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Garage Apartment Homes: The Ultimate Guide to Living Over a Garage
You need more space, but adding onto the house can be expensive, and fully custom builds can strain your budget. A prefab garage with upper living space gives you secure storage and a place to live, work, or rent out. At Sheds Unlimited, we build two-story garages that are perfect for apartment-style living above the garage. In this article, we’ll explore garage apartment home ideas and pricing, answer common questions, and cover what you need to know about ADUs, permits, and whether a detached garage with apartment potential is right for you.
What Is a Garage Apartment Home?
A garage apartment home is a living space built above or beside a garage. It usually includes a bedroom, bathroom, and small kitchen, all paired with fully functional garage space below. These setups are often called carriage houses, garage lofts, or apartments above a garage.
At Sheds Unlimited, we build two-story prefab garages with upper living space potential. You get a secure, detached garage on the first floor and a blank canvas above, ready to be finished into a home office, guest suite, or rental unit.
How Much Does a Garage Apartment Home Cost?
The cost of a garage apartment home depends on the size, layout, and materials you choose. At Sheds Unlimited, we build prefab garage shells, meaning the exterior structure is completed, and you or your contractor finish the interior. This approach gives you more flexibility and control over the final cost.
Here’s a look at what you can expect to pay for the shell of a prefab garage with apartment potential:
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Use our Price Search Tool to explore different sizes and styles, or get a free quote to start planning your garage apartment home today.
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Do I Need a Permit to Convert My Garage into Living Space?
Yes, converting a garage to living space almost always requires a permit. Most areas have code requirements for insulation, electrical, plumbing, and structural changes. If your current garage is outdated or not up to code, conversion costs can add up fast.
For more flexibility and fewer compromises, many homeowners choose to build a new prefab garage with upper living space instead. For more guidance about the permit process in your area, you can also explore our garage permit articles by state. Always check with your local zoning office before starting a conversion.
Garage Permit Regulations By State
Can You Build an Apartment Above a Garage?
Yes, you can build a garage with apartment above, also known as an apartment above a garage. It’s a great way to add living space without expanding your home’s footprint.
At Sheds Unlimited, we build two-story prefab garage shells designed for this purpose. The lower level provides storage or parking, while the upstairs is ready to finish as a private living area. Permits are usually required, so check local codes before building.
What Does a Garage Apartment Look Like?
A garage apartment home can take many forms: studio, one-bedroom, or even a compact two-bedroom layout. The upstairs living area is typically finished to include a bedroom, bathroom, and kitchenette or full kitchen, while the garage below remains fully functional for vehicles, storage, or workspace.
At Sheds Unlimited, we provide the unfinished two-story garage shell. You or your contractor handle the interior layout, giving you flexibility to design the space to fit your needs.
Many customers choose:
- A garage with apartment above for short-term rental or in-law living
- A garage with upper living space as a private office or guest suite
- A detached garage with apartment to preserve privacy and keep home expansion simple
Our customers, Ken and Cheryl, started with an apartment above a garage, and used it as a springboard to build their full retirement home.
What About Finishing Costs?
At Sheds Unlimited, we build the garage shell only. That means the framing, siding, roofing, windows, and doors are included, but the interior finishing is handled by your local contractor. Since finishing costs vary widely depending on location, materials, and labor rates, we recommend getting quotes from a trusted local builder to estimate what it would take to complete the upstairs living space. Most customers choose to add insulation, electrical, plumbing, drywall, and flooring to turn the upper level into a livable apartment.
Garage Apartment Home vs. Garage Conversion
There are two main ways to create a garage apartment home: convert an existing garage or build a new one. At Sheds Unlimited, we focus on prefab two-story garages designed for upper-level living, but some homeowners choose to remodel what they already have.
Converting a garage can be cheaper upfront if the structure is in good shape, but it often requires major upgrades, like insulation, HVAC, windows, and structural changes, to meet code.
Building a new detached garage with apartment space offers more design flexibility, keeps your current storage, and is a popular option for creating an ADU (Accessory Dwelling Unit).
Garage Conversion vs. Detached Garage Apartment
| FEATURE | GARAGE CONVERSION | NEW DETACHED GARAGE APARTMENT |
| Permit Required | Yes | Yes |
| Keeps Garage Function | No – garage becomes living space | Yes – garage stays usable below |
| Layout Flexibility | Limited by existing structure | Fully customizable |
| Construction Time | Moderate | Shell installed quickly |
| Sheds Unlimited Option | We do not offer conversions | We build prefab garage shells |
| Ideal For | Tight budgets, simple upgrades | Long-term value, ADU potential |
Can a Garage Be Used as an ADU?
Yes, many garage apartment homes qualify as Accessory Dwelling Units (ADUs) if they meet local building and zoning codes. An ADU is a secondary living space on a property, often used as a rental, in-law suite, or guesthouse.
