Should I Put on an Addition or Move?

One of the biggest questions homeowners face is whether to add onto their current home or move into something new. Both paths have pros and cons, but in today’s market, your mortgage and interest rate often tip the scales.

1. Do You Love Where You Live?

If you’re happy with your location, neighbors, and schools, an addition often makes more sense than moving. If you’re craving a different community, better commute, or new school district, moving may be worth the trade-offs.

2. The Interest Rate Factor

This is where the numbers really matter:

• If you bought your home before COVID, there’s a good chance you locked in a 2–3% mortgage rate. Selling now would mean giving that up and likely buying at 6–7%, which can increase your monthly payment by thousands, even if the new home’s price isn’t much higher.

• By contrast, putting money into an addition lets you keep that low rate while using your home equity to finance construction if needed.

👉 For many families, this is the number one reason staying put and adding on makes financial sense.

3. Weighing the True Costs

• Moving Costs: Realtor commissions, closing costs, moving trucks, and potential renovations to get the new home how you want it. These can easily reach 5–10% of the purchase price.

• Addition Costs: Design, permits, construction, and finishes. While upfront costs can be similar to moving, additions allow you to invest directly into your existing home’s value.

4. Will an Addition Actually Work?

Not every house is a good candidate. Ask yourself:

• Is there room on the lot to expand?

• Can your existing utilities handle the space (septic, well, electrical service, etc.)?

• Is it possible to match facades on your existing home, or will the addition also lead to major renovations of the existing structure?

The last two may not be deal killers, but they certainly drive up cost.

If the answer is yes, you may be a great candidate for an addition.

5. The Final and Most Important Consideration: ROI

Here’s the truth most contractors won’t spell out: There’s rarely a full return on investment for a home addition. Typically, you’ll see 40–70% of the cost reflected in resale value.

That means an addition makes the most sense when you:

• Love your location.

• Value your land and setting.

• Need more space to make the home fit your life.

• Plan to be in your home for 10+ years.

If those boxes are checked, the “return” is less about dollars and more about daily comfort, functionality, and staying where you’re happiest.

Final Thoughts

If you’re sitting on a low interest rate, love your neighborhood, and simply need more room, an addition is often the best move. But if you don't see yourself in this home 10 years from now, moving may still be the smarter choice.

Not sure whether to move or build? Contact us today. We’ll help you weigh the numbers, the lifestyle factors, and the long-term value so you can make the right choice for your family.