What Backyard Improvements Yield the Best ROI?

Landscaping and backyard improvements can be expensive, so it's worth considering the impact of your project on your home's resale value. However, your landscaping return on investment isn't the only factor to consider. If an upgrade brings you joy and makes your yard a more pleasant place to hang out, it could be worth it regardless of the ROI.

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Understanding how upgrades to your outdoor living space affect your home's value can be confusing. Various factors can affect your return, including whether you hire a professional and the tastes of potential buyers. Still, knowing the average ROI on landscaping projects can help determine which upgrades will likely add value.

The National Association of REALTORS Research Group analyzes the ROI of various landscaping projects and yard upgrades. It also surveys homeowners to assess how much enjoyment each upgrade provides, assigning each project a joy score out of ten.

The 2023 NAR study results show that you don't have to spend a fortune to achieve a decent ROI — even keeping your yard well-maintained can boost your home's value. Let's explore the top five projects in terms of landscaping ROI.

1. Lawn Care

Perhaps surprisingly, hiring a company to carry out standard lawn care services offers the best return on a landscaping investment of any outdoor improvement by a significant margin. Applying fertilizer and removing weeds from your lawn can dramatically improve its appearance, boosting your backyard's appeal when it's time to sell. Of the consumers canvassed by the NAR report, 58% said a well-manicured lawn made them want to spend more time at home.

If you hire a pro, this landscape upgrade typically costs around $415 (CAD 556) for a 5,000-square-foot lawn. If you sell your house, you can expect a landscaping ROI of roughly $900 (CAD 1,205) — an impressive 217% of your outlay.

2. Landscape Maintenance

Professional landscape maintenance often pays for itself upon resale, with an average ROI of 104%. However, you'll need to commit to annual mulching, mowing and shrub pruning to achieve this type of return.

The homeowners surveyed also planted 60 new perennial or annual plants per year on average. Landscaping maintenance professionals generally charge around $4,800 (CAD 6,428) per year for these services, yielding an estimated return of roughly $5,000 (CAD 6,695).

3. Outdoor Kitchen

Installing an outdoor kitchen is a major project, costing most homeowners around $15,000 (CAD 20,086) on average. Unlike lawn care and landscape maintenance, you're unlikely to make much of a profit on this project when you sell your home. However, you may get back what you put in — the average ROI of a backyard kitchen is roughly 100%.

Remember that your ROI depends on the size and quality of the installation and the demand for backyard kitchens in your region. According to the NAR report, a typical project includes an inset grill, a sink, an ice chest and around 60 square feet of granite work surfaces.

On the other hand, even a basic outdoor kitchen could be a worthwhile investment. This project scores especially highly for consumer satisfaction, with 71% of people saying it made their home a more enjoyable place to live.

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4. Overall Landscape Upgrade

A complete landscaping overhaul costs homeowners around $9,000 (CAD 12,052) on average, including professional services. This figure covers installing a 30-foot flagstone walkway and two large stone planters. It also includes the price of flowering shrubs, planting a tree and installing landscaping bark. You could pay significantly less than average for more modest yard upgrades, while more elaborate estate landscaping ideas could cost much more.

The ROI for landscaping upgrades depends on the scope and quality of the work. Generally, a landscaping project similar to the upgrade described above could yield an ROI as high as 100%. This backyard improvement ranks highly for consumer satisfaction, with around 76% of homeowners reporting a significant feeling of accomplishment.

5. Patio Upgrade

Installing a new patio typically adds slightly less to your home's value than the installation cost, yielding an average ROI of 95%. However, it could significantly boost your yard's functionality and appearance. Around 85% of homeowners say their patio upgrade made them want to spend more time in their yard and felt it made their space more pleasant.

It costs around $10,500 (CAD 14,060) to install a new 18-foot-by-16-foot concrete paver patio, or between $7 and $10 (CAD 9 and CAD 13) per square foot for materials. This investment could increase your home's resale value by roughly $10,000 (CAD 13,391).

All CAD conversions are based on the exchange rate on the date of publication.