Housing Crisis Drives Surge in Garage Conversions, Boosting Home Values by $200K

In response to the ongoing housing crisis, homeowners are increasingly investing in renovations to enhance their property's value. A new trend has emerged: converting garages into functional living spaces, which can add up to $200,000 to a home's market value.

For the past 18 months, the housing market has been a hot topic, particularly with rising interest rates. While kitchen and bathroom remodels continue to be popular, the conversion of garages has gained significant traction. This trend is transforming unused or underutilised space into valuable additions like home offices, teen retreats, or extended family accommodations.

Dennis Boca, founder of Tradies Network, notes that garages are becoming a sought-after renovation project. With an average garage size of about 40 square meters in Australia, there's ample room to create a bedroom, ensuite, walk-in wardrobe, and additional study space without requiring council permits.

Boca reports a substantial increase in garage conversion projects, particularly in the Greater Brisbane and Gold Coast areas, where they now account for about 10% of renovations. This figure is expected to rise, with demand for such projects doubling in recent months.

The cost for a garage conversion can range from $100,000 to $250,000, with completion times between four to twelve weeks. Despite the initial investment, Boca emphasises that homeowners often see a full return on their investment. For example, converting a three-bedroom, one-bathroom home into a four-bedroom, two-bathroom home can add close to $200,000 in value.

Boca’s own decision to renovate his family home rather than sell it highlights the practical benefits of this trend. With renovation costs rising alongside property values, investing in garage conversions has proven to be a financially sound strategy.

As homeowners seek solutions to the housing crisis, garage conversions are proving to be a lucrative option, offering significant value increases and practical living space enhancements.