Does An Outdoor Living Space Add Value to My Home? - Standard Companies (2024)

Home / Does An Outdoor Living Space Add Value to My Home?

Does An Outdoor Living Space Add Value to My Home? - Standard Companies (1)

Outdoor spaces like patios, decks, and even outdoor kitchens are popular renovations for many homeowners. But, if you’re considering building one for your own home, you may be wondering if the investment is worth it in the long run.

Can an outdoor addition increase your home’s value? Here’s what you need to know.

The Short Answer: Yes!

But it’s a bit more complicated than that.

In order to ensure you’re getting the maximum resale value out of your outdoor additions, you should choose the most desirable type of outdoor space and use the highest-quality building materials that are still cost-effective. Read on for a more detailed explanation of which outdoor living spaces are most valuable and how to build them in a way that maximizes your return on investment.

5 Outdoor Living Space Additions That Add Value to Your Home

From pergolas to swimming pools, there are many outdoor living space additions that can bring enjoyment and add value to your home. But which ones are the most cost-effective? Let’s take a look:

Patios

Patios are valuable outdoor additions because they provide a space for outdoor entertainment. They can be furnished with decorative lighting and outdoor furniture, making them customizable to fit any family’s style preferences.

If you build a patio from scratch, you could see an average ROI of over 100%. However, if you choose to update (refinish or repair) an existing patio, you’re looking at much less of an investment, which can boost your ROI closer to 500%.

One thing to keep in mind: don’t make your patio so large that it takes up too much yard space. Homebuyers usually value some green in their backyard too.

Outdoor Kitchens

Outdoor kitchens have recently gained a ton of popularity. Although they may seem like a huge project — practically adding an entire new room to your home — they’re definitely worth the investment in terms of both personal enjoyment and resale value. When built properly and with good design, outdoor kitchens have an ROI between 100-200%.

The most important thing to remember is that if you can live without a very specific kitchen item, don’t put it there. For you, a large stone pizza oven may be great, but some potential buyers won’t use it enough to see its value. Sticking to the basics (grill, sink, fridge) makes for a much better investment.

Decks

Decks are a staple to any backyard. That being said, the ROI for decking varies a lot depending on which materials you use. Pressure-treated lumber and TimberTech composite decking are both weatherproofed and durable, so they’re usually the options that will add the most value.

Your estimated ROI will also depend on whether you’re building the deck from scratch or updating an existing one. A brand new deck will cost more, but still give you around an 80% ROI. An updated one will cost less, giving you an ROI up to 400%, depending on the materials used.

Similar to patios, make sure your deck doesn’t take up too much yard space, as that could reduce your potential ROI.

Fire Pits

A lot of homeowners have a basic outdoor fire pit, but upgrading yours to a more sturdy and beautifully designed one is worth the cost. It can return between 80-100% of your investment, depending on whether you use brick, stone, or concrete.

We recommend placing a fire pit in a hazard-free location, away from any buildings and especially windy spots. Also, connecting your fire pit to natural gas is a way to add some extra value.

Pergolas

A pergola or extended roof overhang is a great addition, especially if you already have a patio or deck to put it over. It can provide some shade for when you want to entertain on especially hot summer days.

By building a pergola by yourself, you’ll see around a 50% ROI. However, you can boost that percentage by cutting down on installation costs and purchasing a prefabricated one.

A word of caution: installing a pergola that doesn’t match the style of your home and/or isn’t compliant with any building codes and regulations could actually decrease the value of your home. Be sure to design your addition thoughtfully in order to get maximum enjoyment and cash from it.

Planning a new deck, patio, or outdoor kitchen? Standard Companies is your one-stop local resource for all the materials and supplies you need. With decking materials from top brands like Trex and Timbertech to durable outdoor kitchen countertop options, contact our team for all the materials and the expertise you need to complete that outdoor project.

Does An Outdoor Living Space Add Value to My Home? - Standard Companies (2024)

FAQs

Does An Outdoor Living Space Add Value to My Home? - Standard Companies? ›

Outdoor living spaces enable people to go outside without actually leaving their properties. As a result of this demand, homebuyers are willing to pay extra for properties that have functional and attractive outdoor living spaces. Thus, updating your deck, patio, or backyard can increase your property's resell value.

How much value does an outdoor living space add? ›

That said, it's estimated that well-designed patios not only add 8-10% home value, but also earn an ROI of over 80%. A better option for most homeowners, however, would be to refinish or repair an existing patio, as repair estimates average around $1,400. This can provide an ROI of nearly 500%.

What adds the most value to a backyard? ›

5 backyard improvements that add value to a home
  1. Patios. There's no better way to define an outdoor space than to install a patio. ...
  2. Decks. Consider adding or replacing a deck to expand your usable outdoor space and boost your backyard's value. ...
  3. Outdoor kitchens. ...
  4. Privacy fences. ...
  5. Low-maintenance irrigation.
May 8, 2024

Is a deck or patio better for resale? ›

Patios are easier to maintain and cost less to build. However, decks offer more customizations and resale value, so many homeowners find them worth the extra cost and trouble.

