2002 Cost vs. Value Report

About one-third of the projects built by Ryan Schleper, owner of All City Builders, Buffalo, Minn., are basements. Schleper says clients want their basements finished for two reasons: They need space, and it's usually about a third of the cost of an addition, because mechanicals, foundation, and outside walls are already in place and no re-landscaping is required.

Finished basements are a regional improvement. In areas of the South -- Texas and Florida in particular -- basements themselves are a rarity. (That's why we don't list cost or value numbers for Dallas and Miami.) HomeTech puts the national average cost of remodeling a basement at $43,112 and real estate agents and appraisers interviewed for the study predict an average return of $33,911, or 79%.

Project description

Finish the lower level of a house to create a 20-by-30-foot entertaining area with wet bar, a 5-by-8-foot full bath, and a 12-by-12-foot auxiliary room. Walls and ceilings are painted drywall throughout; exterior walls are insulated; painted trim throughout. Include five six-panel primed hardboard doors. Main room shall include 15 recessed ceiling light fixtures and three surface-mounted light fixtures and snap-together laminate flooring system. Bathroom includes standard white toilet, vanity with cultured marble top, resilient vinyl flooring, two-piece fiberglass shower unit, a light/fan combination, vanity light fixture, and recessed medicine cabinet. Bar area includes 10 linear feet of raised-panel oak cabinets with laminate countertops, stainless steel bar sink, single-lever bar faucet, undercounter refrigerator, and vinyl floor tile.

Market Job Cost Resale Value Cost Recouped
National Average $43,112 $33,911 79%
Atlanta 39,690 30,000 76
Boston 49,383 43,802 89
Buffalo, N.Y. 41,854 14,100 34
Chicago 49,071 45,427 93
Cincinnati 42,147 30,450 72
Cleveland 45,720 24,372 53
Columbus, Ohio 41,527 9,076 22
Dallas NA NA NA
Denver 39,627 22,407 57
Detroit 44,276 24,897 56
Houston NA NA NA
Indianapolis 41,902 22,000 53
Kansas City 41,688 21,250 51
Los Angeles metro 47,834 62,084 130
Los Angeles 48,136 83,835 174
Orange Cty, Calif. 47,532 40,333 85
Miami NA NA NA
Milwaukee 44,786 28,883 64
Minneapolis 48,103 34,083 71
New Orleans 36,893 30,790 83
New York metro 46,483 42,426 91
Passaic, N.J. 47,808 35,500 74
Nassau-Suffolk, N.Y. 48,666 35,333 73
Fairfield-New Haven, Conn. 42,975 56,446 131
Norfolk, Va. 33,619 27,750 83
Orlando, Fla. 36,845 26,182 71
Philadelphia 45,593 34,795 76
Phoenix 39,855 25,833 65
Pittsburgh 43,433 33,250 77
Portland, Ore. 44,072 32,667 74
Providence, R.I. 43,529 25,200 58
Sacramento, Calif. 45,967 35,000 76
Salt Lake City 37,298 26,300 71
St. Louis 45,291 27,167 60
San Antonio 37,937 34,032 90
San Diego 45,809 41,250 90
San Francisco metro 51,428 68,659 134
San Francisco 51,428 67,100 130
Oakland, Calif. 51,428 70,217 137
Seattle 45,981 36,317 79
Tampa, Fla. 35,141 20,750 59
Washington metro 37,743 30,606 81
Washington, D.C. 40,133 47,667 119
Baltimore 38,046 19,276 51
Richmond, Va. 35,050 24,875 71