Adding a new room to your house is one of the biggest investments you can make. Many homeowners wonder is their home renovation worth the cost or not, how much they should budget on construction costs, and what factors really drive the price.
As the owner of Giudice Builds, I have guided countless families for their new family room. From bedrooms to full second-story house additions, I’ve seen how the right planning and craftsmanship not only create more living space but also increase comfort and property value.
I know the questions homeowners ask because I’ve been part of this industry from the ground up. Before launching my company, I worked as a land analyst at Oakwood Homes, where I studied development costs along with room addition costs, negotiated contracts, and managed budgets. I manages lots of home improvement projects, ADUs etc. That experience, combined with my hands-on knowledge of home remodeling, gives me a unique perspective on what truly drives the cost of a room addition.
Adding a room to a house costs $20,000–$80,000 on average, or $80–$200 per square foot. Basic bedrooms cost less, while bathrooms, kitchens, and second stories cost more due to plumbing, finishes, and structural needs. Location also impacts price.
In this article, I’ll walk you through the real numbers, from average price ranges to hidden costs, so you can feel confident before starting your own project.
The average cost of adding a room to a house in the United States ranges from $20,000 to $80,000. Smaller projects, such as a basic bedroom, may fall near the lower end. Larger or more complex builds, like a family room or second story, can reach the higher end or even exceed $100,000.
| Type of Room Addition | Average Size (sq. ft.) | Cost Range | Cost Per Sq. Ft. |
|---|---|---|---|
| Basic Bedroom | 120 – 200 | $20,000 – $40,000 | $100 – $160 |
| Home Office | 100 – 150 | $15,000 – $35,000 | $100 – $175 |
| Mudroom | 60 – 100 | $12,000 – $30,000 | $120 – $200 |
| Bathroom | 70 – 130 | $25,000 – $75,000 | $180 – $250 |
| Kitchen | 150 – 300 | $40,000 – $100,000 | $130 – $200 |
| Master Suite | 250 – 500 | $50,000 – $120,000 | $120 – $240 |
| Family Room | 200 – 400 | $30,000 – $80,000 | $100 – $200 |
| Second Story | 600 – 1,000+ | $80,000 – $250,000 | $150 – $250 |
A general new house addition cost per square foot falls between $80 and $200. High-end finishes or special features like plumbing, custom windows, or vaulted ceilings can push the total higher.
House size is one of the biggest factors because materials and labor scale with square footage. A 10×10 bedroom (100 square feet) is very different in cost from a 20×20 living space or living room (400 square feet). Larger spaces require more lumber, drywall, flooring, insulation, and roofing.

A larger room needs more lumber, drywall, flooring, roofing, and insulation. Every extra square foot adds to the material list, which raises the total bill.
Bigger projects take more time for framing, wiring, plumbing, and finishing. Extra labor hours mean higher costs for builders, electricians, and plumbers.
Large rooms often involve added features like extra windows, vaulted ceilings, or custom layouts. These design choices require more work and materials.
Extending heating, cooling, and electrical systems into a larger room usually costs more. Longer ductwork, wiring, or plumbing runs increase both labor and materials.
Labor costs also increases. Bigger projects need more work hours for framing, electrical wiring, and finishing touches.
Where you live plays a big role in pricing. Homeowners in major cities or coastal areas often pay more for labor and materials than those in rural areas. For example, adding a room in California may cost far more than a similar project in the Midwest.
Local building codes and permit fees also vary. Some cities require stricter inspections, which add both time and expense.
Not every house additions has the same price tag. Smaller and simpler rooms are usually less expensive. Examples include:
These spaces usually require basic framing, insulation, flooring, and electrical outlets, with fewer extras.
Rooms that require plumbing, high-end finishes, or larger square footage will increase costs. Common examples include:
The added plumbing in bathrooms and kitchens drives up the price. A master suite often includes a bathroom and walk-in closet, which adds complexity. A second story is usually the most expensive, since it requires reinforcing the foundation and structure of the house.
Permit fees for room additions usually fall between $500 and $2,000, depending on the city. Some regions also require multiple inspections, each of which may add a small cost.
Failing to secure permits can cause fines or issues when selling the house, so it is not something to skip.
Materials can take up about 50% of the total cost. Choices in flooring, roofing, siding, windows, and finishes all matter.
Lumber prices, which often rise and fall with the market, can also shift project totals by thousands of dollars.
house addition labor typically accounts for 30% to 50% of the total budget. General contractors may charge 10% to 20% of the project cost to oversee everything.

