Transforming Outdoor Sheds into Functional Living Spaces

Dreaming of gaining extra square footage without breaking the bank on remodeling?

Your backyard shed doesn’t have to be a dusty eyesore cluttered with random gardening equipment and old holiday lights. By converting your outdoor shed into livable space, you could create serious value for your home.

Here’s the best part…

Doing a shed conversion is:

• Cheaper than adding onto your house
• Faster than most construction projects
• Extremely versatile

Follow along and we’ll show you how to make it happen.

What You’ll Learn

1. Why More People Are Converting Their Shed
2. How to Plan Your Shed Conversion
3. Best Uses For Converted Shed Space
4. How to Properly Prepare Your Shed
5. Insulation and Ventilation Explained
6. Getting the Right Permits for Your Build
7. Add some finishing touches!

Why More People Are Converting Their Shed

Shed conversions are blowing up because they offer real solutions to homeowners.

In fact, a recent survey found that 58% of homeowners in the United States were looking to get creative with how to expand their living space. Shed conversions were at the top of that list.

With rising home prices and the increasing lack of space in major cities, homeowners are finally catching on.

By starting with quality outdoor sheds there is a strong foundation to work off of. A sturdy shed can become anything you need from an office space to a guest bedroom.

Plus, the shed and outdoor storage market size is $7.2 billion in 2024 and is expected to reach nearly $13 billion by 2034. With numbers that high, it’s clear people want to use their sheds for more than just storage.

Think about how great it would be to:

Walk out to your back door and have immediate access to a home office. Stop fighting over desk space at the kitchen table.

Instead of that unused shed taking up space in your backyard. It could be the most useful room on your property.

Best Uses For Converted Shed

Before we dive into how to convert your shed. Stop for a second and think about what you really need.

Every shed conversion should have a purpose.

Here are some of the most popular ways people are using their backyard shed.

Home Office

Working from home is more popular than ever. If you’re not tied down to an office location. There’s no reason you can’t work from the comfort of your own home.

A backyard office is quiet and provides separation from distractions. Say goodbye to barking dogs and nosy family members during your conference calls.

Make sure you install large windows for natural lighting. Plus add the proper electrical outlets and reliable WIFI connection.

Guest House

Running out of room for out-of-town guests? By converting your shed into a guest house. Everybody wins!

Your visitors get their own private space. While you still have access to your entire home.

Typically you will want to add insulation, basic plumbing, and proper climate controls. Comfortable furniture rounds out the basics.

Art Studio or Workshop

If you’re the artsy type a converted shed makes the perfect workspace.

You can focus on your art without making the main part of your house dirty. Not only that but you have all the time you need to perfect your hobby.

Workout Room

Do you hate going to the gym? Maybe you want to save some money by not having a monthly membership. By converting your shed you can have your own personal workout room.

Designing Your Shed Conversion

Alright, now it’s time to do some work. Here are some steps to help guide you through building your backyard oasis.

Check Existing Structures

If you already have a shed on your property you will want to do some inspection.

Make sure there is no rotten wood from water damage or pests. Check that all the walls are sturdy and able to handle reconstruction.

Ideally, you should start with a well-built storage shed. I personally like to go with metal storage buildings because you know they will last. Nothing is worse than trying to convert a cheap plastic prefab shed.

Plan it Out

You will want to take the proper measurements of your workspace. Carefully plot out where furniture will go and how you plan to utilize every square inch.

Consider:

• Traffic flow and entrances
• Window placement for extra lighting
• Where to place electrical outlets
• Storage options and furniture

Insulation is Key

Unless you plan on using your converted shed during all four seasons. You will want to add some proper insulation.

Insulation will keep your new room nice and cozy during the winter. In the summer it helps keep the heat out and prevent condensation.

There are many different types of insulation materials. Popular ones for sheds include:

• Foam board insulation for walls
• Spray foam for cracks and gaps
• Reflective insulation for hotter climates

Don’t forget to add electricity and whatever utilities you need.

Getting Electricity and Utilities Set Up

Alright, this wouldn’t be much of a home office without some electricity. Make sure you hire a professional electrician to get things hooked up.

They will be able to help point you in the right direction for proper electrical needs. A home office will need less capacity than let’s say a woodworking shed.

Getting the Proper Permits

This part is going to depend on what city you live in.

In most cases, you are going to need some sort of permit and/or inspection when converting your shed. Make sure to check with your local city guidelines before you start building.

Things to look for:

• Electrical and plumbing permits
• Building permits for structural changes
• Zoning permits for usage changes

Some cities don’t allow you to use an outside building as a living space or home office. You also might be required to have your shed a certain distance away from property lines.

If you have a homeowners association, make sure to check with them as well. Getting into trouble with the HOA can cost you.

Comfortable All Year

This all wouldn’t matter if you never stepped foot in your converted shed. Let’s make sure it’s a welcoming space throughout the whole year.

Heating and Cooling

Because these builds are typically on the smaller side. They heat up and cool down very quickly.

Some great options for climate control include:

• Mini-split HVAC systems
• Window air conditioners
• Electric heaters
• Ceiling fans

Ventilation

You don’t want to feel like you are suffocating every time you enter your build. Make sure you add ventilation to prevent moisture build-up.

Install vents either on the roof or the top of your walls. Additionally, install windows that open to allow for fresh air.

Finishing it Off

Paint the inside of your build with neutral colors. Not too bright you feel overwhelmed. But light enough to make the space feel bigger.

Make sure you have ample lighting for night time. Additionally, you will want to add flooring that feels good under foot.

Conclusion

Congrats! You just learned how to turn your outdoor shed into livable space.

To sum it all up:

• Determine what you want to use your shed for.
• Don’t forget to do your research on permits!
• Make sure to add insulation to make it comfortable.
• Add those finishing touches to make it feel like a home.

Whether you want an office space. Guest quarters, or an arts and crafts room. Your backyard shed has the potential to be amazing.

Take that ugly dusty storage shed and turn it into your favorite room of the house.