Does finishing my basement add value at resale?

Yes — Remodeling Magazine's 2026 Cost vs. Value report shows basement finishes recoup 70–86% of cost at resale, one of the higher-recoup renovations among major projects. Cold-climate states (MN, MI, WI, IL, OH, PA, NJ, NY, MA, CT) lean toward the top of that range because finished basements are baseline buyer expectation. Sun Belt states with shallow basements or none at all see materially lower recoup (50–65%). Use scope matters: rec rooms recoup ~70%, bedroom suites with egress 78%, suite+bath 82%, rental units 85%+. The over-improvement guardrail: project cost should not exceed 8–10% of home value.