If you’re considering transforming your basement in 2025, you’re probably wondering, “How much does a basement remodel cost in Lancaster?” It’s a smart question to ask — and the answer depends on what kind of space you want to create. Whether you're dreaming of a cozy family room, a guest suite, or a full rental unit, understanding local basement remodeling costs is crucial to budgeting smartly and avoiding surprises.
Unlike the average costs of kitchen remodels and bathroom remodels—which generally incorporate the same basic features—basements are a blank canvas of possibility.
Are you looking for a home gym, where you can work out year-round? Do you want entertainment space for the kids to hang out with friends? Maybe you need a quiet spot for your home office, or private accommodations for overnight guests.
All you have to do is look through our Lancaster basement remodeling gallery to see that there's no one-size-fits-all when it comes to basement remodels.Each household has different needs, which makes talk of "average" costs a little challenging.
That's why we're going to approach this conversation by looking at some common uses of finished basements, and the basement remodeling costs generally associated with each.
In an effort to answer this question with more than "it depends", let’s look at four types of basement remodels in Lancaster, PA. The scopes of work and cost ranges below are based on Lancaster finished basements we have completed over the past five years.
For those looking for a utilitarian basement, a finished storage area can deliver big change for a relatively low cost. While not considered living space, finished storage takes the typically dim and dreary raw elements of a basement and turns them into a cleaner, brighter, more pleasant environment.
Finished Storage typically features:
Basement Remodeling Cost for Finished Storage (Economy to Midrange Quality): $20,000–$40,000+
Basement Remodeling Cost for Finished Storage (Upscale Quality): $40,000–$80,000+
A popular use for Lancaster finished basements is creating a home gym, or general purpose rec room. These remodels typically transform the basement into a fully finished room. Mechanicals like the furnace and hot water heater are often hidden behind walls but still accessible for maintenance.
Home Gyms/Rec Rooms typically feature:
Basement Remodeling Cost for a Home Gym/Rec Room (Economy to Midrange Quality): $65,000–$85,000+
Basement Remodeling Cost for a Home Gym/Rec Room (Upscale Quality): $80,000–$200,000+
Example: Scott & Lauren's Lititz Basement Remodel
Creating a finished entertainment space in your basement pays dividends in fun memories. These projects can include many different features depending on the homeowner’s specific interests, but generally they will include some special artistic or technical elements that make the basement a true destination. These may include a bar area, accent walls, or custom cabinetry. Basements built for entertaining may also include a small bathroom.
Entertainment Zones typically feature:
Basement Remodeling Cost for an Entertainment Zone (Economy to Midrange Quality): $85,000–$140,000+
Basement Remodeling Cost for an Entertainment Zone (Upscale Quality): $140,000–$275,000+
Example: Allyssa & Heather's Manheim Township Basement Remodel
Those looking to make their finished basement a full, luxurious extension of their home may consider turning it into a guest suite or personal getaway. These projects typically create multiple rooms in the basement, often including a home office, private bedroom, and/or full bathroom.
To maximize use of space and meet code requirements, these finished basements may involve significant relocation and reworking of mechanicals. Bedrooms will also require an egress window and a closet.
Guest Suites/Home Getaways typically feature:
Basement Remodeling Cost for a Guest Suite (Economy to Midrange Quality): $110,000–$180,000+
Basement Remodeling Cost for a Guest Suite (Upscale Quality): $180,000–$300,000+
Example: Reilly & Cierra's Washington Boro Basement Remodel
The average cost per square foot for basement remodeling in Lancaster is $80–$150 per square foot, depending on finish quality, complexity, and what rooms are included.
As previously stated, the biggest factor that will impact the cost of your basement remodel is how you intend to use the space.
We've been remodeling basements in Lancaster for nearly two decades, and in that time we've seen that the purpose of a finished basement is what drives budgetary considerations.
However, here are all of the factors that come together to determine the cost of your Lancaster basement remodel:
Scope of the Remodel: The extent of your remodel is one of the biggest cost drivers. Are you just finishing the basement with basic walls and flooring, or are you adding complex elements like a bathroom, kitchenette, guest suite, or multiple living areas? More extensive scopes require more materials, labor, design work, and potentially permits and inspections.
Materials: From flooring to lighting, the quality and type of materials you choose can dramatically impact cost. Durable but affordable materials like LVP (luxury vinyl plank) are great for many basements, but if you opt for high-end tile, custom millwork, or specialty finishes, your investment will grow quickly.
Labor: Labor is typically one of the largest portions of a remodeling budget. Projects requiring licensed electricians, plumbers, or HVAC specialists will be more expensive, especially if your project includes complex systems or high-end finishes. Paying for skilled professionals ensures the work is done right and up to code.
Basement Size: The overall square footage of your basement directly affects the cost. More space means more materials (flooring, drywall, trim) and longer labor hours. Larger basements also allow for more rooms and features, which adds complexity and cost.
Appliances & Plumbing: Adding a bathroom, bar, laundry room, or kitchenette will require new plumbing lines and hookups. Plumbing is one of the more expensive trades in a remodel. Appliance installation (such as washers, dryers, or beverage fridges) also adds to labor and material costs.
Permits & Egress: Most finished basement projects require local permits. If your remodel includes a bedroom or separate living area, an egress window may be required for fire safety. These components not only cost money to install but also add to timelines due to inspections and approvals.
Custom vs. Standard Features: Custom cabinetry, built-in storage, custom bars, and entertainment centers elevate both aesthetics and functionality, but they also raise the price. Standard or prefabricated components are typically more budget-friendly and faster to install.
