Do Outdoor Living Spaces Add Value to Your Home?

February 19, 2024
do outdoor living spaces add value to your home

Since the pandemic, outdoor living spaces have become an amenity high on the list of many homebuyers. It allows you to enjoy a slice of the outdoors within the comfort and safety of your home. 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.

But how much does an outdoor living space add to home value? This post will try to answer this question by looking at the different types of outdoor living spaces and what they bring to the table.

Common Updates to Outdoor Living Spaces

1. Adding Function to a Yard

Both the front and backyard make up the major outdoor living space of a home. Your yard should be more than a plot of land between your home and its property limits. A functional yard means a space outside your home that lets you do activities such as entertaining, playing, or exercising. It can even be a space for hobbies such as gardening or arts and crafts. Adding function to a yard can be as simple and inexpensive as setting up a garden table and chairs. It can also be as complex and costly as building a swimming pool, gym, or studio.

2. Landscaping

Landscaping involves creating a visibly pleasing home surrounding with the use of trees, plants, and other features such as fences and paths. Modifying the landscape of your home allows you to create areas with varying themes intended for different outdoor activities. A simple landscaping update like reseeding a patchy lawn or rehabilitating unhealthy plants can increase the home’s appeal to buyers.

3. Clean-up and Maintenance

Homes with outdoor living spaces that are clean and well-maintained benefit the health and safety of their inhabitants. These homes have high value because homebuyers are willing to pay a premium for properties that do not appear neglected and unsafe. Examples of outdoor clean-up include pressure-washing driveways, cleaning roofs and gutters, or decluttering the lawn. Maintenance includes repairing the exterior of the home such as filling cracks, replacing missing shingles, and repainting or restaining.

4. Building Additional Living Space

One of the major updates to a home can be building additional living space that provides extra space with outdoor access. This type of living space can be attached to the home, like a deck or porch, or separate, like a shed or cottage house. A deck or a porch can serve as an outdoor kitchen, living, or dining area. A shed or cottage, on the other hand, can be an office, studio, or store room. These additional structures add to a home’s usable floorplan, thus increasing its value. The additional living spaces you build can depend on your purpose, climate and weather patterns, and existing home structures.

5. Refreshing Doors and Windows

Doors and windows are also essential parts of a home’s outdoor living space. A well-designed and maintained door or window can make a big difference to a home’s perceived value. You can refresh doors by painting, replacing the tarnished or outdated handles, and redesigning the knockers, numbers, and other accessories. Similarly, you can refresh windows with a fresh coat of paint, and by replacing cracked or foggy glass and updating accessories. As you create your outdoor living space, you may even want to upgrade your doors and windows to better integrate your indoor and outdoor living spaces. Some popular options include folding or sliding glass door systems or a pass-through kitchen window connected to your outdoor kitchen or bar.

How Much Can Outdoor Living Spaces Add to Home Value?

The added value that the above updates can bring to your home will depend on the type of update and the quality of the work. It can also depend on the current demands of homebuyers within your area. For example, simply adding tables and chairs in your yard will not add as much resell value as building a patio, an in-demand outdoor space. Below are some examples to help you gauge the added home value of an updated outdoor living space:

Patio or Deck

A premium patio costing around $5,000 can increase the resell value of a home by up to 10%, earning a return on investment of at least 80%. Simply adding outdoor furniture cannot significantly increase a home’s resell value unless these pieces are custom-fitted or unique to the house and convey with purchase. Renovating an existing patio, on the other hand, can come at a lower cost of less than $2,000 while increasing a home’s value similar to building a patio from scratch. Thus, patio renovations and remodeling can result in higher ROIs of up to 500%.

Wooden decks tend to be more expensive and have a lower ROI percentage. Homeowners spend $16,000 to $20,000 on average and experience a 66% return. This number can vary drastically depending on the current lumber rates, as the lumber industry experienced a drop in supply and a spike in costs after the pandemic. Similar to patio renovation, if you can restore an existing deck, you have a much lower upfront cost and higher ROI.

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When it comes to landscaping, professional services can cost from $3,000 to $10,000 with annual upkeep of up to $3,000. The American Society of Landscape Architects (ASLA) estimates that at these costs, landscaping can add 15-20% to the home value. Some experts say professional landscaping can easily add $10,000 to a home’s listing price. Again, this added value depends on the type of landscaping and the quality of the work done. Homebuyers look for quality landscaping with irrigation and mature trees and plants as a value-add. This is one of the major selling points of buying an existing home instead of a new build, as new builds generally don’t have any landscaping.

Outdoor Kitchen

Outdoor kitchens are currently one of the on-trend and in-demand outdoor living spaces. You can build a functional and high-quality outdoor kitchen with an investment of around $20,000. Expect your home value to increase by more or less the same amount. Experts report an ROI for outdoor kitchens to be at 100-200%. Although higher returns are expected for homes located in areas with warmer climates, outdoor kitchens with cold-adaptive features are also profitable in colder areas. For example, outdoor kitchens in Washington should be in a covered space to provide shelter from the rain.

Additionally, it is crucial to consider that the must-haves for your outdoor kitchen might not be the same for every homebuyer. For instance, splurging on an outdoor pizza oven may be your dream, but a buyer who doesn’t see themselves using it won’t see the value.

Irrigation System

An effective irrigation system is critical for a beautiful landscape, optimized water use, and proper drainage. Homebuyers will pay more for a home that already has a system that takes care of the lawn and keeps plants green with minimal maintenance. You can spend up to $4,000 for a high-quality irrigation system with a potential ROI on the home resale value of 85-90%.

Fire Pit

A fire pit is an in-demand feature for your outdoor living space, especially here in the Pacific Northwest. As with all of the updates here, the value added depends on the design, materials, and quality of work. It also depends on the fuel of choice, such as incorporating propane or natural gas lines into the fire pit. On average, you can expect a 78% return on investment for a well-built fire pit.

Consult a Professional Outdoor Living Spaces Designer

In addition, at Puget Construction and Landscape, we offer comprehensive design-to-build services, ensuring that every aspect of your outdoor living space is meticulously planned and executed. Our team specializes in carefully crafting your project to meet your needs by honing in on your desires paired with our expertise. From the initial concept to the final touches, we work closely with you to bring your vision to life, ensuring that every detail is thoughtfully considered and flawlessly implemented. With our expertise and dedication to excellence, you can trust us to transform your outdoor living space into a haven that not only enhances your lifestyle but also adds significant value to your home.

Whether transforming your landscape, building additional living space, optimizing your irrigation, or remodeling your existing structure, you can count on us to provide the quality design and build that will meet your needs and achieve your financial goals. Boosting home value through outdoor living space updates can be a complex process. For an expert professional’s perspective, reach out to Puget Construction and Landscape today!

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