Other specialists include:
The more specialized the work, the higher the labor cost.
Even after the walls go up, finishing work can be costly. Paint, trim, flooring, lighting fixtures, and built-ins often total thousands of dollars.
For example:
Small details like crown molding or custom shelving can drive the cost higher, especially if the design is unique.
If the new room needs heating, cooling, plumbing, or wiring, the cost rises. Extending HVAC ducts into a new room may cost $500–$2,000. Adding plumbing can range from $1,500–$15,000 depending on the distance to existing lines.
Electrical work, including outlets and light switches, usually adds $1,000–$4,000 to the budget.
A ground-level addition usually costs less, averaging $80–$150 per square foot. A second-story addition can cost $150–$250 per square foot.
The higher cost comes from structural needs. Foundations often need reinforcement, and workers need scaffolding, which slows construction. Adding stairs also adds to the expense.
Yes, but the return varies. A new bedroom or bathroom often increase property value more than a mudroom or sunroom. For example:
The property value also depends on the local housing market and the quality of the build.
Several expenses can sneak up during a project:
These surprises can add 10%–20% more to the budget, so leaving room for unexpected costs is wise.
There are a few ways to lower the budget without cutting quality:
Yes, many homeowners use financing to cover room additions. Options include:
Each option has pros and cons, so speaking with a lender is a common step.
Timeframes vary, but most room additions take 3 to 6 months from planning to final inspection.
Bad weather, material delays, or design changes can add extra weeks.
The process usually follows these steps:
Each step has costs tied to it, so planning ahead helps keep the budget realistic.
Sometimes adding a room costs less than buying a larger home. Moving involves realtor fees, closing costs, moving expenses, and a higher mortgage.
For example, if expanding costs $70,000 but moving to a bigger house requires $150,000 more in mortgage plus fees, staying put may make more financial sense.

Finding the right contractor makes all the difference when planning a room addition. Colorado Springs has several trusted builders, but one name stands out for quality and reliability. Giudice Builds is the best Colorado Springs home additions, with Solid Rock, Wagner, DreamMaker, and Classic Homes also offering trusted services.
Giudice Builds is well known in Colorado Springs for handling home additions with skill and care. They focus on structural strength, clean design, and lasting quality. Homeowners praise their ability to complete projects on schedule while keeping communication clear throughout the process. From extra bedrooms to full second-story additions, Giudice Builds offers a full range of services backed by experience.
Solid Rock Custom Homes provides both luxury remodels and additions. They have a reputation for attention to detail and for creating spaces that blend smoothly with existing homes. Their design team works closely with clients to match style, function, and budget.
Wagner Remodeling is a family-owned company that has served the Colorado Springs area for years. They focus on practical additions, such as new bedrooms, family rooms, and garages. Their straightforward process and fair pricing make them a strong choice for homeowners who want dependable results.
Although known for kitchens and baths, DreamMaker also offers room additions. They specialize in combining new spaces with existing interiors so that the final result feels natural. Their design-build model helps homeowners move from planning to completion with less stress.
Classic Homes is a larger builder with a strong presence in Colorado Springs. In addition to building new houses, they handle expansions and additions. They offer flexible floor plan adjustments and large-scale projects for growing families.
The cost of adding a room to a house depends on size, type, materials, and location. Simple bedrooms may cost around $20,000, while complex additions like a master suite or second story may reach $100,000 or more. Careful planning, getting multiple quotes, and setting aside funds for surprises can help homeowners stay on budget and enjoy the new space.
Giudice Builds was one of the best experiences I had in having something built in my home.