Finishing a basement improves the look of your space, insulates the area, dampens sound, and keeps you safe by hiding electrical outlets and wires. It may also increase your home’s market value. Read our guide below to learn how to finish your basement walls, how to properly prepare the walls before you get going on your project, and whether you should hire a professional.

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Before You Begin Finishing Basement Walls: Address Moisture Issues

Moisture in your basement is typical on hot, humid days, but if pools of water manifest regularly on the concrete floor, or you routinely find damp masonry, you must act. Moisture can lead to mold and mildew, which can trigger allergies and cause damage that leads to costly repairs.

This Old House general contractor Tom Silva addresses a wet basement in the video below.

You can waterproof your basement with the following methods:

• Applying a waterproof vapor barrier on foundation walls
• Improving the grading around your house so water flows away from it
• Installing a sump pump to move water away
• Installing drain tiles and French drains around the home’s exterior
• Installing gutters and extending gutter downspouts
• Sealing cracks with epoxy resin

Determine whether you need to install moisture-resistant materials with this test: On a cool, dry day, tape a 1-square-foot sheet of plastic onto the basement’s concrete wall. Make sure the tape covers the plastic’s perimeter, then wait 24 hours. If there’s visible water seepage after 24 hours, you need to get to work.

Research how to seal basement walls, and consider hiring a contractor if the job is not something you can handle yourself.

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Components of a Finished Basement Wall

Learn about the different parts of a finished basement wall below before you get to work.

• 2-by-4-inch stud wall: This is wall framing that’s attached to a concrete wall. It’s made of 2-by-4-inch wood or metal studs. The wall panels or drywall connect to it. 
• Concrete slab: This is the basement floor to which you’ll secure the stud wall.
• Drywall: This is construction material that creates indoor walls.
• Egress: This is the opening to the outside. A basement may have both window and door egresses.
• Insulation: This is a thermal barrier that helps the basement stay dry and keeps temperatures steady.
• Floor joists: These are horizontal beams of wood that serve as framing.
• Top plate and bottom plates: These are the top and bottom horizontal stud walls.
• Vapor barrier: This is material that prevents the flow of moisture to exterior walls. 
• Waterproof paint: This is sealant you apply to the basement’s interior concrete wall.

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Step 1: Apply for Building Permits (If Applicable)

You’ll need to consider permits when you’re planning a finished basement, even if you’re just focusing on the walls. If you plan to build partition walls or install new plumbing or electrical wiring, for example, then you must contact your local housing department. Building permits have a significant influence on the cost to finish a basement. Homeowners spend between $1,000 and $2,000 for permits on average.

You may encounter the complications below if you don’t have the proper permits in place:

• Fees or fines
• Having your project shut down
• Hosting an unsafe environment for workers
• Jeopardizing your ability to sell the home in the future
• Losing your homeowners insurance coverage

* Cost data in this article sourced from Angi.

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Step 2: Gather Necessary Tools and Materials to Finish a Basement

You’ll need a number of tools and materials to finish your basement walls with a do-it-yourself project. Begin your project by waterproofing your space, then gather everything below.

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Step 3: Waterproof Basement Walls

Waterproofing walls requires you to work on your home’s grading and exterior. Follow the steps below to waterproof basement walls: 

1. Plug up holes with hydraulic cement.
2. Recaulk exterior basement windows or doors.
3. Apply waterproof coating to the basement walls.
4. Install gutters and downspout extenders.
5. Install a sump pump if you live in an area that features a high water table.
6. Adjust your home’s grading so that water flows away from the house.
7. Install French drains where appropriate. 

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Step 4: Install Insulation in Basement Walls

There are several materials and methods you can use to insulate your basement, including those below.

• Bubble foil: These attach to basement walls with a simple adhesive.
• Fiberglass insulation: Install this with simple adhesive.
• Foam board: You can cut foam boards with a utility knife and secure them with masonry screws.
• Sprayed foam: Foam involves simple spray-on application.

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Step 5: Assemble and Install Basement Wall Framing

Drywall attaches to the wall frame, or the 2-by-4 stud wall. Follow the steps below to construct a skeleton for your walls:

1. Install blocking between joists using straight, treated lumber.
2. Snap a chalk line on the floor for the stud wall’s bottom plate.
3. Build the stud wall on the floor. Keep the bottom plate closest to the concrete wall. Build the stud wall so that it’s at least 1/4 away from the ceiling. If there’s already a drop ceiling, keep the stud wall beneath it. Build around window build-outs, wires, and pipes.
4. Secure the bottom plate to the floor using construction adhesive and concrete screws.
5. Secure the top plate to every joist and use shims if necessary.
6. If the floor is uneven, build from the bottom plate-up instead of using the tip-up method. 

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Step 6: Install Basement Wall Drywall

Measure and cut drywall so that it fits each wall. Use a level to mark straight lines, and account for any obstructions that you must cut around, such as electrical boxes. Use drywall adhesive on the studs, and firmly press a piece of drywall board into this for 1 or 2 seconds. Attach the drywall boards to the studs underneath with drywall screws. Continue across the room until you’ve covered your framing.

You might find you want to finish your basement walls with alternative materials such as cement board, which resists mold and rot.

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Step 7: Finish and Paint Basement Walls

The final step is to prepare your walls for painting. Spackle and sand over the screw holes to create a smooth surface, then begin painting. If your basement gets damp, use latex paint. It’s waterproof and won’t crack. It’s also low-odor, which is best if you don’t have strong basement ventilation. You can also choose mildew-killing paint, which prevents new mold growth.

Remember to use basement-compliant GFCI outlets. They will shut off whenever an electricity surge occurs, which will reduce the risk of electric shock if the basement floods.

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Professional vs. DIY Basement Finishing

The cost to install your drywall depends on the type, thickness, and finish of the drywall you use. You’ll only need to pay for tools and materials if you’re installing the walls as part of a DIY project.

If your home has had extensive water issues, or you aren’t comfortable tackling waterproofing, consider hiring a contractor. A reliable contractor will have the expertise to complete the job and comply with local building codes and regulations.

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Our Conclusion

Finished walls improve your basement’s aesthetic, cover dangerous exposed wires, and keep the area warmer in cold months, which can reduce your utility bill.

If you have experience using hand tools and building, consider finishing your basement walls, yourself, to save money. If you lack experience, hire a local contractor who can handle the installation, permits, and building codes. 

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FAQ About Finishing a Basement Wall

Should I use a modular basement wall system or traditional basement wall finishing?

You should use traditional basement wall finishing if your aim is to save money. A modular basement wall system has many benefits, but even a basic setup can be costly.

What is the least expensive way to finish basement walls?

The least expensive way to finish basement walls is to install drywall. Paneling is another option, but it requires more work and money to install.

How do you make unfinished basement walls look nice?

Waterproof what you have to make unfinished basement walls look nice. Then install a two-by-four stud wall, apply insulation, and secure drywall to the two-by-four wall frame.

What type of paint do you use on basement walls?

The best type of paint to use on basement walls depends on the wall material. If the wall is concrete, apply waterproof paint. 

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