There are two common paths:
- Converting a garage to living space
- Building a new detached garage with apartment potential
At Sheds Unlimited, we don’t finish interiors or handle permitting, but we do build garage shells that are ideal for ADU use. Our two-story garages give you a durable, code-ready structure that your local contractor can finish into a fully compliant ADU, if allowed in your area.
Regulations vary by state and municipality, so it’s important to check with your local zoning office before starting your project. Things like setbacks, parking requirements, and utility hookups can affect what’s allowed.
Is a Garage Apartment Home a Good Investment?
Yes, a garage apartment home can be a smart investment. It adds flexible space for rental income, guests, or multigenerational living, plus long-term value to your property.
Many homeowners use the upstairs for family while keeping the garage for storage or parking. Others finish the whole structure as a detached ADU, depending on local zoning.
A prefab garage with upper living space is often more affordable than a full addition, and since you start with the shell, you can finish it to match your needs and budget.
How Long Does It Take to Build a Garage Apartment?
At Sheds Unlimited, most two-story garage shells can be built, delivered, and installed in a few weeks to a few months, depending on the season, schedule, and complexity of the build. Once the shell is in place, the timeline for finishing the interior depends on your contractor and how extensive the work is.
Here’s a general breakdown:
- Prefab garage shell: Usually ready in 6–12 weeks
- Site prep and foundation: Handled locally, often adds 1–2 weeks
- Interior finishing: Varies by project, typically several weeks to a few months
Because we focus on the structure, you’ll want to plan ahead with your contractor to schedule electrical, plumbing, insulation, and finishes after delivery. The result is a garage apartment home that fits your timeline and budget. Design yours with our 3D Builder and get a free quote.
Is It Safe to Live Above a Garage?
Yes, living above a garage is safe when the space is finished properly. At Sheds Unlimited, we build strong, code-compliant shells designed for second-story living, but it’s up to your contractor to complete the space to local code.
Important safety features include:
- Fire-rated drywall between floors
- Proper insulation and ventilation
- Sealed floors to block fumes
- Smoke and carbon monoxide detectors
With the right finishes and inspections, a garage apartment home can be just as safe and comfortable as any other living space.
Can I Rent Out My Garage Apartment?
In many areas, yes, but it depends on your local zoning laws and building codes. A garage apartment home can often be rented out as a long-term unit or even used as a short-term rental (like Airbnb), but only if it’s permitted as an Accessory Dwelling Unit (ADU).
Before listing your space for rent, check with your local municipality about:
- ADU approval or registration
- Minimum and maximum rental durations
- Occupancy limits and parking requirements
- Safety and code compliance
Sheds Unlimited provides the shell structure only, so it’s up to you and your contractor to finish the space and ensure it’s legal for rental use. If approved, renting out a detached garage with apartment potential can be a great way to generate passive income.
Want to See What’s Possible?
Curious what the inside of a garage apartment might look like? We offer sample floor plans to help you start planning. These layouts give you a clear idea of how the space can be used, guest suite, rental unit, or private living area. You can look through layout examples or download your own free sample garage plans to take the next step.
Ready to Build Your Garage Apartment Home?
A two-story prefab garage gives you space to live, work, or rent, without a full home addition. At Sheds Unlimited, we build high-quality garage shells designed for upstairs apartments or ADU potential.
Garage Apartment FAQs
Can I add electricity and insulation to a garage with apartment?
Absolutely (and we highly recommend it)! You can wire your garage for lighting, outlets, and heating or cooling. Insulation on the second floor is essential to keep the space comfortable year-round.
Can I rent out a garage apartment?
Maybe. It depends on your local zoning laws. In many areas, a garage apartment must be approved as an ADU (Accessory Dwelling Unit) before it can be rented. It’s best to check with your local municipality to find out what’s allowed on your property.
Can I see what my building will look like?
Your two car garage includes custom shop drawings. Our other buildings do not come standard with drawings, but you can find many pictures of similar buildings in our photo galleries. Or you can view many buildings in our 3D Shed Builder.
What type of foundation is required for a two-story garage with apartment?
Since two-story garages with a living space are usually large, they almost always need a concrete slab for stability and durability.
Can a garage apartment be used as an Airbnb?
Possibly, yes, but it depends on your local zoning laws and whether short-term rentals are allowed*. If approved as an ADU, a garage apartment can work well as a rental. Always check your city or county rules before listing.
*Regulations and requirements vary. Always check with your local municipality before building, converting, or renting a garage apartment.
How is a prefab garage delivered and installed?
Our prefab garages are delivered in prebuilt sections or as a fully assembled structure, depending on the size and style. For modular garages, our team assembles the sections on-site quickly and efficiently. Delivery and setup are designed to be hassle-free, ensuring you get a ready-to-use garage without the long wait of traditional construction.
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See what our past customers have to say about us! (You can also check our third-party Google reviews and Facebook reviews.)
