You’re standing on a patch of grass. It’s raining. You have a flimsy net, a handful of weeds, and a massive amount of debt. Welcome to the island. Honestly, the first thing anyone thinks about after landing in Animal Crossing: New Horizons isn't the museum or the flowers—it's getting out of that cramped, sweaty tent.
Tom Nook is a mogul. He’s basically the only game in town when it comes to real estate, and he knows it. If you want more space for your ironwood kitchenettes and those weirdly realistic snapping turtles you keep as pets, you’re going to have to play his game. Animal crossing new horizons house upgrades are the backbone of the entire gameplay loop. You catch fish, you sell them, you pay the tanuki, and he hammers some wood together while you sleep. Simple, right? Well, sort of. There’s a specific rhythm to it that most people miss, and if you don't plan your storage needs, you'll end up with a basement full of clutter and a bank account at zero.
The Tent Phase is Short, Thank Goodness
Moving from a tent to a house is the only time you’ll use Nook Miles for your mortgage. It costs 5,000 miles. You get these by basically living—pulling weeds, talking to neighbors, or just not dying. Once you pay this off, the "real" debt starts. The first actual house is small. Tiny. It’s a 6x6 grid. You might think that’s enough space for your sleeping bag and a radio, but it fills up fast.
The moment that house is built, you unlock the ability to store items. This is the real game-changer. No more dropping 40 stacks of wood on your beach like a digital hoarder. But here is the thing: every time you upgrade, your storage capacity jumps. It starts at 80 slots. That feels like a lot for about twenty minutes until you realize you need to save every seasonal DIY ingredient you find.
Expanding the Floor Plan: The 198,000 Bell Gamble
Your first expansion makes the main room bigger. It goes from 6x6 to 8x8. This doesn't sound like much on paper, but in terms of interior design, it’s massive. You can finally fit a rug and a table without walking over your bed.
This is where the grind begins. You owe Tom Nook 198,000 Bells. Most players start frantic fishing at this point. If you’re lucky, you’ll find an island full of tarantulas or scorpions, but usually, you're just selling sea bass for 400 Bells a pop. It’s a slog. You have to be okay with the slog.
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The Three Side Rooms: Choosing Your Identity
Once the main room is maxed out, Nook lets you add three side rooms. North, East, and West. Each of these is a 6x6 space. You don't get to choose the order if you want to be efficient, but honestly, it doesn't matter. Most people turn one into a bathroom because apparently, even digital villagers need a place to sit on a golden toilet.
The cost for these is:
- 348,000 Bells for the first one.
- 548,000 Bells for the second.
- 758,000 Bells for the third.
Wait. Look at those numbers. They jump fast. By the time you’re working on the third side room, you’re looking at nearly a million Bells just to have a slightly larger house. And your storage only goes up to 320 slots. If you're a completionist, this is where you start eyeing the Stalk Market. Daisy Mae and her turnips are your only hope for paying these off before the next decade.
Going Vertical: The Second Floor and the Basement
The second floor is arguably the coolest part of any animal crossing new horizons house upgrades journey. It’s a huge 10x6 space. It feels like a loft. It costs 1,248,000 Bells. Yeah. Over a million.
At this stage, you also unlock the ability to customize your house’s exterior. You can change the roof color, the siding, and even the shape of your mailbox. It’s the first time the house actually feels like yours and not just a generic asset Nook plopped onto the sand.
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Then comes the basement. The final frontier. 2,498,000 Bells. It’s another 10x6 space. The best part about the basement? It’s the only room where the wallpaper and flooring don't have to follow the "rules"—you can use those cool animated wallpapers from Saharah without it feeling weird. Plus, paying off this final debt gives you the ultimate reward: Free exterior renovations for life. No more paying 5,000 Bells just to change your door.
Storage is the Secret Boss
Most people think the house is about the rooms. It’s not. It’s about the storage. After you pay off the basement, you can keep talking to Nook to expand your storage even further.
We’re talking about moving from 1,600 slots to 2,400, then 3,200, and eventually 4,000 slots. But hold on—this isn't part of the mortgage. You have to pay for these storage expansions upfront. No loans. Cold, hard Bells.
- The 2,400 slot upgrade costs 500,000 Bells.
- The 3,200 slot upgrade costs 700,000 Bells.
- The 4,000 slot upgrade costs 900,000 Bells.
It is expensive. But if you're the kind of player who has 50 different types of fencing and every single color of the "Simple Panel," you absolutely need it.
Why Some People Stop Early
You don't actually have to pay off the final basement loan. Nook doesn't send debt collectors. There’s no interest. If you’re happy with the space and don't care about free renovations or the "Success!" Nook Miles achievement, you can just... leave it.
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I’ve seen plenty of islands where the player has a gorgeous, fully-decorated five-room house but a perpetual debt of 2.4 million Bells. It's a valid way to play. The game doesn't punish you. It just sits there in your ABD, a little reminder that you're technically a millionaire who refuses to pay for their basement.
Speeding Up the Process
If you’re looking to blast through these upgrades, stop catching fish. Well, don't stop entirely, but focus on the "Money Rock" every day. Find your glowing gold spot on the ground and bury 10,000 Bells there to grow a Money Tree. It’s a guaranteed 30,000 Bell return every few days.
Also, watch the hot items at Nook’s Cranny. If the hot item is something like a "Pile of Cash" or a high-end furniture piece you have the materials for, spend the afternoon crafting. You can double your money easily.
Essential Strategy for New Players
- Prioritize the first house upgrade immediately. Getting that first 80-slot storage is the difference between enjoying the game and being frustrated by inventory management.
- Don't ignore the DLC. If you have Happy Home Paradise, you eventually unlock the ability to resize rooms on your main island, which adds a whole new layer to the house upgrade system.
- The Stalk Market is a risk, but a necessary one. Use online trackers to find islands with high turnip prices. It is the only way to pay off the 2.4 million Bell loan without losing your mind.
- Talk to your villagers. They often give you furniture that fits the "vibe" of your current house size, and sometimes they'll even buy your old junk for more than the Nooks will pay.
The house in New Horizons is more than just a place to sleep. It’s a trophy. It shows how much time you’ve put into your island, how many bugs you’ve caught, and how many times you’ve humored a raccoon in a Hawaiian shirt. Whether you stop at the three-room stage or go all the way to the 4,000-slot storage expansion, just make sure you’re building something you actually want to walk into every day.
Next, head over to your ABD at the Resident Services kiosk. Check your current balance and see if you’re close to that next 548,000 Bell milestone. If you are, go grab your fishing rod—the pier is usually the best spot for those high-value Marlins this time of year.