16 Tips for Turning a Basement Into a Living Space

Alex Shoemaker

By Alex Shoemaker

Published on Jun. 20, 2025

Homes that have extra, unused basement space have a readymade renovation project just waiting to be started.

Turning a basement into a comfortable, livable space takes more than just a coat of paint and some furniture — it requires thoughtful planning, careful upgrades, and a keen eye on local building codes. From ensuring the ceiling height meets legal standards to adding crucial elements like egress windows, sump pumps, and ventilation systems, every step plays a role in transforming a once-forgotten storage zone into a cozy, functional living area.

This guide walks you through the essential considerations for a successful basement renovation, whether you’re designing a separate apartment, a family hangout space, or a multifunctional room that does it all.

1 / 16

man taking measurements in basement
photovs/Getty Images

Measure Everything

Know how much space you are working with. This is particularly important regarding height: Many local regulations on turning a basement into a livable area require that the basement be at least 7 feet tall, sometimes higher. Always consult local building codes.

2 / 16

man applying anti vapor sheet
ArtMassa/Getty Images

Add Moisture Protection

Living in a basement requires vapor barriers to prevent moisture from spreading beyond the concrete walls, so consider that as you consider basement living room ideas.

3 / 16

A man tilts a wooden window open, revealing a green outdoor landscape through a partially transparent pane, set against a light green wall.
Family Handyman

Install Proper Egress Windows

One of the most important parts of those basement building codes we mentioned are egress windows, basement windows that both let in light and allow people to escape in case of an emergency. A live-in basement requires egress windows, so be prepared to expand existing windows and renovate your foundation to make room for them. We can help you install egress windows yourself.

4 / 16

worker adjusting air vent in basement
FabrikaCr/Getty Images

Include Proper Ventilation

Ventilation is important for airflow. It helps keep the basement fresh and ensures that fumes from heaters, cooking, are safely funneled away.

5 / 16

Tip For Turning A Basement Into A Living Space - diagram to Check For Radon on blue background
AGRIMA SHARMA FOR FAMILY HANDYMAN

Check for Radon

Radon is a type of ground-based radiation. Its presence depends on local geography, and if radon is an issue in your area you may want to get a radon test kit and check levels in your basement.

6 / 16

water damage in basement
Wildroze/Getty Images

Check for Pests and Rot

Check wood, stone and concrete for signs of pests or moisture damage. Before you begin your basement remodel, pest access must be blocked, and rotted materials replaced.

7 / 16

A gray textured mat lies on concrete, connecting wooden panels with insulation and red carpet, adjacent to a smooth wall, suggesting a transition space.
FAMILY HANDYMAN

Inspect and Upgrade Flooring

If people will be living in this basement spaces, they probably don’t want to walk on bare concrete. Wood flooring often doesn’t work in basements because of moisture and warping, but engineered wood, tiles, and properly installed carpet are viable options.

8 / 16

washer dryer in basement
Aziz Shamuratov/Getty Images

Have a Plan for Laundry

If you are creating a separate apartment in the basement, consider adding a mini washer/dryer set. A communal laundry room may seem like a good idea, but carefully consider convenience and privacy issues when coming up with basement bedroom ideas.

9 / 16

Plumbing Test The Sump Pump Or Risk A Flood
FAMILY HANDYMAN

Install a Sump Pump

A sump pump is a necessary installation in wetter areas where ground water can threaten basements. Now that your basement is becoming more valuable, you need to protect it the right way, which could require a sump pump as part of the renovation.

10 / 16

Stairs lead downwards, with wooden steps and a handrail. The walls are light-colored, adorned with empty frames, creating a simple, modern ambiance.
Podsolnukh/Shutterstock

Expand and Upgrade the Stairway

Basement stairs tend to be narrow and dark. Be sure there is a sturdy handrail and good lighting.

11 / 16

A modern kitchen features a bar area with tall chairs, surrounded by beige and brown tiled flooring, and warm lighting highlighting wooden cabinetry.
pics721/Shutterstock

Choose the Right Kind of Lighting

When considering basement living room ideas, consider enlarging windows to include as much natural light as possible. When picking out artificial lighting, go for warm lights that cover a lot of space to remove any of that leftover basement gloom. With enough ceiling fixtures and lamps, you should be able to create a cozy atmosphere.

12 / 16

a person installing Drop Ceiling Panel
Family Handyman

Plan a Ceiling with Room

If you want a proper ceiling in the basement, you probably need to install a drop ceiling. These paneled ceilings come in many styles, so look for a residential option that doesn’t invoke the feeling of a commercial setting.

13 / 16

How To Build A Diy Murphy Bed And Bookcase
Family Handyman

Install a Wall-Bed-Bookcase Combo

A wall-bed combination or drop-down bed helps save a lot of room in a tight basement, so consider installing this DIY Murphy bed and bookcase. It’s one of many great basement bedroom ideas. Further, a Murphy bed can be super simple: Some are just an upright box that contains a fold-down bed. But this is a deluxe version because it includes ample storage.

14 / 16

basement window well
CatLane/Getty Images

Expand Window Wells

Window wells provide an excellent opportunity to make living in basement spaces feel more comfortable: Think about expanding any current window wells to let in more light and allow for planting or even sitting outside.

15 / 16

A gray sectional sofa faces a red desk with a computer in a cozy room, adorned with wall art and a decorative shelf.
Artazum/Shutterstock

Don’t Be Afraid to Let Some Areas Multitask

Review small apartment designs around the world, and you’ll see a whole lot of ideas about how to make spaces pull double or triple duty when it comes to eating, working and relaxing. The right appliances, mobile furniture, pull-out features and other components can allow for a lot of flexibility, even in smaller spaces.

16 / 16

electrical outlet in basement
Willowpix/Getty Images

Place Outlets and Connections Thoughtfully

Whoever is living in your basement will probably have a computer, phone charger and a variety of electronic devices. Additionally, you may want to set up a TV or other type of entertainment system. Carefully think about where to put in outlets and make them plentiful.