Increase the value to your home with the addition of an extra bedroom

Increase the value to your home with the addition of an extra bedroom


Any property additions are investments for homeowners, whether it's a full blown addition project, a remodel or a small bump-out addition.

If you don't plan to move anytime soon, then the value that you receive from the extra bedroom can be enjoyed for years to come. If you plan to sell your home then you will need to consider the resale value. Ensure the extra bedroom add-on is cost-effective. Investing in your home can give a high return on investment, especially when the room addition is completed tastefully.

Does the addition of a bedroom really increase the value of your property?

Australian's spend $31.4 billion on home renovations each year (Housing Industry Association). A good proportion of those renovations will be the addition of a bedroom to the home.

The big question that needs to be asked first to answer this question accurately is what will the demographic of people want that would be buying or renting the home?

There is limited research and expert opinions on the topic, but the results are unanimous - homes that have more bedrooms sell for more on average. How much more, well that varies any between $50,000 - $150,000 on average. An extra bedroom has a positive effect on the property valuation.


A new room addition should still be undertaken with caution - consider the area demographic and keep the renovation costs low or the room may cost more than the increase in the home valuation.

What does renovate to your demographic mean?

Take into consideration the demographic that would likely buy or rent the property. Understanding your demographic and renovating your home to meet those requirements is what will add value to your home.

Example 1 - if your property is located in an area that is populated mainly with families, then the addition of an extra bedroom or two is almost guaranteed to add value to the property. Having a nice size master bedroom is also important.

Example 2 - if your property is located in an area populated mainly by first home buyers or retirees then having an extra bedroom may not be as profitable.

Cost minimisation

After considering the demographic then you need to focus on keeping the renovation costs down to maximise your profits after completing the renovations and selling.

Before starting, consider if there are other options to add the additional bedroom. Is there an attic, study, garage or other room that could be converted to create the extra bedroom at a lower cost? This could be a better, cheaper, low risk option to add that extra room.

attic bedroom

Finally, ensure you use quality materials and tradesmen. You do not want your additional room to be lower-quality than the rest of the home or you may find that it decreases the value instead of increasing it.

Consider other options

You have done the calculations and adding another bedroom isn't the right choice, think outside the box and look at some other alternatives. A studio or granny flat option may be a better investment.

If you have some land available at the back or side of the property then ask the question - Can you accommodate a granny flat or studio room? The addition of a granny flat may suit your property and the demographic better than squeezing in another bedroom to an already tiny and crowded house, and may work out as a better return on investment.

bedroom studio

DeKing can help get you started with adding that extra bedroom

If you are thinking of adding another room to your home the team at DeKing Decks would love to speak with you about your requirements and ideas. Please contact us on 1800 335 464 or complete an online enquiry form.