What is one requirement for an area to be included in living space calculations?

For an area to be included in living space calculations, it must be above grade. This means that the space should be located at or above the level of the ground outside, which is important because areas below grade—such as basements—are typically not considered as livable space in real estate valuations. Living space is generally defined as areas that are suitable for permanent habitation, and being above grade is a fundamental criterion that influences the ambiance, accessibility, and overall desirability of the space. Thus, living spaces that are entirely above grade are usually considered more valuable and functional.