Unexpected Issues: Once demolition begins, hidden issues such as foundation cracks, water damage, mold, or outdated wiring can emerge. These need to be addressed before continuing construction and can result in significant additional costs.
Change Orders: When homeowners change materials, layouts, or features after the project has started, it often causes delays and cost increases. Change orders might seem small but can quickly add up depending on their complexity and timing.
Project Location: Costs can vary across Lancaster depending on factors like proximity to suppliers, neighborhood permitting processes, and local labor rates. Higher demand areas may carry a price premium.
The Company You Choose: Working with a reputable contractor like McLennan Contracting gives you peace of mind. Our design-build approach minimizes surprises, keeps your project on track, and ensures quality from start to finish.
Bathroom Additions: Installing a new bathroom in a basement requires plumbing rough-ins, waterproofing, quality tile work, and code-compliant ventilation — all of which are labor- and material-intensive.
Custom Bars or Kitchenettes: These spaces often include cabinetry, countertops, plumbing, and appliances. Custom design and high-end finishes can raise costs quickly.
Plumbing and Electrical Work: Adding new plumbing or rerouting existing lines, installing dedicated electrical circuits, and upgrading service panels for basement use can represent a large portion of your budget.
Egress Window Installation: Required for legal bedrooms, egress windows involve excavation, framing, and waterproofing — which can make them a costly addition.
Moisture Management & Insulation: Proper insulation and waterproofing are critical to a healthy, dry basement. Solutions like sump pumps, drainage systems, vapor barriers, and insulation add upfront cost but prevent future issues.
Home Theaters with AV Wiring & Soundproofing: These rooms often require specialized framing, sound insulation, lighting design, acoustic treatments, and professional AV setup.
Custom Built-ins and Cabinetry: From entertainment centers to built-in desks and bookshelves, custom millwork adds visual appeal and function — along with increased cost due to labor and materials.
Within the compact service range of Lancaster County, pricing can vary due to locale-based factors. Let's explore the cost nuances related to basement renovations in a few of our favored locations within Lancaster.
Lancaster City has seen an uptick in restorations and remodels recently, adding to its historic allure. Yet, the city presents distinct challenges for remodeling projects.
Many homes in Lancaster City were constructed before standard building practices and sheet good manufacturing. This means access tends to be a key issue, and installations of modern materials often need more than a straightforward 1:1 swap. Older homes may also require specialized management of lead paint, asbestos, and silica in line with OSHA and EPA standards.
Logistical hurdles are another factor, impacting the cost of Lancaster City remodeling projects. Job site parking often necessitates permits, and the availability of tools and equipment, outdoor workspace arrangements, and on-site material storage pose challenges within the city's bounds. Considering these elements, remodeling in Lancaster City could be 15%-20% pricier than in certain Lancaster suburbs.
Manheim Township primarily features newer homes, built according to standard practices from the 1980s onward. Most neighborhoods are designed for easy vehicle, equipment, and material access. An over-the-counter mechanical permit simplifies the process for non-structural or zoning change projects.
Even though remodels in Manheim Township tend to be more higher ticket due to a larger average project scope, they are usually cost-effective compared to other areas in Lancaster County.
Lititz, a beloved community with a delightful historic downtown and scenic streets, presents unique opportunities and challenges for renovations.
Similar to Lancaster City, older homes in downtown Lititz demand specific building methods and customization. Limited parking and accessibility challenges could hike up the cost of a basement remodel by up to 10%.
However, the suburban neighborhoods of Lititz, like those of Manheim Township, consist of newer homes that provide ample space for the logistics of a remodel.
Leola's neighborhoods, most of which were built in the 1980s or later, present an ideal opportunity for cost-effective basement remodels. Its popularity among Lancaster residents makes Leola a top choice for high ROI from remodeling. Home remodels in Leola are usually less expensive due to the logistical ease, although project size and finishes will ultimately decide the final cost.
The common theme here is that the age of the home and logistical considerations are two major factors influencing basement remodeling costs at a neighborhood level. These principles apply to other charming communities in Lancaster, such as Strasburg, Millersville, Hempfield, Landisville, and Manheim. Historic districts tend to be more expensive, while suburban neighborhoods built more recently have fewer logistical costs.
A well-designed basement remodel can offer an excellent return on investment. Homeowners in Lancaster often recoup 50% to 75% of their remodeling costs, depending on the type of project and quality of finishes. More importantly, a finished basement increases your home's usable square footage and livability — which is something buyers value highly.
Keep in mind that any type of basement can cost more than the ranges listed in this post. It all depends which features matter most to you, and what needs to be done to make your space safely habitable. That’s why we walk our clients through our Design-Build process to determine the true cost of their Lancaster basement remodel.
By clarifying and honing your vision, we can establish which elements will be needed, and define the specific scope of work and costs required for your finished basement.
At McLennan Contracting, we specialize in creating personalized, functional basement spaces that enhance everyday life. As a design-build firm, we handle everything from vision to construction with a streamlined process, clear communication, and attention to detail. Whether you want to add living space, create a guest suite, or build your dream entertainment room, we’re here to help bring it to life.
The cost of a basement remodel in Lancaster varies based on your goals, space, and finish selections. Whether you want a simple finished space or a high-end guest suite, understanding your options helps you plan smart. At McLennan Contracting, we’re ready to walk you through every step — and help you build a basement that works beautifully for your home and family.