Housing in Colorado has become more expensive over the last decade. For many people, buying a bigger place just isn’t realistic. But what if you already have extra space you’re not really using?
That’s where the garage comes in.
More homeowners are converting garages into rooms they can actually live in. Some turn them into home offices or guest suites. Others build rental units or spaces for older family members. These conversions solve a space problem without the cost of a full addition or a new home.
Still, turning a garage into a livable space takes more than just putting up a wall or adding furniture. You need to plan the project from the ground up. Here’s what to consider before getting started.
1. Decide How You’ll Use the Space
The first thing to do is figure out what you want the garage to become. Every choice you make after that depends on the purpose. If you want a home office, you’ll need good lighting, quiet walls, and fast internet access. If you’re building a bedroom or studio, you’ll want better insulation and privacy. If it’s for rental use, you’ll need a bathroom and maybe even a kitchen area.
This decision helps shape the layout, structure, and materials. It also affects your timeline and budget. Don’t skip this step. A clear plan now will save time and money later.
2. Budget Smart and Consider Financing Options
Garage conversions cost money. Depending on the size and features, expect to spend between $15,000 and $50,000. The more changes you make—like adding plumbing or raising the floor—the more it adds up.
If you’ve built equity in your home, a home equity loan could help cover the cost. Many homeowners go this route because home equity loan rates in Colorado remain fairly competitive. Using equity is often a better choice than running up credit cards or draining savings.
Just be sure to get quotes, compare rates, and set a realistic budget before starting.
3. Understand Local Rules and Permits
Each city and county in Colorado has different zoning laws. Some areas allow garage conversions without much trouble. Others may require extra permits or even limit how you use the finished space. For example, some places won’t allow short-term rentals or extra kitchens in converted garages.
You’ll also need to follow building codes. This includes rules for ceiling height, ventilation, emergency exits, and more. Check with your local building department early in the process. They’ll tell you what paperwork you need and what inspections you’ll have to schedule.
4. Make the Space Comfortable Year-Round
Garages aren’t designed to be lived in. They often get too hot in the summer and too cold in the winter. If you want the new room to be comfortable, you’ll need to deal with that right away.
Insulation is key. Most garages have little to no insulation, especially in the walls and ceiling. You’ll also need to seal the doors and windows to keep out drafts. Depending on the layout of your home, you might extend your HVAC system to the new space or install a separate unit like a mini-split.
Comfort matters. If the room isn’t warm enough in the winter or cool enough in the summer, you won’t use it.
5. Raise the Floor if Needed
Garage floors are usually lower than the rest of the house. That can be a problem for several reasons. It can make the room feel cold or damp. It can also cause issues with drainage and heating. In some cases, the floor might even slope, which won’t work well for a bedroom or living room.
Raising the floor with a wood frame and insulation can fix these problems. It also helps line the new room up with the main part of your home. This change might add a bit to your cost, but it makes a big difference in how the space feels.
6. Upgrade the Electrical System
Most garages have only one or two outlets and a few basic lights. That’s not enough for a livable space. If you plan to add a TV, computer, or appliances, you’ll need more power.
You may need to add new circuits or even upgrade your home’s electrical panel. This is not a DIY job. Hire a licensed electrician to handle it safely. Also think about where outlets and switches should go before the walls are finished. It’s easier and cheaper to plan now than fix it later.
7. Bring in Natural Light and Update the Door
A livable space needs good lighting. Most garages don’t have enough windows, and they often feel dark and closed off. Adding windows or replacing the garage door with a wall of windows can change that completely. Natural light makes the room feel open and more connected to the rest of your home.
If you want to keep the garage door for flexibility, you can upgrade it. Insulated doors with better seals help control temperature and block noise. You can even add windows to the garage door if you want a bit of daylight without giving up the door entirely.
Whatever you choose, make sure the design fits with the look of your home from the outside. A garage-turned-room should blend in, not stand out.
8. Plan Ahead for Plumbing Needs
If your new space needs a bathroom, sink, or small kitchen area, plumbing is a major factor. Most garages don’t have pipes running through them, so adding plumbing can be costly and complex.
You may need to break through the concrete floor to install new drain lines. You also need to connect water supply lines and make sure everything drains correctly. This work should be handled by a licensed plumber to avoid problems down the road.
Planning early helps. If you don’t need a full bathroom, even a powder room or wet bar can add value. Think about how the space will be used now and in the future.
9. Use Finishes That Feel Like Home
Garages usually look and feel different from the rest of the house. But once it becomes a living space, it should match the rest of your home in style and comfort.
Choose flooring that’s durable and warm. Many people go with laminate, engineered wood, or luxury vinyl. Paint the walls in soft, neutral tones to make the space feel bigger and brighter. Use proper trim, lighting, and hardware so the room doesn’t feel like a leftover area.
If it looks and feels like the rest of your home, you’ll enjoy it more—and it’ll be more appealing to future buyers.
Garage conversions are a smart solution for people who need more room without the cost of building out. With careful planning and the right upgrades, your garage can become a comfortable, fully functional part of your home.
If you need help with costs, look into financing options like home equity loans.
