Inside for sure. I've had ours in the garage for three years, and for all the reasons skmom stated, I am hugely excited to be getting these things indoors when we move. Even being on a different floor would not be an issue. Be great to be able to chuck a load in at 10pm without trekking outdoors in the dark.

Inside laundry has way more value.

Ok..you both confirm my initial thoughts. It is annoying walking down the steps into the garage and needing to go out there when the alarm is already on, etc etc. Plus, we are getting rid of the tub since we have 2 upstairs so we'll have room to make it more of powder/laundry room. Now I just need to find a deisgner to help me plan it all out! Any recommendations for someone on a budget let me know. :)

Our house is in North Alabama, but is copied from the ranchers in South California. (Built in 1965) The garage floor doesn't bother me at all (I have a rug in front of the set) and don't usually drop anything. What bothers me is the heat in the summer and the cold in the winter. You don't have either of those problems in your area.

I would prefer a full size set to a smaller one. Get what you like best. If you go for resale, 50% will want inside even if a smaller set, and 50% will want the full size set in the garage!

ETA: Here, inside would over rule anything else.

Definitely inside. We just built a home in northern California and one of the top items on our must-have's was indoor laundry. After 20 years of doing laundry in the garage, this is such a big improvement! Our garages (2 homes) were not insulated so they were either too hot, too cold and never a place I wanted to spend time in. Garage floors are inherently dirty so it always bothered me when laundry accidentally dropped on the floor. Plus, usually there is no place to sort or fold clothes.

Definitely inside. I can't even imagine having it in a garage. But I live in Montana so they are never in a garage because of our winter weather. Mine are in the hall from the garage in My current home. I really even hate that location because of it being the entrance into the house We use 90% of the time. I feel even that is a dirty location and I'm always in the way when doing laundry. I would never put it in a hallway. making room in the bathroom is a great idea. Close to bedrooms is even better. It can still look nice though. This picture is taken just inside the garage door.

Weather is a large factor regards to placing laundry equipment in a
garage or porch vs. inside the environmentally-controlled area of the
home. High humidity accelerates deterioration of the machines. Seasonal extremes of hot and cold temperatures affect dryer
operation. Thermostatic auto-dry in particular is thrown askew by
ambient temperature variations, and may not work at all below 50°F.
True moisture-sensing auto-dry works OK at low ambient temperatures.

“If you go for resale, 50% will want inside even if a smaller set, and 50% will want the full size set in the garage!”

I’m going to have to (respectfully, of course!) disagree with those numbers, Sherry; I’d say the vast majority of homebuyers want their laundry facilities inside, and would walk away from a house that didn’t offer that. I know I would!

In Hawaii, the washer/dryer is often outside. Absolutely YES to an indoor laundry room.

I must be the odd one out. We live in northern California. There are no seasons. I prefer the laundry in the garage. It's always noisy and a little funny smelling from the heat and moisture during washing/drying. I much prefer keeping that in the garage. The garage, by and large, is clean'ish and basically the same temperature as the rest of the house. Nothing wrong with putting those bulky appliances there.

Now what I would really like to have would be a laundry chute from the bedrooms to the garage. But alas, that's unlikely you be retrofitted.

Inside, no question

Since you are asking about resale, have you considering asking your realtor? Even if it’s been awhile since you bought your house, they might be happy to share their opinion.

FWIW, I recently went thought this debate. Overwhelming I was getting urged to put it in the garage. One neighbor had 4 kids and when they bought their house the W/D was in/near the kitchen (and they were doing a lot of laundry, so nonstop noise) so they moved it downstairs into the garage. I’m keeping mine inside.

Did I misread? Do you intend to remove a first floor bathroom and turn that space into a laundry room? If so, then NO! You need a bathroom for guests in the main living area of the house. Can you make a pass-thru walkway into the garage? Then add a laundry area within the garage. Prospective buyers will think of visiting aged parents with limited mobility needing a bathroom downstairs. Make the garage laundry as cute as possible.

Consider air conditioning impacts too. A clothes dryer blows a lot of air outside that you've already paid to cool down.

It has always seemed to me that if possible it is best to locate the washer and dryer as close to the rooms that generate the most laundry, that is, the bedrooms (and closets) and bathrooms. It makes for much less work to wash, dry and return clean laundry to their places when you are done if you don't have to make long treks, especially if stairs are involved.

A 2nd story laundry seemed fantastic, until we had a 2nd story laundry room flood, It was raining from the kitchen ceiling lights and pooling on the first story hardwood floor, which had to be replaced. The technician did not install the drain hose properly. The washer danced away from the wall and drained a full load of water onto the floor that ran down to the ceiling below Also, it was a huge pain when a laundry load shifts and becomes off-balance (bang bang bang!)

Rushing upstairs to correct the spin cycles was not fun.

If you install on the 2nd floor (and honestly, even if you install on the ground floor), you should always place the washer on a drain pan. In case of leaks, the water should safely run into a utility sink, to the outside, or if possible, into the the sewer. The latter is a little more challenging to plumb, as you don't want sewer gases to vent back into the house; and a pipe that is only used in emergencies doesn't really work with a liquid-filled p-trap.

Agree with having a drain pain under wherever. You can save on space by installing stacking washer/dryer and accomplish the fact of having it indoors - BOOST that resale value for sure.