The real cost to finish a 1,000 square ft. basement.

Hello, this is James — owner of Diamond Basement Finishing & Bathroom Remodeling.

I want to talk about the real cost of finishing your basement, because a lot of homeowners are being misled — and it’s time someone was honest about it. I’m friends with many basement finishing companies in our area, so I know the going rate right now is $100 to $110 per sq. ft.
At Diamond, we average $45 to $55 per sq. ft. for the same quality craftsmanship.

Here’s the truth:
You should never invest more than 15% of your home’s total value into a basement if you expect a solid return on your investment. Spending more than that can put you upside-down compared to other comps in your neighborhood.

Yes, there are variables: permitting, flooring upgrades, overhead, custom elements — but at the end of the day, studs are studs and drywall is drywall.

It’s frustrating to see homeowners being charged $100,000 for a basic 1,000 sq. ft. basement.
Not a luxury basement… not one filled with custom millwork, Murphy doors, or large-scale cabinetry… but a simple, clean, elegant basement like the one in this photo.

There is no reason anyone should be making $50,000–$60,000 in profit on a project that homeowners trust us to deliver fairly. This is your home, your equity, and your future — and I believe contractors should protect that, not exploit it.

At Diamond, we pride ourselves on being transparent, ethical, and efficient, offering top-tier quality without the inflated price tag.

If you’re considering finishing your basement, I’d be happy to walk you through the real numbers and help you make the best decision for your home and your investment.

​

​

​

​

​

​

​

​

​

​

​

 

 Let’s assume you’re not doing any of the work yourself.
You’re hiring a highly recommended local contractor — the way most homeowners should.

We say this because we see it all the time:
Homeowners try to finish their basements on their own, thinking a few friends will help and it will “only take a few weekends.” Instead, it turns into a 6–12 month nightmare with:

• Wood dust and drywall dust spreading throughout the house

• Dust being pulled into the vents

• Foot traffic tracking debris across the home

• Half-finished projects that stall when “friends get busy”

• Stress, delays, and unexpected expenses

Finishing a basement is not a DIY weekend project. It’s a major remodel — and doing it the right way matters.

What Contractors Are Charging Right Now

In the Chicago suburbs, the going rate for basement finishing (no bathroom included) is:

$100–$110 per sq. ft.

That means a 1,000 sq. ft. basement — without a bathroom — often gets quoted at $100,000–$110,000.

For this example, we’ll use a 1,000 sq. ft. basement with a bathroom that’s already pre-roughed in.

How Much Space Do You Actually Have?

Most new homes being built today are around 3,000 sq. ft. total.
Cut that in half:

• 1,500 sq. ft. main level

• 1,500 sq. ft. basement

But you don’t get all 1,500 sq. ft. to finish. Here’s why:

• Storage: You’ll typically want at least 200 sq. ft.

• Stairs: They usually take up around 100 sq. ft.

• Mechanical areas: Sump pump, ejector pit, furnace, water heater — another 200 sq. ft.

After these deductions, you’re left with about 1,000 sq. ft. of usable finishing space in a typical 3,000 sq. ft. home.

Now Let’s Talk About the Real Cost of Finishing a Basement

Once you understand the space you’re actually working with, you can start understanding the real numbers behind a proper basement finish. And this is where a lot of homeowners begin to see why costs get inflated — and where honest contractors, like us, stand apart.

​

 1st. Cost of framing. Framing is the base of your basement. If your framing is not 100% perfect no matter what you do the rest of the steps will not fix it, so when someone who does not frame for a living be ready for a bad job the rest of the project. The best painters and drywall guys cannot fix bad framing. On a 1,000 square ft basement on average you will use 450 wall and ceiling studs and 25 pressure treated base plate studs.

People when measuring out a basement always forget to add ceiling studs and soffit studs to their total. As of today 2x4x8 studs are About $6.50 per board and pressure treated studs are about $10 a board. So our total so far is $4,8000.00 plus tax. Next we need nails, glue, concrete load nails and gas charges which many people do not think of when figuring cost of a basement. This will add on about $300.00 for a 1,000 square ft basement should take 3 good framers about 3-4 days to complete. Average labor for this is around $4,500 - $5,500.

Materials for framing $4,800.00 w/ tax

Labor for framing $4,500.00 no tax.

