In order to budget properly, it’s important to understand exactly how much basement renovations cost and how that may differ from basement finishing costs as renovations may include structural changes while finishing will not. In this article, we’ll outline the cost of renovations for 2025 and discuss factors affecting the cost and your potential return on investment to help you plan for the future. Please note, though, that the prices outlined are average costs based on research done at the time of writing.

How Much Does a Basement Renovation Cost?

The average basement renovation cost in Ottawa ranges from $25,000 to upwards of $150,000 depending on the square footage of the space and the scope of renovations. Below is a breakdown of costs based primarily on the scope of the project:

Type of Renovation	Estimated Price Range	What’s Included
Basic	$25,000 to $40,000	– Basic finishing – Standard fixtures and materials – Minimal structural changes – Basic electrical work and lighting – No custom work
Mid-Tier	$40,000 to $70,000	– More substantial renovations – Higher quality fixtures and materials – Possible bathroom and small kitchenette addition – Improved electrical work and lighting – Some custom work
Luxury	$70,000 to $150,000+	– High-end fixtures and materials – Possible structural changes – Full bathroom and kitchenette addition – Home theatre/entertainment system – Advanced electrical work and custom lighting – Custom cabinetry

How Much Does It Cost to Finish a Basement?

The average cost to finish a basement in Ontario is typically $60 to $100 per square foot and overall ranges from $35,000 to $120,000 or more, depending on the size and scope of the project. While this price range includes labour, material, and permit costs, there are other factors to take into account that could make your project more expensive, such as adding a bathroom or kitchen.

Components that Add to the Cost of a Basement Renovation

There is a wide range of components that can add to your basement renovation cost.

These components include:

Adding a Bathroom

Depending on the size of the bathroom you want to add to your basement, as well as flooring materials used and if there are any custom features, this could add $15,000 to $20,000 to your renovation costs.

Painting

Depending on the size of the area that needs to be painted, how much paint is used, and the number of hours of labour required, painting could add $1,000 to $1,600 to your renovation costs.

Flooring

The cost of flooring depends entirely on the type of material. Some options for you to choose from include hardwood floors as long as there is no humidity or water infiltration issues, a floating floor in which boards are locked together instead of nailed or glued down to make sure it doesn’t easily buckle, or carpet to reduce noise and enhance comfort.

Ceiling

There are three popular options for ceilings that vary in price: gypsum, architectural, and suspended. A gypsum ceiling is made up of pasterboards and is the cheapest option at $2 to $3 per square foot. An architectural ceiling has a decorative design and is the most expensive option at $7 per square foot. A suspended ceiling is a secondary ceiling that hangs from the structural ceiling and is in the mid-price range of $5 per square foot.

Plumbing

Proper plumbing is a critical feature of any basement renovation, particularly if the plan is to add a bathroom or kitchen to the space. The cost of plumbing varies based on different factors such as the labour and materials needed, the area in which you live, and the amount of fixtures installed.

Drywall Installation

Installing drywall is another critical part of basement renovations. As with plumbing, the cost of installing drywall varies based on different factors like the labour and materials needed, and additional features including mold resistance and soundproofing.

Electrical Features

Typically, a basement won’t have natural light sources, which means that artificial lighting is required. The average cost of installing electrical features ranges from $50 to $100 per hour of labour.

Factors Affecting the ROI of Basement Renovations

On average, the expected return on investment (ROI) for basement renovations is around 70% to 75%. Your ROI can be affected, though, by a variety of factors, such as:

Real Estate Market — The location of your home and the surrounding neighbourhood can greatly impact the ROI of your basement renovation. For example, if other houses in your neighbourhood have unfinished basements, then your house with a finished basement will be more desirable in the eyes of potential home buyers.
Purpose of the Renovations — The design of your renovations is extremely important. An open concept tends to be more valuable than a basement plan that is closed off. Other basement design ideas that are quite popular nowadays include a home theatre, home gym, and an organized storage space.
Building a Secondary Suite — Building a secondary suite in your basement is a surefire way to increase your property value. Having an additional living area, whether as a space for family or one that you’ll rent out, will definitely increase your ROI.
Materials Used — While you might think that buying luxury items is the way to go to get a bigger ROI, mid-range features are actually better value. Getting materials that are known to be more practical and durable will both reduce overall renovation costs and increase ROI.
Natural Light — Having natural light sources in your basement will undoubtedly increase your property value and, subsequently, your ROI. It is a great investment if you are able to add windows, especially large windows, to your basement.

So, Is the Cost to Finish a Basement in Ontario Worth It?

Throughout this article, we have provided a breakdown of the cost to renovate basements, discussed the different components that add to renovation costs, and outlined factors that affect your potential ROI. At Capital Basement Renovation, our team is dedicated to providing you with the most valuable basement renovations in Ottawa. Contact us today for a free consultation!

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FAQ’s

How much does it cost to finish a 1,500 sq ft basement?

The average price to finish a 1,500 square foot basement would be between $82,500 and $150,000.

What is the most expensive part of finishing a basement?

This really depends on the requirements of your project. Waterproofing is quite costly, as is labour and installing insulation.

What do I need to consider before starting a basement renovation?

Before starting a basement renovation, you need to determine your budget. This doesn’t just mean figuring out how much you want to spend, but also factoring in the average prices for the changes you want made.