What Is the Average Cost to Finish a Basement?

Are you considering finishing your basement? Finished basements – when done well, and developed by a company that knows well enough what it’s doing—are appealing to potential buyers in the future and can add a lot of value back to a home. Moreover, when they’ve been insulated properly and protected against moisture, they can serve as an extended living space, which can then be used to entertain guests, rent out to tenants, serve as a gym or fitness space, and even act as a playroom.

That being said, finishing a basement isn’t free. It’s a home renovation, meaning you’ll be looking at labour costs, building materials, furniture costs, plumbing, electricity, heating – and even more.

So, what is the average basement renovation cost? What would it cost a family with an unfinished basement to fully develop their basement? Due to the complexity of the question, Basement Builders has opted to address the matter in this blog.

Why finish a basement?

First of all, why do we finish our basements? Is a basement remodeling project a good idea? Here are some of the main reasons why we finish basements:

• Because it can add value back to your home
• Because it can serve as an extended living space
• Because you can use it to rent out to tenants
• Because it can save you money in the long run
• Because it gives you more space to work with

Basement development in Calgary, or in any of Basement Builder’s service areas, comes with an array of benefits. Give us a call if you’re unsure whether a basement remodel is the move for you.

Adds value back.

Let’s break it down – beginning with the first point. Value. Home improvement projects are expensive, whether that’s developing an unfinished basement or doing a kitchen makeover. So long as they’re done well, a basement renovation project can be seriously worth the initial cost in the long run. Your standard basement remodel can reap up to 70% ROI (return on investment.) A home on the market with a finished basement will look more attractive to potential buyers, since buyers won’t need to do the work themselves to finish the basement. If your home is older, a finished basement can also help to “modernize” your property, especially if you tweak it with some cool new features.

Serve as an extended living space.

A finished basement can be anything. A wet bar or entertainment space, a home theatre, a playroom, etc. Put plainly, it’s a living space that extends beyond what you would ordinarily have without the addition of the new room. It could even be an office, if you often work from home, or a fitness area, or anything – your options are endless!

Rent it out to tenants.

Looking for a means to supplement your income? Great! You can use the amenities you have in a finished basement (so long as your finished basement meets the local qualifications for what constitutes as “legal”) to rent out to tenants. Over time, this can easily offset your renovation costs. After the money spent on the renovations has been paid off, you can start putting that money towards other expenses, like mortgage payments. Check out Alberta’s overview of building code requirements for further information on how to legalize your basement suite.

Saves you money.

This point may seem a little confusing – how can a basement space possibly save you money? Well, unfinished basements aren’t sealed properly or insulated adequately, meaning that your AC will do the brunt of the work controlling the temperature, so your appliances will have to work twice as hard. tributes to money spent on your energy bills, which you wouldn’t need to do with proper finishing, sealing, and insulation. With electricity rates in Alberta starting to increase as utility providers raise their regulated rate option, saving money however you can is crucial!

Gives you more space.

This one’s a no-brainer: finishing a basement gives you more space. More space to house guests, more space to store possessions, more space to hang art, more space to play with your kids—and that space is free for you to use however you want. An unfinished basement may not be insulated properly, or the floors are bare and uncomfortable, but a finished basement is appealing, well-heated, and fun!

Average basement renovation costs

There’s no real way to summarize the total cost to renovate a basement, since every basement and home is different, and everyone will look for different features and choices—which will cost different amounts. The average basement renovation cost can have a huge range, between $30,000 to upwards of $70,000. Again, it really depends. Unfortunately, a huge contributor to spiked construction costs have been due to inflation and supply-chain issues, which are causing steep rises in basement development costs. Basement Builders prides itself on transparency and affordability and can walk you through the process so that you’re aware of what you’re spending money on. Knowing that material and labour costs have risen substantially, we’re ready to help you choose what you need to keep within your budget.

We make every effort we possibly can be efficient and reduce overall labour costs. We put our clients first, and we never leave a job unless you’re 100% satisfied with what you’ve got.

What contributes to basement renovation costs?

It’s tough to answer the question, “What is the average cost to finish a basement?” because there’s a lot that goes into your costs. See our list of examples of what may raise your end price.

System updates or additions—plumbing, electrical, heating

If you’re planning to rent out your suite, there are some requirements you’ll need to meet first. You’ll be required to include some kind of bathroom and kitchen, which will mean you’ll need to do some plumbing rough-ins. These can run you as low as $1,500 and higher than $3,000. Relocating them, if they already exist, can also add to your costs.

Open staircases and staircase finishing

As great as they look, open staircases and staircase finishing can run you upwards of $3,000. Commonly, we’ll get requests to open the bottom of the staircase wall in order to replace it with railings and spindles. Costs for this depend on the detail and size of the finishing.

Waterproofing

Waterproofing can cost you as much as $1,000 for small crack filling, and upwards of $6,000 for serious drainage improvements. Homeowners often waterproof too late – like when they’ve found poor drainage around the foundation and walls. It’s better to get this done as soon as you’ve decided to finish your basement, rather than wait for issues to arise.

Adding a bathroom

Adding a bathroom can run you between $2,500 and $13,000, but the addition of a downstairs bathroom can add up to 20% value to your home. Plumbing and drainage will be the most major impact to your overall costs when adding a bathroom. If you have a small basement, you can do a half-bath without any shower or tub, but if you have a bedroom suite you plan to rent out, it’ll need a full bathroom. Choose wisely. Consider added costs for toilets, showers, fixtures, and fans vented to the exterior of your home for ventilation.

Material quality

You might want to think twice before you opt for the best flooring for your basement family room. Material quality, especially with shortages, can seriously impact your overall costs. While tile can you run you under $10/square foot, some materials can range between $30-50. Overall, this adds up. That said, you don’t want to go too cheap, or you’ll risk compromising the longevity and integrity of the work. Work with Basement Builders to help you choose the best flooring for your basement.

Home location

Geographic location will be a factor in the total costs to finish a basement in your area. Cost of living in your town or city will impact labour prices for your basement remodel/renovation project. It’ll also affect accessibility for certain materials, which can impact the quality/type of materials being used to finish your project overall.

Basement size

This is probably the biggest factor contributing to your overall costs. How large is your basement? Any additions or modifications to the actual square footage will run up your price. As a general average, finishing a basement can range you between $7 to about $23/square foot. Obviously, the quality of the materials, the contractor’s labour fees, purpose of space, etc. will affect this total cost, but you can expect a larger basement with the same features and style to cost you more than a smaller basement.