When you’re shopping for or leasing a new place, it’s easy to focus only on what you need right now.
Maybe a one- or two-bedroom unit covers your current needs, but what if your household grows? What if you frequently host out-of-town visitors? Or perhaps you’ll want a home office, playroom, or craft studio down the line?
Thinking ahead is wise, yet choosing a larger place solely for “what if” scenarios can prove expensive over time — especially if that spare room rarely gets used.
Zillow’s recent Cost of Moving Up study found that homeowners across the country pay about $192 more each month to move from a one-bedroom to a two-bedroom residence, and roughly $447 extra monthly to upgrade from two bedrooms to three. Families moving from three to four bedrooms saw an average increase of $614 per month.
“While the decision to relocate is personal, knowing how features such as size, neighborhood or the number of beds and baths affect a home’s cost can be crucial when deciding whether a property is the right match for your household,” said Svenja Gudell, Zillow’s chief economist, in a press statement.
Prices differ by market, of course, but Zillow provides a useful chart detailing the added monthly expense of extra bedrooms (and bathrooms) across 34 metropolitan regions.
Below are some examples:
Chicago:
Extra monthly cost from one bedroom to two bedrooms: $15
Extra monthly cost from two bedrooms to three bedrooms: $144
Dallas:
Extra monthly cost from one bedroom to two bedrooms: $44
Extra monthly cost from two bedrooms to three bedrooms: $365
Washington, D.C.:
Extra monthly cost from one bedroom to two bedrooms: $101
Extra monthly cost from two bedrooms to three bedrooms: $429
Miami:
Extra monthly cost from one bedroom to two bedrooms: $269
Extra monthly cost from two bedrooms to three bedrooms: $599
Boston:
Extra monthly cost from one bedroom to two bedrooms: $368
Extra monthly cost from two bedrooms to three bedrooms: $512
Los Angeles:
Extra monthly cost from one bedroom to two bedrooms: $826
Extra monthly cost from two bedrooms to three bedrooms: $1,033
If your area isn’t on Zillow’s list, you can explore this interactive resource to estimate how much upgrading will add to your monthly outlay.
Does That Extra Bedroom Make Financial Sense?
An Apartment Therapy piece advises performing a simple cost-benefit check before opting for a home with a guest room.
For example, Zillow’s numbers suggest homeowners in Denver would need overnight visitors for at least 23 nights a year for a second bedroom to be a financially sensible choice. Fewer visits and it’s likely cheaper to put guests in a hotel.
But homeowners who rarely use an extra room don’t necessarily face wasted expense. Letting out an unused bedroom via platforms like Airbnb or Homestay can offset the cost of the additional space — and might even generate profit.
Read about one renter who earned $5,000 in a year by listing spare rooms through Homestay.
If you create an appealing space and provide great hospitality, you could boost your income by hundreds or even thousands of dollars through short-term rentals.
Small, thoughtful choices can turn a decent stay into an outstanding one.
Tips to increase success:
- List your room during peak local demand — think concerts, conventions and major sporting events.
- Keep your place well-supplied with basic toiletries travelers expect — toilet paper, soap and clean towels.
- Be personable. Many guests pick short-term rentals for the unique, personal touch they can’t find at chain hotels.
Here’s the link to sign up as an Airbnb host.
(Regulations for hosting differ by municipality. Make sure you understand the rules that apply to your city and listing.)
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Ultimately, deciding whether to add rooms to your home is a personal call, but weighing all the monetary pros and cons can protect your budget. After all, a house is a major financial commitment.
Laura Chen is a staff writer at Savinly. During her most recent move, she debated renting a one-bedroom to save money but concluded that a two-bedroom better suited her family’s needs.
For more on evaluating splurges and value, see is expensive chocolate worth it.
