How Much Value Does a Detached Garage Add to Your Home?

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Dreaming of a workshop, clutter-free storage, or a private gym? A detached garage might be just what your home needs.

But, here’s the big question: Does it actually boost your home’s value?

The answer: yes, it usually does. While exact numbers depend on your location and build quality, a well-planned detached garage adds usable space and resale appeal.

At Garage Transformed, we focus on turning garages into valuable assets that work for your lifestyle and your wallet.

Let’s take a closer look at how much value a detached garage can really add to your home and why it might be worth the investment.

The Financial Breakdown: ROI, Appraisal Value, & Costs

A garage is one of those features that makes buyers stop scrolling. It’s practical, and most people either want one or wish theirs were better.

Reported Value Increase

How much value are we talking? It varies, but some reports say a detached garage can add 5% to 12% to your home’s value.

Sites like HomeAdvisor estimate that value bump translates to about $12,750 to $33,200, depending on where you live and what your garage offers. But again, not all locations are created equal…

Location

Let’s put it this way: where you live matters more than the garage itself.

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In areas with harsh winters, tight parking, or busy urban streets (think Chicago or Denver), a detached garage is gold. Homes there have seen value bumps of up to 38% just for having a functional garage.

Now, compare that to places like Raleigh or Austin, where parking is easy and the weather is mild. There, a detached garage might only push up your home’s value by 2% to 3%.

So, before you break ground, check what’s selling in your zip code. It can make or break your ROI.

Return on Investment (ROI)

Now, let’s talk payback. Most detached garages earn back 64% to 81% of their cost at resale while some estimates go as high as 85%.

That’s better than a lot of home projects out there. On average, you could recover $20,000 to $35,000 of the cost when you sell. It’s not guaranteed, but it’s a strong performer, especially if it’s done right.

The Appraiser’s Viewpoint

Appraisers won’t just toss a number at your garage and call it a day.
They’re looking at:

  • The functional square footage (Is it usable space?)
  • Build quality (Does it match the house or does it look slapped together?)
  • Features (Electricity? Insulation? Nice finishes?)

The better your garage looks and functions, the more it’s worth on paper.

The Costs

Building a detached garage isn’t cheap, but it doesn’t have to break the bank either.

Average Cost

Across the U.S., the average cost sits around $28,000 to $29,000.
Most people spend between $16,500 and $40,000, depending on what they want and where they live.

Per square foot, you’re looking at around $40 to $70.

Detached Premium

Here’s something to factor in: a detached garage typically costs 10% to 15% more than an attached one. Why? Because it needs its own:

  • Foundation
  • Framing
  • Roof
  • Utility connections

That independence comes with a price tag.

Cost Estimates by Size

Let’s break it down by size:

  • 1-Car Garage (14’ x 20’): $10,500 to $27,000+
  • 2-Car Garage (20’ x 24’): $14,500 to $40,300+
  • 3-Car Garage (24’ x 30’): $28,200 to $57,100+

Of course, things like materials, finishes, labor rates, and whether you’re adding a loft or plumbing all affect the final bill.

What does Building a Detached Garage Look Like?

Here’s an informative video from a homeowner who built a 22’x24′ detached garage in 2021. The work was done by contractors with him doing some of the work himself. The video shows pictures of every step of the process. In the end, it turned out great!

Side note; he went with epoxy floors, a great choice for garage floor finishing. Read our Epoxy Garage Floor Ideas article here.

The Functional & Lifestyle Advantages

Beyond resale value, a detached garage brings a lot to the table. It’s not just a place to park a car: it’s extra square footage that serves your daily life.

Superior Vehicle Protection

Rain. Snow. Hail. Sun that bakes your paint and cracks your dashboard.
A garage keeps your car looking and running better, longer.

There’s also security: keeping your vehicle behind a locked door can deter theft and vandalism. And, don’t forget the bonus: some insurance companies offer discounts for garaged vehicles.

Serious Storage Solutions

According to surveys, around 85% of buyers say garage storage is important.
Detached garages give you a dedicated space for:

  • Tools
  • Bikes
  • Lawn equipment
  • Holiday decorations
  • Camping gear
  • Hobbies

And, that means less clutter inside your home.

