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A garage conversion transforms a one- or two-vehicle attached garage into a living space by adding flooring, replacing the garage door with a solid wall, and installing a ceiling. Usually, garage conversions become living rooms or bedrooms. Sometimes, garage conversions go full ADU (accessory dwelling unit) and become habitable living spaces, with bathrooms and kitchens. Such projects, known as AADUs (attached accessory dwelling units) are often done at the same time a new detached garage is built elsewhere on the property.

Converting a garage to a living space is a very tempting option. Since the basic structure of walls, foundation, subfloor, and the roof is already present. In addition, a number of the elements needed for living spaces such as electricity and a couple of windows are already in place—or partially so. Some garages already have drywall on the studs, leaving one less task to do.

But garage conversions can come with some downsides. For one, it can be difficult to aesthetically and functionally blend the conversion with the rest of the house. Major systems such as plumbing and HVAC are typically not in place, so they will need to be installed.

This is one of the more affordable methods of creating a sizeable amount of additional living space. Nationally, a garage conversion averages about $15,000. But this is if you are creating simple rudimentary living space—a family room, for example. Turning a large garage into an apartment-like addition with a bathroom and kitchenette (sometimes known as an in-law suite), can easily cost $30,000 or more. This is still considerably cheaper than a major structural addition, however.