Does adding a deck and patio increase home value? ›

Nationally, a new deck provides a 44% return on investment (ROI) in added property value. So if you invest $20,000 in a new deck, your property value may increase by $8,800 — 44% of $20,000.

How to increase home value by $50,000? ›

Adding $50K in Value to Your Home: Top Strategies for Sellers
  1. Curb Appeal Matters. First impressions count. ...
  2. Upgrade the Kitchen. The kitchen is often the heart of the home. ...
  3. Bathroom Remodel. Bathrooms also hold great value. ...
  4. Energy Efficiency Improvements. ...
  5. Fresh Paint and Flooring. ...
  6. Professional Staging. ...
  7. Proper Pricing Strategy.
Aug 28, 2023

Do pavers add value to your home? ›

In a Fall 2021 HomeLight survey, agents reported that “outdoor space was the third-most-prioritized feature for homebuyers. In general, pavers can bring a return on investment of 109%, or a $3,563 increase in value.”

Does backyard landscaping increase property value? ›

Improving your home's landscape from average to excellent yields an increase in home value of 10-12%, according to robust studies using actual home sales. The impact of better landscaping rises as lot size increases from under a quarter acre to over an acre, according to a Clemson study.

Does a nice backyard add value to your home? ›

A well-designed and properly maintained outdoor space can enhance the overall appeal of your property and attract potential buyers. Not to mention, in the meantime, you get to enjoy your refreshed outdoor area in the warmer months ahead!

What type of landscaping adds value? ›

A well-maintained lawn

It's a no-brainer: quick, relatively inexpensive, and returns the most on your investment. Lawns remain a favorite of homebuyers. According to real estate agents, a well-kept expanse of grass pleases buyers.

What adds the most value to a home? ›

Projects That Boost Your Home's Value
  • Remodel the kitchen. Updates to the kitchen pay off. ...
  • Upgrade the appliances. ...
  • Boost the bathrooms. ...
  • Remodel the attic or basem*nt. ...
  • Get decked out. ...
  • Boost curb appeal. ...
  • Improve energy efficiency.

Is it cheaper to pour concrete or build a deck? ›

It's cheaper to build a concrete patio in terms of both the initial cost to lay a concrete patio, as well as its cost of maintenance over time. A concrete patio costs only $4 per square foot, while a deck costs roughly $6 per square foot for lower-cost pressure treated lumber.

Does a deck add to your taxes? ›

A well-made deck will undoubtedly add to the value of your home. This in turn could raise the taxable value leading to slightly higher property taxes. As mentioned above, property taxes get deducted from the overall amount that you owe the IRS. These are just the basics for how your home factors into your taxes.

Do appraisers look at decks? ›

Appraisers don't just evaluate the interior of your home — they also take desirable exterior features like garages, sheds, porches, and decks into account. The appraiser will take note of the landscaping as well because it's the first thing buyers see when they pull up to your house.

What is the ROI on adding a deck to a house? ›

Deck ROI Facts

Build a deck! According to Remodeling Magazine's Cost vs. Value Report, you can get back as much as 80% of the cost of a deck back when you sell your home. The average ROI of a deck is 60%-70%, however there are many factors that can affect these numbers.

Do fire pits add value to a home? ›

Patio extension ideas like fire pits are a great way to add value to your home. So, can adding a fire pit increase your home's value? Yes, a fire pit is an excellent addition to any backyard because it adds value to your home. Also, it creates a beautiful and functional area of your home.

How much does a porch increase home value? ›

As a homeowner, if you intend to sell your home in the future, you naturally hope to recoup the money you spent to add a porch. Some sources say the average return on investment for a porch addition is around 84%. With this in mind, market conditions for real estate place a huge role in determining that number.

How much does adding a deck increase home value? ›

For example, if you can add a deck for $10,000, then on average, it will increase your home value by approximately $7,600—76% of the total. Of course, the true value varies depending on where you live. But a deck in a warm-weather climate is almost always a good idea.

Does enclosing a porch add value to a home? ›

While a patio enclosure may not add square footage to your home from an official perspective, it can still add livable space for you to enjoy the way you see fit while also increasing the value of your home.

How much value does a pergola add to a home? ›

While there are many caveats, in short, the answer is yes. A pergola has the potential to add value to your home, with many estimates putting the return on investment at somewhere around 50% to 80%. That makes pergolas one of the more valuable additions homeowners can put on their homes.

References

Top Articles
Latest Posts
Article information

Author: Carlyn Walter

Last Updated:

Views: 6278

Rating: 5 / 5 (70 voted)

Reviews: 85% of readers found this page helpful

Author information

Name: Carlyn Walter

Birthday: 1996-01-03

Address: Suite 452 40815 Denyse Extensions, Sengermouth, OR 42374

Phone: +8501809515404

Job: Manufacturing Technician

Hobby: Table tennis, Archery, Vacation, Metal detecting, Yo-yoing, Crocheting, Creative writing

Introduction: My name is Carlyn Walter, I am a lively, glamorous, healthy, clean, powerful, calm, combative person who loves writing and wants to share my knowledge and understanding with you.