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Remove Wood Paneling and Drywall a Basement — Paneling Out, Walls New

Dark 1970s or 1980s paneling nailed to furring strips on a block wall — taken down to see what is behind it, and replaced with flat, finished drywall.

To remove wood paneling and drywall a basement, JMB Builders takes the paneling off, checks the furring strips and block wall behind it for moisture, adds insulation to code where the wall has none, then hangs, tapes and finishes drywall ready for paint. Outlet boxes are brought flush to the new face. Priced per room or per project, quoted from your photos within one business day, Twin Cities metro.

  • Priced per room or per project
  • Paneling off, wall checked, drywall on
  • Insulation added to code where missing
  • Quote from photos in 1 business day
  • Licensed MN contractor BC809005
Finished interior room with painted drywall walls and white trim

A lot of Twin Cities basements were finished in the 1970s and 1980s with thin wood paneling nailed straight to 1x2 or 1x3 furring strips on the concrete block. Often there is no insulation behind it, or a thin sheet of foam, and sometimes the bottom of the furring has been wet. Painting the paneling is one option. Taking it off and hanging drywall is the other, and it is the only way to see what the wall looks like.

Once the paneling is off, the wall tells us what it needs. Dry block and straight furring can take insulation and drywall with little else. Stained block or soft furring at the floor means the water question gets answered first, before anything new goes on the wall. Wavy furring gets shimmed or replaced so the drywall is flat. Where the wall has no insulation, it gets insulated to code before the drywall goes up.

Drywall straight over the paneling is possible on a flat, dry wall, and it saves the tear-off. In a basement we usually advise against it: it buries whatever is behind the paneling, it thickens the wall at every door and window, and every outlet box has to come out further. We tell you which way we would go after seeing the photos.

What you supply

  • Photos of each wall, the floor where the paneling meets it, and any water marks
  • Walls cleared of furniture and shelving, or tell us and we move it
  • Your decision on painting: we paint as a separate line, or you paint
  • Your choice of base and casing if the trim is being replaced too

What JMB supplies

  • Paneling, old trim and furring removed and hauled away
  • A look at the block wall and furring for moisture, with photos
  • Furring shimmed, replaced or a stud wall framed where it is needed
  • Rigid foam or other insulation to code on walls that have none
  • Drywall hung, taped and finished smooth, primed for paint
  • Outlet and switch boxes brought flush to the new wall; any wiring changes by a licensed electrician
  • Photos of the wall before it is closed up, in your job folder
  • New base and casing when you want it, and painting quoted as its own line

How it is priced: per room

Quoted in writing from your photos within one business day. What moves the number:

  • Square footage of wall and how many openings and corners it has
  • What is behind the paneling: straight furring on dry block, or wet or wavy furring
  • Whether insulation has to be added before the drywall
  • Framing a new stud wall vs. reusing the furring
  • Soffits, windows and bulkheads that need wrapping
  • New base and casing after, and painting quoted as its own line

The first price is from photos; once the paneling is off, anything unexpected behind it is shown to you and quoted before we go on.

How long it takes

One family room: a day to tear off and prep, a day to insulate and hang, then two to three short visits to tape, finish and prime.

How your project works

  1. 1

    Send photos, get a written quote

    Send three photos of the space and a sentence about what you want. You get a clear, itemized quote within one business day. We only come out to measure first when the job needs a tape measure — no pressure, no games.

  2. 2

    Pick materials, or bring your own

    We help you choose profiles and materials that fit the house and the budget, or match your existing millwork exactly — or you buy the door or trim yourself and we install it. Everything is confirmed before the crew is scheduled.

  3. 3

    Clean, precise installation

    The crew shows up on time, protects floors and furniture, and installs with tight joints and consistent reveals. Photos of the finished work go in your job folder.

  4. 4

    Walkthrough and invoice

    We walk the finished work with you. If anything is not right, we fix it before we call the job done. Then one invoice, paid by check or direct deposit — no card fees, no payment links.

Situations and options

Tear off and drywall

Paneling and furring off, the wall checked, insulated to code, then drywall hung and finished. The way to know what is behind the wall and end up with a flat one.

Drywall over the paneling

On a flat, dry wall with no questions about what is behind it, thin drywall can go straight over the paneling. Faster, but the wall gets thicker at doors, windows and outlets, and we say so up front.

Paint the paneling instead

If the paneling is solid and the grooves do not bother you, priming and painting it is less work than drywall. See our painting wood paneling page.

Remove Wood Paneling and Drywall a Basement — Paneling Out, Walls New: questions, answered

Can you put drywall over wood paneling in a basement?

It can be done on a flat, dry wall, and it saves the tear-off. In a basement we usually take the paneling off instead, because it hides the block wall and furring behind it, and that is where water and missing insulation show up. Hanging over it also makes the wall thicker at every door, window and outlet. We look at the photos and tell you which makes sense.

What is usually behind old basement paneling?

Most often furring strips nailed or glued to the concrete block, with nothing between them or a thin sheet of foam. Sometimes there is a vapor barrier, sometimes a stained or damp spot at the bottom of the wall. Once in a while there is a stud wall with insulation. We photograph it when the paneling comes off so you see it too.

Does the basement wall need insulation before drywall?

If there is none, it gets insulated to code before new drywall goes on, and on a finished basement the inspector will look for it when a permit is involved. The usual choice on block is rigid foam, sealed at the seams, with the drywall on furring or a stud wall in front. JMB pulls the permit when the job needs one.

What if there is water damage behind the paneling?

We stop and show you before anything new goes up. Soft furring or stains at the bottom usually mean water came in at some point, and the drywall should not go on until the source is known and dealt with. Drainage outside, a crack in the block or a plumbing leak each has its own fix.

Do you replace the trim when the paneling comes off?

Usually, because the old trim was fit to the paneling and will not sit right on drywall. New base and casing is quoted with the job in a profile you pick, installed primed, filled and caulked. Painting is quoted as a separate line, or leave it primed and caulked and paint it yourself.

Is it better to paint the paneling or replace it with drywall?

Paint it if the paneling is solid, the wall behind it is dry and you are fine with the grooves or filling them. Replace it with drywall if you want a flat wall, want to see and insulate the wall behind it, or the paneling is warped or damaged. Drywall costs more and takes longer but gives you a new wall.

Recent JMB work, from our job log

59 installs recorded across 30 Twin Cities communities since Dec 2025. Window and door installs for homeowners and for the builders and dealers we sub for. Counts come straight from our job log; no customer names.

Get a written quote for this job

Three photos and a sentence is enough. You hear back within one business day. Or text the photos to 763-204-2099.

Free quote from your photos in one business day · No obligation · Licensed contractor

Photos (up to 3 — the fastest way to a price)

One wide shot of the room or wall, one close-up of the trim or opening, one of anything you're unsure about.

Related jobs we do

Page reviewed September 26, 2026 · JMB Builders LLC, MN license BC809005 · All drywall pages

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Based in Zimmerman, scheduling across the Twin Cities metro. Closest first: