The Complete Home Addition Cost Guide
for Southeast Michigan and surrounding communities
The Truth About Home Addition Costs
Thinking about adding more space to your home? Home additions can be a great way to expand without moving, whether you need an extra bedroom, a larger kitchen, or a dedicated home office. But let’s be honest—many online sources throw out unrealistic low-cost estimates that don’t reflect the true expenses.
If you’ve ever read claims that a home addition costs as little as $10,000 or $20,000, you’re likely not seeing the full picture. Labor, permits, materials, and unexpected costs can quickly add up.
The truth is, Home Additions vary greatly in cost depending on the type, size, complexity, and location. A basic room addition will be far different from adding a second story or building a separate in-law suite. In this guide, we’ll break down the real costs of home additions, key factors that affect pricing, and whether an addition is a good investment for your home and budget.
Types of Home Additions
Not all home additions are created equal. Some projects involve simply extending a room, while others require major structural work. Home addition costs depend on the project’s scale, materials, and labor. A general rule of thumb is that home additions range from $200 to $500 per square foot, but high-end projects can exceed that. Here’s a more detailed breakdown:
Room Additions
Expanding an existing space or adding a completely new bedroom or bathroom. This is one of the most common and flexible home additions, ideal for growing families or those who need extra space.
Second-Story Additions
Adding a new level to a single-story home, which often requires reinforcement of the existing foundation. This can significantly increase living space but comes with a higher cost due to the complexity of construction
Sunroom or Four-Season Room
A bright, enclosed space with large windows, typically used for relaxing or entertaining. A four-season room includes insulation and HVAC to make it usable year-round, making it a more practical investment in colder regions.
Garage Conversion or Expansion
Turning a garage into a livable space or adding more square footage to it. This is a cost-effective way to add a home office, gym, or guest suite without expanding the home’s footprint.
Accessory Dwelling Unit (ADU) or In-Law Suite
A separate living space that may include a kitchen, bathroom, and bedroom. Often used for rental income or multi-generational living, ADUs are becoming increasingly popular due to their versatility and potential financial benefits.
Home Addition Costs Breakdown
Home addition costs depend on the project’s scale, materials, and labor. A general rule of thumb is that home additions range from $200 to $500 per square foot, but high-end projects can exceed that. Here’s a more detailed breakdown:
To help you plan effectively, here’s a breakdown of where your money typically goes:
| Cost Item | Job% | Description |
|---|---|---|
| Labor & Professional Fees | 30-50% | Typically 30-50% of the project cost. Prices vary based on where you live. In areas like Southeast Michigan, labor costs are lower than in New York or California but still significant. |
| Site Preparation & Demolition | 25-35% | If any part of the existing structure needs to be removed or adjusted, costs can increase significantly. |
| Plumbing & Electrical | 15-20% | Can add thousands, especially for kitchens and bathrooms. |
| Design & Architectural Plans | 10-15% | Some additions require professional designs, adding anywhere from $2,000 to $10,000 in additional costs. |
| HVAC Upgrades | 5-10% | Extending or upgrading heating and cooling systems for the new space. |
| Permits | 5-10% | $500 to $2,000, varying by location and project type. |
The Question-Are Home Additions Worth it?
One of the biggest questions homeowners ask is whether their home addition will increase property value enough to justify the cost. On average, home additions recoup 50-75% of their cost at resale.
While home additions don’t always pay for themselves dollar-for-dollar in resale, they increase livability and may be a more cost-effective option than moving to a larger home. The best way to maximize ROI is to ensure your addition blends seamlessly with the home’s existing layout and style.
Home Addition Cost Calculator
A Typical Mudroom
Includes permits, project management, dumpster, portable toilet, job site prep and clean up, perimeter framing, plugs, switches, lighting, to code minimum, drywall on walls, paint and prime on walls.
A Typical Mudroom
Includes permits, project management, dumpster, portable toilet, job site prep and clean up, perimeter framing, plugs, switches, lighting, to code minimum, drywall on walls, paint and prime on walls.
A Typical Mudroom
Basic laminate flooring installation.
| Element Selected | Estimated Cost |
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| Total Estimate | $0 |
Need more information on your estimate?
Note: This estimate is for informational purposes only and is not legally binding. Final costs may vary depending on project requirements, material choices, and unforeseen factors. Please consult with us for a detailed proposal.
True Cost of Choosing the Right Contractor
Finding the right contractor for your home addition isn’t just about price—it’s about value. A rock-bottom quote might seem like a great deal at first, but have you considered why it’s so low? In our experience, a surprisingly cheap estimate often comes at a hidden cost—whether it’s lower-quality materials, rushed craftsmanship, or key project details being overlooked. These shortcuts can lead to costly surprises later, forcing you to spend more to fix mistakes or settle for a space that doesn’t meet your expectations. Before making a decision, ask the right questions to ensure you’re investing in quality that lasts.
The LHS Difference: Why Choose Us?
At LHS, we believe in designing experiences that are as inspiring as the spaces we create. From planning and design to project management and quality assurance, our process is built on trust, transparency, and attention to detail.
Here are two main benefits that sets us apart
No Hidden or Surprise Costs
At LHS Remodeling & Design, we believe in transparency and integrity every step of the way. That’s why we proudly offer our No Surprise Guarantee. When you partner with us, you can rest assured that there will be no hidden fees or unexpected costs.
If you decide to make adjustments along the way, we handle these changes with the same clarity. Any modifications to the scope of work (through a change order) will be thoroughly discussed, with all costs clearly outlined and put in writing before we proceed.
Our Guarantee & Warranty
Under our Property Protections Guarantee, any accidental damage caused by our team to your personal property will be repaired at no cost to you. This coverage excludes any planned demolition within the job site.
Additionally, we stand behind the quality of our work with a comprehensive 5-Year Warranty. All labor, materials, and workmanship provided by LHS Remodeling & Design will remain free from defects for five years from the date of project completion, as outlined in your contract and any approved modifications.
Discover our complete process and the benefits it brings to you.