Total for framing $9,300.00 on average

​

 2nd. Cost of Insulation. This is a step you can do on your own with a good $25.00 staple gun and about $900.00 in materials. Its easy just put it between the wall studs and staple away. Insulation varies so talk to someone at the store.

Total for insulation $925.00 average.

​

 3rd. Cost is Electrician. Most electricians charge in 2 ways, either by the job or by the openings (outlets, canned lights, switches, etc.) Most electricians are between $80 - $125 per opening depends if they are supplying the materials. Lets say you are supplying the materials. For a 1,000 square ft basement you will average about $2,000 in conduit, wire, outlets, Switches, 20 canned lighting, light bulbs and covers. Average electrician will charge around $4,500 to $6,000.00 for this job. This is a 2 day job for 1 electrician. This is a step you should not do on your own.

Materials for electric $2,000.00 including tax

Labor for electrician $6,000.00

Total for electric $6,100.00

​

 4th. Cost of Drywall. This is a step you should not plan on doing no matter how good you think you are. A 1,000 sq. ft basement with drywall ceilings you can figure 120 sheets of drywall, 15 boxes of mud, 3 buckets of finish coat mud, 5 rolls of tape, bucket of screws and 1 box of corner bead. This step you want to have completed as quickly as possible due to drywall dust and glue fumes. You will have in materials about $2,000.00 in materials. A great drywall contractor should be able to hang all 120 sheets in 1 day and have 3 coats of mud sanded and finished in 7 days from start to finish. I have seen this step take home owners 3 months to complete and when they go to paint it is just horrific. I cant say it enough if you don't do something everyday for a living you are not the best at it.

Materials for drywall $2,160.00 w/ tax

Labor for drywall $9,000.00 average.

Total for Drywall $11,160.00

​

 5th. Cost of painting. This a step you might able to do if you are very good. I would still recommend a painter. You will need 20 gallons of primer and try to have it tinted to the color you plan on painting the walls. You will need 10 gallons of ceiling white flat. Next you will need 15 gallons of wall paint. A satin or eggshell would be best to be able to wipe down. Next you will need a paint sprayer to spray all your trim and doors,

Cost of paint $1,500.00 w/ tax

Labor for painter $4,500.00 average.

Total cost for painting $6,000.00

​

 6th. Cost of doors and trim. This is a step I would hire out as well, transportation for this you will need a truck or large van. You will need 300 linear ft of wall trim and we are going to use white for this example. Average 1,000 sq. ft. basement will have 6 doors. You will also need trim paint, Trim gun, nails, doorknobs, white chalk and glue. To make trim turn out spray the trim once it is all caulked and wood filled.

Materials for doors and trim $2,500.00 w/ tax

Labor to install and paint. $4,000.00

Total for doors and trim $6,500.00 average.

​

7th. Cost of flooring. 100% hire this one out. Lately Home Depot carpet has been beating everyone on price. We like to use the Nike padding they have with a nice 60 - 70 oz carpet. Average carpet with install is going for $41.00 per yard so figure $4,100.00 with doing stairs. If you plain on going with a good hardwood vinyl it will be about $7.50 a sq. ft including materials, Shoe and Labor $7,500 installed. Last choice is tile. Now tile is tricky to figure, right now the 6" x 24" tile is popular but it come with a price. The tile itself is not bad only about $2.00 a square foot, but installation is at $10 per sq. ft. 

​

Cost for carpet $4,450.00 w/ tax      Cost for Hardwood laminate $8,000.00 w/ tax      Cost for tile $13,000.00 w/ tax

​

Last step bathroom fixtures, Figure about $1,000 to $1,500 for Vanity, sink, Shower Head, Toilet and Vanity light, Tile will be another $4-500. Plumber, tile guy, drywallers already drywalled you are all in for $8,000.00 including labor.

​

 This gives us a total cost to finish your basement with Vinyl Hardwood a total of $44,135.00 on average w/ a 3 week completion time.

This gives us a total cost to finish your basement with Vinyl Hardwood a total of $55,000.00 on average w/ a 4 week completion time. With a bathroom.

​

 We hope this gives you an idea of how much to have all professional tradesman contracted out to do your basement.

​

 

If you are looking to have your basement finished and want it done right and quickly please feel free to give us a call. Thank you very much, James

331-452-3591