Housing costs are continuing to rise. Today, home prices are 47% higher than they were in 2020.
In turn, many homeowners are struggling to accommodate growing families, aging parents, or the need for extra rental income. The expense of major renovations or moving to a larger property is simply too much to shoulder. Sure, they can afford the home they own now (especially if they purchased pre-2020), but buying a new home at escalated interest rates may be out of the question.
Converting or adding a garage apartment is one more affordable alternative to buying a bigger home. As far as garage apartments go, there are a few routes you can take. You can build a coach house or a garage suite, or invest in a garage conversion.
Here’s how to choose the right accessory dwelling unit (ADU) for your needs.
What is a Garage Apartment?
A garage apartment is a self-contained residential unit that is usually built above, alongside, or within a garage. These structures typically have an open floor plan and include a bedroom, full bath, kitchen, and living space, making them ideal for rental income, in-law suites, or guest accommodations. Garage apartments have all (if not most) of the amenities of a full-sized home packed into a smaller space.
Garage apartments have recently gained popularity due to their versatility, affordability, and space-saving designs. Turn your garage apartment into a long-term rental, short-term Airbnb, or even a secluded office space.
Are There Different Names for a Garage Apartment?
The name for an apartment above a garage depends on its location and architectural style. Some of the most common names include:
- Coach or Carriage House: Historically, a coach house was a building where horse-drawn carriages were stored. Modern coach houses are stylish living spaces often built above garages or as stand-alone structures.
- Garage Suite: A garage suite refers to a secondary suite built above or beside a detached garage.
- Granny Flat: A term used interchangeably with accessory dwelling units, a granny flat is a small garage apartment used to house elderly family members or generate rental income.
But are these terms synonymous? Or are there subtle details that distinguish the three?
The short answer is this: yes, these terms are mostly synonymous, but they’re likely to be used in different contexts.
However, do note that there are crucial differences between coach houses/garage suites and garage conversions.
Coach Houses
A coach house is a detached structure that typically includes living quarters above or beside a garage with a separate entrance. These structures date back to many years ago when homeowners needed more space to store their carriages and house their coachmen. Today, coach houses are more stylish, functional additions to homes.
| Advantages | Considerations |
| Privacy: Since they are separate from the main house, coach houses offer more privacy for tenants and homeowners. | Zoning Laws: Some areas have strict zoning regulations regarding secondary dwellings. |
| Versatility: Coach houses can serve as rental units, guest houses, or even home offices. | Construction Costs: Since they are detached structures, coach houses may require additional costs for utilities and foundation work. |
| Increased Property Value: Adding a coach house can significantly increase the value of a property, making it a smart investment. | Maintenance: A separate unit means additional upkeep, including roofing, plumbing, and landscaping. |
| Aesthetic Appeal: Many coach houses are designed with unique architectural elements that add charm and character to a home. |
Garage Suites
A garage suite is a self-contained accessory dwelling unit built above or adjacent to a garage. These units are usually more popular in urban areas where space is limited. Garage suites make excellent rental properties or multi-generational living quarters.
| Advantages | Considerations |
| Affordable Housing Solution: Compared to building a new house, garage suites are more cost-effective. | Structural Support: The existing garage must be strong enough to support a second-story apartment. |
| Rental Income Potential: Many homeowners use garage suites as rental properties to generate passive income. | Permits and Regulations: Some areas have restrictions on garage suites, including height limits and parking requirements. |
| Sustainability: Repurposing existing structures reduces environmental impact compared to new construction. | Accessibility: Stairs leading to a second-story unit may not be ideal for elderly tenants or individuals with mobility issues. |
Garage Conversions
Unlike a garage suite or a coach house, a garage conversion involves renovating an existing garage into a livable space by adding insulation, plumbing, electrical wiring, and interior finishes. What was previously used to store vehicles becomes a fully functional apartment space, without building a new structure.
| Advantages | Considerations |
| Cost-Effective: Converting an existing garage is typically more affordable than constructing an above-garage suite | Loss of Parking Space: Converting a garage into living space means losing a designated area for vehicles. |
| Faster Construction Time: Since the framework is already in place, renovations can be completed more quickly. | Insulation and Ventilation: Garages are not typically built for long-term habitation, requiring upgrades to insulation, HVAC, and plumbing. |
| Zoning Flexibility: Many cities have more lenient regulations for garage conversions compared to new secondary dwellings. | Zoning and Permits: Homeowners must ensure that their garage conversion complies with local building codes and regulations. |
| Multifunctional Use: A converted garage can serve as a rental unit, home office, gym, or guest house. |
Comparing Coach Houses, Garage Suites, and Garage Conversions
With multiple options available for garage apartments, it’s important to understand how each type compares in terms of cost, space utilization, privacy, property value, and other factors. The square footage of your garage apartment often affects these factors. Here are some key differences between each type of garage apartment.
| Feature | Coach House | Garage Suite | Garage Conversion |
| Location | Detached | Above or next to garage | Within an existing garage |
| Privacy | High | Moderate | Moderate |
| Construction Cost | $125,000 to over $500,000 | $20,000 to $50,000 | $5,000 to $20,000 |
| Space Requirements | Extra land | Uses existing space | Uses existing space |
| Rental Potential | High | High | High |
| Zoning | Strict | Easy | Easy |
| Property Value Increase | About 30% or more | About 20-30% | About 20-30% |
| ROI | 10-20% | 60-80% | 60-80% |
Final Thoughts
ADUs like garage apartments can boost a home’s property value significantly and can be treated as sources of income. If your ADU is vacant for long periods of time, it might be time to consider renting this space through Neighbor, a leading peer-to-peer storage platform. Another way to generate rental income is by renting any vacant lot space, driveway space, or garage space as vehicle storage!
Frequently Asked Questions
Is It Cheaper to Convert a Garage or to Build an Addition?
It’s generally cheaper to convert a garage rather than build an addition. This is because you’re using existing space rather than building a new foundation, roof, and supporting walls. Building a coach house is like building a tiny home.
Do I Need Permission to Convert My Garage?
You’ll usually need to get your garage apartment plan evaluated in order to qualify for a garage conversion permit. Ultimately, the living space needs to be in line with building codes to ensure safety.
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