Depending on the type of remodel, you’re adding functional living space to your home—whether it’s a bedroom, a bathroom, or even a separate apartment. 

Basement Remodel ROI Value

Expect a 70% return on your investment from a basement remodel, though the exact value it adds to your home depends on the type of remodel and its purpose. For example, you can turn a profit on a basement remodel if you convert it into a basement apartment and rent out the space.

How to Save on a Basement Remodel

Basement remodels are expensive, but there are a few ways you can save money. Instead of choosing luxury fixtures and high-end materials, reach for less expensive—but sturdy—options. Your contractor should be able to help you find the best materials for your budget. 

You can also save money by choosing a remodel that doesn’t involve extensive plumbing or electrical work. If you don’t have the budget to add a bathroom, consider transforming the space into a bedroom or seating area. Instead of a full-fledged home theater with expensive soundproofing and high-end electronics, opt for a large TV and cozy seating.

DIY Basement Remodeling vs. Hire a Pro

DIYing a basement remodel depends on your experience level. Some homeowners may have the skills to replace flooring, put up drywall, and paint the space. Unfortunately, basement remodels tend to get complicated. Some jobs, like adding a bathroom or kitchen, require a building permit. You should always leave jobs that require electrical work and plumbing to a licensed electrician and plumber. 

Before you start your project, hire a local basement remodeling contractor to discuss your options. You may be able to cut costs by tackling the small stuff (like some of the demolition, cleanup, or painting) while they handle the jobs that require a pro.