Your basement holds incredible potential — whether it’s an unfinished space waiting to be transformed or an outdated area ready for a fresh start. From extra bedrooms and home theaters to workout studios or entertainment zones, a well-designed basement remodel can unlock valuable square footage and completely change how your home works for you.
But before jumping into design plans and material selections, it’s important to understand what kind of investment a basement remodel involves. Project costs can vary widely based on how you plan to use the space, the level of finishes you choose, and whether you’re finishing an empty basement or remodeling an existing one.
Let’s walk through the average cost of basement remodeling in Sioux Falls, what influences pricing, and what you can expect at different budget levels, so you can plan your project with clarity and confidence.
When it comes to basement remodeling, costs can vary widely depending on the size of the space, the level of finishes, and the type of project, whether you're finishing an unfinished basement or remodeling an existing one.
In Sioux Falls, homeowners typically spend between $20,000 and $80,000 or more on a basement remodel. The price range reflects the difference between basic finishing and full-scale custom basement builds with features like bathrooms, kitchens, or home theaters.
| Type of Basement Remodel | Estimated Cost Range | What’s Included |
| Basic Basement Finishing | $20,000 – $40,000 | Adds drywall, flooring, lighting, and paint to an unfinished basement shell. Keeps the existing layout and focuses on creating a usable living space. No bathrooms or major plumbing/electrical changes. |
| Mid-Range Basement Remodel | $40,000 – $60,000 | Includes upgrades like framed rooms, semi-custom finishes, added storage, a possible bathroom or wet bar, and improved lighting. May involve some electrical and plumbing work. |
| High-End / Custom Basement Remodel | $60,000 – $80,000+ | Full redesign with luxury finishes, custom cabinetry, built-in entertainment systems, home theaters, full bathrooms, kitchenettes, egress windows, smart home features, and premium flooring and lighting. |
On average, basement remodeling in Sioux Falls costs between $50 and $150 per square foot. This estimate typically includes labor, materials, and project management, but can vary based on:
For example:
Several key factors can significantly affect the overall cost of your basement project:
The larger your basement, the higher the cost, simply because more square footage means more materials, more labor, and potentially more design complexity. Whether you're finishing a small area for a home gym or remodeling a large basement into a multi-room living space, square footage will directly impact your budget.
However, even small basement spaces can become costly if your project includes plumbing for bathrooms, kitchens, or wet bars, or if you’re making structural changes.
The extent of the work being done will heavily influence your total cost. Here's how the scope can vary:
If your basement requires waterproofing, insulation, or mold remediation, these will also add to the project cost.
Just like in any home remodeling project, the materials you select will have a significant impact on your budget.
If your remodel includes installing new plumbing for bathrooms, laundry rooms, or kitchens, expect additional costs for permits, rough-ins, and fixtures. Similarly, upgrading or adding electrical systems for lighting, outlets, or entertainment systems will increase labor and material expenses.
Labor costs for basement remodeling in Sioux Falls generally account for 25% to 40% of the total project cost. Skilled trades like framers, electricians, plumbers, and finish carpenters are all involved in bringing your project to life.
Hiring an experienced contractor like ensures:
Remember, working with a reputable remodeling team helps ensure your basement remodel is done right the first time, saving you time, stress, and money in the long run.
A well-planned budget is the foundation of a successful basement remodel. Taking the time to understand your priorities, plan for the unexpected, and explore flexible options like phased remodeling can help ensure your project stays on track, financially and creatively. Here are key tips to help you budget smart for your basement renovation:
The best way to approach any remodeling project is to begin with how you want the space to work for you and your family. Think about your lifestyle, current needs, and future plans.
By clearly identifying the purpose of the space, you can focus your budget on the elements that will deliver the most value and functionality.
Basement remodeling often comes with unique challenges that aren’t always obvious at first glance. Since basements are below ground level, they are more prone to issues like moisture problems, foundation cracks, or the need for proper egress (emergency exits).
That’s why it’s critical to include a 10% to 20% contingency fund in your overall budget. This financial cushion can help cover:
Building this buffer into your budget protects your project from delays and unexpected financial stress, ensuring you can handle surprises without sacrificing your core remodeling goals.
If your vision for the basement is bigger than your current budget allows, phased remodeling can be a smart strategy. Rather than stretching your finances too thin or compromising on quality, break the project into manageable stages.
For example:
Phased remodeling lets you prioritize the most important elements now while giving you the flexibility to enhance the space over time. It also allows you to spread out costs without sacrificing the overall vision for your basement.
Absolutely. A finished basement not only provides valuable additional living space but can also increase your home’s resale value. Depending on the quality of the remodel and market conditions, finished basements in Sioux Falls can deliver a return on investment (ROI) of 50% to 75% or more.
Beyond resale value, the added space can improve your everyday living, whether it’s for entertaining guests, giving your kids a play area, or creating a peaceful home office.
We’re dedicated to helping homeowners make the most of their spaces — from basement finishing to full custom remodels. Our team brings experience, craftsmanship, and care to every project, guiding you through the process from start to finish.If you’re ready to explore your basement remodeling options, contact us today to schedule a consultation. Let’s turn your basement into a beautiful, functional extension of your home.