The Ultimate Workshop or Hobby Space

Need room to tinker with an engine? Sand down furniture? Paint a mural?
A detached garage gives you separation from the main house, so noise, fumes, and sawdust don’t disturb the rest of the household.

Versatile Flex Space

Garages are no longer “just” garages. With a bit of imagination, they can become:

  • A home gym
  • A playroom
  • An office
  • A quiet reading space
  • A full-blown man cave or she-shed

It’s space you can use your way.

Future-Proof ADU Potential

This is the game changer.

In many areas, detached garages can be converted into Accessory Dwelling Units (ADUs). Think:

  • Rental income
  • Guest quarters
  • Space for aging parents or returning adult kids

Yes, it takes permits and investment, but the payoff? Some homeowners report returns higher than 100% after converting a garage into a rentable space.

Enhanced Privacy & Separation

With an attached garage, every noise, exhaust fume, or clang of a toolbox can drift into your kitchen. A detached garage? Quiet and separate. You decide when to visit.

Factors That Affect Your Detached Garage’s Value

Not all detached garages deliver the same return. A few details, some more obvious than others, can swing your value up or down depending on how well they’re done.

Size & Number of Bays

Size matters here. A 2-car garage is considered ideal in most neighborhoods and markets.

If you’ve got the space for a 3-car or larger, it can bump up your value significantly, especially in suburban areas where extra room is in high demand.

Build Quality & Condition

Cutting corners on construction? Bad move. A garage built with solid materials like strong framing, quality roofing, and proper siding holds its value better over time.

Poor craftsmanship or signs of wear, like peeling paint or sagging doors won’t go unnoticed by buyers or appraisers.

Functionality & Features

A bare-bones structure doesn’t stand out. Even basic things like working electricity, enough outlets, and an automatic door are expected.

Want to boost value? Add features like:

  • Insulation for year-round comfort
  • Heating and cooling systems
  • Plumbing for a sink or future bathroom
  • Finished walls or floors (like epoxy)
  • Built-in shelving or workbenches
  • Natural light from windows or skylights

All of these can make your garage more useful and more valuable.

Market Expectations & Local Norms

Does your area expect a garage due to harsh weather or tough parking? Are garages in your neighborhood standard or upgraded?

If yours falls short of what nearby homes offer, buyers may see it as something they’ll need to fix.

Exterior Appearance & Appeal

A detached garage should match the house, not stick out like an afterthought. Keeping the paint fresh, the roof clean, and the trim in good shape goes a long way.

Simple touches like a paved walkway, outdoor lighting, or a few shrubs can lift the whole space and help it feel like part of the home.

How to Maximize Your Detached Garage Investment

If you’re spending the money to build or upgrade a detached garage, you want every dollar to count. Here’s how to make sure your garage holds its value and maybe even add more over time:

  • Build it to Last: Use a solid foundation, strong framing, and durable siding and roofing. Cutting corners now can cost you big later.
  • Make it Functional: Plan for good lighting, plenty of outlets, and strong electrical work. Insulation makes the space usable year-round and opens doors for future upgrades.
  • Plan for Storage Early: Think through where you’ll put shelves, racks, or cabinets before you even pour the slab. Built-in storage makes a big impression.
  • Keep it in Shape: Touch up paint, check the roof, service the door. A clean, well-maintained garage looks cared for and lasts longer.
  • Match Your Home’s Style: Use colors and materials that blend with the main house. Small touches like walkways or simple landscaping can tie everything together.
  • Think Ahead: Even if an ADU or home gym isn’t in the cards now, lay out the space and utilities so it could happen later without tearing everything apart.

Conclusion

A detached garage can add serious value, both in dollars and daily use. With potential home value increases between 5% and 12% and ROI up to 81%, it’s one of the smarter upgrades homeowners can make.

The key is building with quality, thinking ahead, and staying aligned with what buyers in your area want.

If you’re ready to turn your garage into something more, check out garagetransformed.com for real-world ideas, tips, and advice to help you get started.

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James Kennedy

James Kennedy is a homeowner in the Midwest with a passion for home improvement.

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