Ankeny families who have outgrown a ranch or a split-level usually face two ways to add space: finish or expand the basement, or build up with a second story. This guide compares the two on cost, permits, disruption, appraisal value and how each one fits Ankeny’s housing stock, so you can pick the direction that fits your lot and your budget.
TLDR: Finishing a basement in Ankeny typically costs about $35,000 to $75,000 and adds space that appraisers count at a discount. A second-story addition typically runs $150,000 to $300,000 or more, counts fully as living area, and means moving out during construction. Go down if you need a family room, a bedroom and a bath on a budget. Go up if you need bedrooms above grade and the lot cannot spread out.
Ankeny’s housing stock sets the choice
Ankeny grew fast. Much of the city is 1990s and 2000s two-story and ranch homes on lots that do not leave room to build out. That leaves two directions: down into the basement or up with a second story.
Search data on our site shows “basement addition contractor” and “home addition builder” searches in the Des Moines metro running well over a thousand impressions, and Ankeny is one of the cities behind them. The two paths have very different price tags and very different results at appraisal.
Busy Builders has completed more than 1,285 projects across Central Iowa since 2020, including two-story additions like the one in our project photos, with an upper deck and exterior finishes matched to the original house.
What each path actually involves
Pro Tip 1: Name the rooms you need before you pick a direction. “Two bedrooms and a bath” and “a family room and a bath” point different ways.
The table below compares the two on the basics.
| Factor | Basement finish or expansion | Second-story addition |
|---|---|---|
| Typical scope | Family room, bedroom with egress, bath, storage | Two to three bedrooms, one or two baths, hall |
| Structural work | Egress window, possible beam or column changes | Removing the roof, reinforcing the foundation and walls |
| Foundation | Existing, checked for moisture and depth | Often needs evaluation and reinforcement |
| Live in the house during work | Usually yes | Usually no for six to twelve weeks |
| Permits | Building, electrical, plumbing | Building, structural review, electrical, plumbing, HVAC |
| Appraisal | Below-grade, credited at a discount | Above-grade, counts as gross living area |
The appraisal row matters more than most people expect. Under Fannie Mae’s appraisal rules, below-grade finished space is reported separately and is not part of gross living area. Appraisers often credit it at roughly 60 to 75 percent of above-grade value.
Pro Tip 2: If resale value per dollar is your main driver, above-grade space wins on paper. If usable space per dollar is the driver, the basement wins by a wide margin.
Cost in Ankeny
These are planning estimates for the Ankeny market. Actual costs vary by scope, materials, site conditions and current pricing.
| Project | Typical size | Planning range | What pushes the top of the range |
|---|---|---|---|
| Basement finish, family room and bath | 800 to 1,000 sq ft | About $35,000 to $60,000 | Wet bar, custom built-ins, tile |
| Basement finish with egress bedroom and bath | 900 to 1,200 sq ft | About $50,000 to $75,000 | Second egress, full bath, ceiling height fixes |
| Partial second story over a garage | 400 to 600 sq ft | About $90,000 to $160,000 | Foundation reinforcement, stairs |
| Full second story on a ranch | 1,000 to 1,400 sq ft | About $150,000 to $300,000 or more | Structural work, new roof structure, HVAC |
Our published starting point for additions is about $300 per square foot, and the Des Moines metro range often runs $250 to $500 depending on scope and finish.
Pro Tip 3: A full second story on a 1990s Ankeny ranch usually needs a structural engineer’s review of the existing foundation and walls. Budget for it before you budget for anything else.
Pro Tip 4: On the basement side, the egress window is the cost item people forget. Iowa requires a 5.7-square-foot net clear opening for a basement bedroom. Plan about $2,500 to $5,000 for it.
Permits and inspections in Ankeny
Ankeny runs its own building department. Both projects need a building permit; a second story also needs structural review and usually an HVAC permit for the added load. Start at the City of Ankeny site for the current application and fee schedule.
Pro Tip 5: Ask the city about the current code edition. Iowa adopted the 2024 IRC statewide under Iowa Administrative Code 481-301.8, and cities pick up the new edition on their own timelines.
Here is what to expect on the permit side.
| Step | Basement finish | Second-story addition |
|---|---|---|
| Plan review | Typically one to three weeks | Typically three to six weeks with structural review |
| Inspections | Rough-in, insulation, final | Footing or foundation, framing, rough-in, insulation, final |
| Egress | Required for any bedroom | Required for any bedroom |
| Energy code | Basement wall insulation R-15 continuous or R-19 cavity | Full envelope, IECC Climate Zone 5 |
Pro Tip 6: Ankeny plan reviewers see a lot of basement finishes. A clean set of drawings with the egress detail and the ceiling height called out moves fastest.
Illustrative scenario: An Ankeny family in a 1998 two-story finishes 950 square feet with a bedroom, egress window, three-quarter bath and family room. Eight weeks, about $58,000, and they stay in the house.