Our Sheds Unlimited experience began on their informative website. We used their on-line design tool to create our shed, and the project flowed smoothly from design to delivery. Our site is very steep, and I
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Our Sheds Unlimited experience began on their informative website. We used their on-line design tool to create our shed, and the project flowed smoothly from design to delivery. Our site is very steep, and I truly doubted they would be able to deliver our 12’ X 14’ shed. They committed to delivery after reviewing pictures of our narrow street and steep hillside yard. Nate is a master equipment operator. He had our shed sitting perfectly level on our pad about 30 minutes after arrival. I was amazed by what he could with their specialized equipment. Fantastic work Sheds Unlimited!!
Matt
Duncannon, PA
August 12, 2024
What can I say about Sheds Unlimited that hasn’t been said? The process to design what I wanted could not have been easier, the delivery was spot on time and the installation crew (Gideon, Joshua
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What can I say about Sheds Unlimited that hasn’t been said? The process to design what I wanted could not have been easier, the delivery was spot on time and the installation crew (Gideon, Joshua and Leroy) was awesome! I could not say enough good things about Sheds Unlimited, I highly recommend them!
Jonathan Golding
Howell, NJ
September 12, 2023
I started this process of building a garage 2-3 years ago. I called local builders. Two of them never returned my calls, and one guy chewed me out for finding his number on the web
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I started this process of building a garage 2-3 years ago. I called local builders. Two of them never returned my calls, and one guy chewed me out for finding his number on the web and calling him without being referred by someone. I’m not kidding, this is how the building contractor experience is right now in New England. My web searches always turned up Sheds Unlimited and I saw that they had stories from folks in New England who had used them to build garages even though they are in Pennsylvania. I decided to go through the quote process. There was a similar shed & garage company closer to my home in New England so I got quotes from both of them for similar garages. The New England company quoted me a number that was 2 1/2 times higher than Sheds Unlimited quote. I decided to go with Sheds Unlimited. I worked with Sergey in sales over many emails on exactly what I wanted. There was never a moment when he seemed bothered or impatient by my questions and my changes. Everything was possible and everything had a clear dollar amount, the sale never felt rushed. I finally decided on a design and paid the deposit. The local permit process went smoothly with the plans I purchased from Sheds Unlimited. The process of getting a foundation and pad from a local contractor was probably the most difficult part of the process. Contractors that do concrete work, are used to working with builders, not private homeowners. But I found a guy and gave him the plan and I eventually got a nice pad and foundation. I told Michael from Sheds Unlimited the pad was ready and I expected to wait 10+ weeks since it was now summertime. I got the call only 5 weeks later from Gideon the project manager that they were ready. On the scheduled day Nathan and his crew of 3 young, hard working Amish carpenters arrived and discovered that my driveway was the worst-case scenario. They could not get their very long and heavy trailer up our driveway due to the tightness of the turn and narrowness of the driveway. So they had to unload everything from the trailer at the road to my build site which is about 900 feet from the public road. They dealt with local vehicle traffic, and unhelpful local police. The young crew had to run back and forth the 900 feet to walk alongside the forklift to make sure the preconstructed structural members did not swing into trees. Not once did they show any frustration or anger. Nathan was still positive and smiling when I talked with him about it later. So after all this arrival difficulty, when they finally starting constructing the garage, it went up incredibly fast. Every worker knew their part. There was no question about what they should be doing. They practically got the whole 2-story 2 car garage up in one day even after the delay from the driveway issues. They only stopped for the day when torrential rain finally started. They showed up at 5:30 AM the next day and finished the job. I can’t say enough great things about what I witnessed with this construction crew. Like I said, I have never seen anything like them in 26 years of hiring various contractors for home projects.
If you are considering a garage or shed, don’t even think twice. Contact Sheds Unlimited today. I guarantee you have never worked with any company as satisfying as them.
If you are considering a garage or shed, don’t even think twice. Contact Sheds Unlimited today. I guarantee you have never worked with any company as satisfying as them.
Eric C.
Eliot, ME
August 15, 2023
Our experience with ShedsUnlimited was the best experience we have ever had with a construction contractor. From the initial estimate through the final product, they were great to work with and went above and beyond
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Our experience with ShedsUnlimited was the best experience we have ever had with a construction contractor. From the initial estimate through the final product, they were great to work with and went above and beyond on several things. When our local county had questions on the design for permitting, ShedsUnlimited worked directly with them, answering all their questions and moving the project forward. When the county decided (after the fact) that one window needed safety film added, ShedsUnlimited took care of that as well at no cost to us. The overall process went exactly as the website describes, and our 54×24 building was exactly as promised, with the efficient, friendly team completing the assembly in just 2 days! The materials and construction quality were excellent. A large, well-constructed building for significantly less money than a local contractor would charge! I highly recommend ShedsUnlimited for any size building project.
Philip Fawcett
Marshall, VA
August 15, 2023
The driver Sam JR did an outstanding job in maneuvering the shed to my foundation pad. The workmanship on the shed was excellent from ordering to delivery it was seamless From Joe calciano
Joe Calciano
Yonkers, NY
November 4, 2022