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If your home is one of the more valuable in your neighborhood already, or will become the most valuable with the addition, it might not make sense money-wise to add on because you will probably not recoup the cost of the addition should you decide to sell. In this case you might consider moving into a house that already suits your needs.
If you are comfortable with the neighborhood, and the addition will bring your home more up to par with the rest of the homes, it makes sense to add on. Of course this also is dictated by what type of addition/remodel you are proposing.
Check with a real estate agent in your area. They could help determine what makes sense for you since anything to do with real estate is very location-specific.

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Q: Is it better to move or do a home addition?
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