Illustrative scenario: A family in a 1,400-square-foot ranch near Prairie Trail adds a full second story with three bedrooms and two baths. Structural review takes five weeks, construction takes 14, and they rent for three months. About $240,000.
Illustrative scenario: A couple in an Ankeny split-level adds a 500-square-foot bonus room over the garage instead of a full second story. Twelve weeks, about $120,000, and they keep living downstairs.
Living through each one
A basement finish is noisy for a few weeks and mostly out of the way. A second story removes the roof over your head. Most families move out for the structural phase.
Pro Tip 7: If you go up, plan the temporary housing cost into the budget. Three months of rent in Ankeny is real money.
Pro Tip 8: If you go down, test for radon first. About 5 in 7 Iowa homes test above the EPA action level, and the finish is the right time to add mitigation.
Pro Tip 9: Basement ceiling height must be at least 7 feet for habitable space. A 1990s Ankeny basement usually has it; a 1970s one may not.
Pro Tip 10: A second story changes your HVAC load. Plan for a second system or a zoned system, priced by a licensed HVAC subcontractor.
Pro Tip 11: Match exterior materials on a second story. The addition in our photos reads as original because the exterior finish, trim and railing match.
Pro Tip 12: Repeat customers are a pattern in our reviews; one family had a deck built and then came back for the basement. Sequencing the smaller project first is a legitimate plan.
The table below sums it up.
| If you need | Direction | Planning budget |
|---|---|---|
| A family room and a bath | Basement | About $35,000 to $60,000 |
| A bedroom, a bath and a family room | Basement with egress | About $50,000 to $75,000 |
| One more bedroom above grade | Partial second story | About $90,000 to $160,000 |
| Two or three bedrooms above grade | Full second story | About $150,000 to $300,000 or more |
Both directions add real space. The right one depends on the rooms you need and the money you have.
Frequently Asked Questions
Q1: Is it cheaper to finish a basement or add a second story in Ankeny? Finishing a basement is far cheaper per square foot, typically about $35,000 to $75,000 for a full finish versus $150,000 or more for a full second story. Basement space appraises at a discount, though. Pick based on the rooms you need.
Q2: Does a finished basement count as square footage? Not as gross living area. Below-grade space is reported separately on the appraisal and usually credited at 60 to 75 percent of above-grade value. It still adds value and it adds usable rooms.
Q3: Can my Ankeny ranch support a second story? Many can with reinforcement; some cannot without major foundation work. A structural engineer’s review of the foundation, walls and headers answers the question. Budget that review first.
Q4: Do I have to move out for a second-story addition? Usually yes, for the structural phase when the roof comes off, typically six to twelve weeks. Basement finishes almost never require moving out.
Q5: What does a basement bedroom in Iowa require? An egress window with a 5.7-square-foot net clear opening, a sill no higher than 44 inches, and at least 7 feet of ceiling height. Iowa’s code cites the state’s R319 substitution for egress. Plan about $2,500 to $5,000 for the window.
Q6: How do I start? Call: 844-435-9800. We will walk your house, look at the basement and the structure, and price both directions honestly.
Key Takeaways
Basement – About $35,000 to $75,000, live in the house, appraises at a discount. – Egress window and radon test are the two non-negotiables.
Second story – About $150,000 to $300,000 or more, full living-area credit, move out for the structural phase. – Structural review before anything else.
Either – Ankeny permit, licensed trades, matched finishes.
Price Both Directions on Your Ankeny Home
Busy Builders is a registered Iowa contractor with 1,285+ completed projects across Central Iowa since 2020. We build basement finishes and second-story additions and we will tell you which one fits your house. Free consultation. Written warranty on workmanship (details provided in your contract).
Call: 844-435-9800
Disclaimer: This article is for general information and is not project-specific advice. Cost figures are planning estimates that vary by scope, materials, site conditions and current pricing. Appraisal and resale figures are illustrative and not financial advice; actual value changes vary by market. Permit requirements and code editions vary by city and jurisdiction; verify current requirements with the City of Ankeny before starting any project. Structural changes, including second-story additions and beam or column work, require evaluation by a qualified professional. Radon levels vary by home; test before and after, and attribute statistics to Iowa HHS. No specific outcomes are guaranteed. Consult a registered contractor; electrical, plumbing and HVAC work is performed by licensed subcontractors.
Busy Builders | Full-Service Construction and Remodeling | Serving Central Iowa Since 2020
Link Verification Checklist
Internal: /ankeny/, /basement-finishing/, /home-additions/ (all live). External: selling-guide.fanniemae.com B4-1.3-05, ankenyiowa.gov, legis.iowa.gov ACO 481.301 (all 200). Proof: op-project-count, photo-two-story-addition, rev-repeat-customers.
