With the Southern California real estate market still in the midst of a major downturn, many people who once thought about relocating are now considering remodeling or adding-on instead.

People who wanted to have the added space in a new home for their family will now take steps to add this desired space to their existing home. And while the housing market is down, the cost of remodeling is up.

The reason is the higher cost of building materials. Everything from 2' x 4's, to concrete, to copper piping and wires have all doubled, and in some instances tripled over the last five years. It is all due to the basic rule of business; the law of supply and demand.

The demand for building materials is at an all time high from countries like India and China that are feverishly trying to build out their infrastructure to keep up with the demand from their ever growing population.

And when you add in the increasing cost of oil, all of your petroleum based products, PVC, plastics, etc. are increasing as well. Oil prices have also increased the cost of every product imported to the U.S., due to increased transportation costs.

All this combined makes for higher material costs for your home remodel, prices that can reach $225 a square foot.

So, adding on a 20' x 20' room to your house can easily run you $90,000. Not to mention the time that you may have to be out of your house during the remodel and the inconvenience of having your house in varying states of disarray. So what is a homeowner to do?

Consider the garage! The garage is a room most of us already have in their house. So, instead of having to build a new 400- or 600-square-foot structure, why not leverage the investment you already have in your two or three car garage.

Finishing your garage could give you the additional family space you need, while also giving you some additional storage space in a fraction of the time it would take for a major remodel.

Heck, it might even allow you to get rid of you monthly self storage unit that is costing you hundreds of dollars a month.

Things to consider doing to your garage.

1. Finish the walls. Much like all your other rooms in your house that are finished drywall, why not do the same to your garage? Or better yet, slatwall your garage walls. Slatwall provides the finished look of drywall but it is more durable and practical. Slatwall is fireproof, waterproof, and bug proof. Plus the flexibility of the Slatwall allows you to hang anything on wall, move it anytime and never have to worry about putting holes in your wall like you would with drywall.

2. Finish your ceiling. By finishing your garage ceiling, you again make the garage look like your other finished rooms in your home, however now you have just created a garage attic that is perfect for much needed storage.

3. Add overhead racks. Installing overhead storage racks is another way to give you much needed storage space while taking advantage of the existing overhead space you already have. Like attic storage space, these types of racks are perfect for seasonal items, luggage, personal files/records or items you don't access often.

4. You can never have enough cabinets. Garage cabinets are perfect for storing items that you need to have access to more often than holiday decorations. Perfect for sporting equipment, gardening tools/supplies, pantry items and children storage. There are a wide variety of cabinets from resin, wood and metal. Custom built cabinets provide a higher end look much like you might add to your utility room, game rooms or entertainment center. Again, these types of cabinets will add to the overall look of the garage, making it similar to other rooms in your home.

5. Floor it! The floor in your garage is the first thing people see when they walk into the room. As matter of fact, 72 percent of all Americans enter their home through their garage. You probably have already spent a lot of money on carpet, hardwood or travertine to increase the beauty of your home's entry way. Why not do the same to the floor of the room you enter the house more than any other. While aesthetics are important, for the garage you need something practical as well. Epoxy floors are extremely popular for the garage floor. They look great, are extremely durable, hide dirt well and are easy to clean. Interlocking (polypropylene) tiles are also very popular. With the tiles you can designate different areas of the garage by different colored tiles. Have two of your garage stalls one color for your cars, say gray and the third stall a different color, say blue for your workout area. Or for added fun, include a full size checkerboard or hop-scotch design. Perfect if you're going to use the garage as a play room as well.

6. Light it up. Gone are the days of the dark dingy garage. Once you have completely remodeled your garage, it looks great and now has tons of storage, make sure you have enough lighting. This is an area that is commonly overlooked by the homeowner, but makes a world of difference in the overall appearance and feel of the garage.

So don't let the depressed real estate market or the increase in home remodeling costs get you down.

Reorganize your garage for a fraction of the time and cost of adding onto your home and still get the additional living space you want and the storage everyone needs.