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Does Adding A Bedroom Really Increase Your Properties Value

By Silvia Wei

Australians spend $31.4billion renovating their homes every year, Housing Industry Association data shows. You can be sure that a large portion of that money goes towards adding bedrooms, often with the idea that doing so will add value to the property.

But the question remains – does adding a room really make a difference to your property’s value? And how can you get the most out of your renovations?


The limited body of research and expert opinion available on the topic is unanimous – homes with more bedrooms sell for more on average. In fact, a study of median home price data by Andrew Crossley for the New Daily found that an extra room increases house price by on average $95,000.

Other expert opinions suggest that number could be closer to $150,000 if you renovate smartly. While it’s incredibly difficult to pin down the exact amount that adding a room could add to your property’s value, it’s clear that an extra room has a positive effect.

However, adding a bedroom to your home isn’t a foolproof road to riches. If you don’t consider the demographic in your area, keep your renovation costs down and remain cautious, that new room could end up costing you far more than it’s worth.


Before adding a room to any property you need to consider the demographic that would be likely to rent or buy it. For example, if you own property in an area populated mainly by families adding an extra room to a two bedroom home will almost certainly add value.

On the other hand, if you’re looking to rent a home out to an area populated mainly by first home buyers adding that extra room may not be as profitable. Understanding what people want and then changing your home to better fit those requirements is what renovating to add value is all about.

If you consider your suburb’s demographic then decide an extra room won’t make your home better suited, it’s best to consider other renovations that will. If you’ve decided that adding a room is the way to go then keeping costs down is absolutely essential to maximise the profit you make after renovating and selling.


The Archicentre Cost Guide estimates the average cost of adding a room to your home will be $1,900 to $3,400 per square metre. Your new room will most likely be at least 10sqm in size, meaning that construction will cost between $19,000 and $34,00 at minimum.

If you’ve committed to such a massive cost, you must be absolutely sure that there’s demand for the extra bedroom and that there’s no other way to add a room. There’s always a chance you could add that extra bedroom without expensive add on construction.

If your property has an attic, study, large garage or other room that could be converted into an extra room at a far lower cost. This method could be a a smarter, lower risk option if you’ve decided that an extra room is the way to go.

Last of all, when you’re adding that room make sure you only use quality tradesmen and materials. If your add-ons are of a lower quality than the rest of the house you may find they decrease your home’s value instead of increasing it.

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