When homeowners in Massachusetts outgrow their space, they often face a critical question: Should we add an addition or buy a new home? This is one of the most common inquiries we receive at McNamara Contracting. In many cases, adding space through an addition is the right move—but it’s important to weigh the costs, trends, and feasibility of a project before making a decision.

Here’s what’s shaping home additions in 2025 and how we help homeowners determine if an addition is the best investment.

1. Home Addition Trends for 2025

As home values remain strong and interest rates fluctuate, more homeowners are choosing to invest in their existing properties rather than move. Some of the biggest trends in Massachusetts home additions include:

• Multi-Generational Living Spaces: In-law suites and accessory dwelling units (ADUs) continue to rise in popularity, offering a cost-effective solution for families looking to keep loved ones close while maintaining privacy.

• Energy-Efficient Additions: Homeowners are prioritizing high-performance insulation, triple-pane windows, and smart HVAC systems to meet the 2021 IECC energy codes. At McNamara Contracting, we emphasize exterior insulation, mineral wool, and ZIP R-board to create durable and efficient spaces.

• Expanded Kitchen & Living Spaces: Open-concept kitchens and great rooms are in high demand, providing more space for gathering and entertaining.

• Home Office & Flex Spaces: With remote work here to stay, dedicated home offices and adaptable bonus rooms continue to be a top request.

2. The Buying vs. Expanding Decision

Before committing to an addition, it’s essential to compare the costs and benefits of expanding versus purchasing a larger home. We guide homeowners through this decision by discussing:

• Current Home Value vs. Market Prices: Does it make more sense to invest in your existing home, or would buying a larger home in today’s market be a better long-term decision?

• Construction Costs & Budget: The cost of an addition varies widely depending on factors like foundation work, layout complexity, and finishes. For 2025, homeowners should budget $250 to $600 per square foot for a well-built addition in Massachusetts.

• Neighborhood Considerations: If your home is in a desirable location with limited available inventory, an addition may be a better investment than relocating.

• Impact of Interest Rates: Many homeowners are locked into low interest rates on their existing mortgages. Buying an entirely new home could result in higher interest rates on the entire mortgage. If financing or using equity in the home to pay for a project on your existing home, only the portion of the project will be at a higher interest rate, typically resulting in lower monthly payments than moving.

3. Our Approach to Determining Feasibility

When a homeowner calls McNamara Contracting about a potential addition, our first step is to provide as much information as possible upfront. We offer a ballpark price over the phone to help homeowners determine if the project aligns with their budget.

Being off by 15% at this early stage is reasonable. However, if we determine there is a 25% or more discrepancy between the customer’s budget and our ballpark price, it is unlikely the project described is financially feasible.

4. The Advantages of Working with a Design-Build Contractor

Choosing a design-build contractor like McNamara Contracting streamlines the process and helps ensure realistic project expectations. Our team:

• Works with homeowners to refine their vision and determine the most cost-effective way to achieve their goals.

• Provides a detailed project roadmap, including zoning considerations, permit requirements, and energy code compliance.

• Maintains open communication from the initial estimate through project completion, ensuring no surprises along the way.

5. Next Steps: Let’s Talk About Your Home Addition

If you’re considering an addition in 2025, the best first step is a conversation. We’ll discuss your goals, provide an initial cost estimate, and help you determine whether expanding your current home is the right move.

📞 Call us today for a free consultation