Does an outdoor kitchen really add value to your home? In this post, I’ll explore its potential ROI, discuss how it affects the value of your home, and share a detailed budget breakdown of our own renovation.
A few weeks ago, I revealed our new outdoor kitchen on our patio. To say we’re thrilled with our outdoor space would be an understatement. We’re out here every single day, hosting parties and informal gatherings just about every weekend.
Plus, my experience with RTA Outdoor Living was incredible. It’s crazy to think that our entire kitchen renovation took only four weeks from start to finish!
It’s truly become the perfect place for entertaining, and it’s improved our quality of life. Plus, we’ve become the go-to house for neighborhood get-togethers! Our outdoor kitchen has made our backyard the fun place to be on the block! Heck yeah.
While this functional outdoor kitchen has undoubtedly enhanced our outdoor living experience, we were also curious about how it might impact the home value.
In today’s post, I hope to answer a few key questions:
- Does an outdoor kitchen increase your home value?
- If so, what’s the return on investment (ROI)?
- How much did our outdoor kitchen renovation cost? Yes, I have a full budget breakdown of our entire process below.
But before we get to the details, let’s first look at the bigger picture of our home renovation journey over the past five years.
Buying Our Home In 2019
When we bought our house in the spring of 2019, we got it for a great price, under our budget, fully knowing that we were going to invest a lot into making it our own. It was an old, outdated house in a really nice neighborhood in Chicago, where homes typically sell for two to three times our home price.
Because of that, we felt confident in taking on multiple home improvement projects to renovate the house from top to bottom. We planned to live in it, enjoy it, and eventually sell it within five years for a much higher price tag—likely increasing the property value significantly.
Fast forward to today and we’ve fallen in love with our community. What was once a “five-year plan” has now turned into a “why would we ever want to leave?” question.
We’ve renovated every space, adding custom touches that reflect our family’s style, and our latest project—the outdoor kitchen installation—has been a game changer for us, particularly for hosting in the warmer months.
Home Renovation Projects – Budget Breakdowns
Budgeting and finances are very personal topics. However, I know that numbers can be extremely helpful when planning your own home design and outdoor kitchen projects. That’s why I always share REAL numbers—to help you plan accordingly.
Here are budget breakdowns from our large home renovations:
Our Outdoor Kitchen Renovation – Budget
Our most recent upgrade has been the addition of a beautiful outdoor kitchen, which has truly become an extension of our home. When designing it, we wanted a space that could handle all of our food preparation needs and serve as a great spot for hosting friends and family.
We included key features like a built-in grill, ample storage space, and two outdoor refrigerators to make it both functional and versatile.
Below is the full budget breakdown of our outdoor kitchen cost. In the spirit of full transparency, I partnered with RTA Outdoor Living for this project to showcase their products. Because of that, they provided all the materials, while I covered the labor, installation, and the new pavers.
- Cabinetry: $22,987
- Appliances (grill, two refrigerators, double burner): $8,696
- Outdoor Storage Cabinets (dry pantry, 2-drawer cabinet, trash can, access doors, drop-in cooler): $4,035
- Countertops: $3,275
- Shipping: $1,500
- New Pavers: $1,200
- Labor (demo, natural gas and electrical, and paver installation): $9,000
- Kitchen Installation & Electrical Hookup: $8,000
Total = $58,693
I understand these numbers may seem high, and I want to emphasize that the costs can vary greatly, depending on the size of your space, your location, and the specific choices you make. For example, we opted for high-end outdoor appliances and we live in an area where labor tends to be more expensive.
The good news is that you don’t need to spend anywhere near this amount to create a functional and beautiful outdoor kitchen. Even a basic outdoor kitchen with a few well-chosen elements can provide a great ROI and elevate your outdoor living experience. Plus, there are many aspects of the labor that you can do yourself to save money.
Is It Worth It? How an Outdoor Kitchen Impacts Your Home’s Value
Now that you have a sense of what an outdoor kitchen project can cost, you might be wondering, “Is it worth the investment?” The short answer is “Yes”, but as with any home improvement project, the value it adds depends on several factors.
In general, real estate experts agree that adding outdoor living spaces—especially a well-designed outdoor kitchen—can increase the property value of your home.
According to the National Association of Realtors, outdoor kitchens are becoming a popular trend, particularly in warmer climates. In these areas, homebuyers see outdoor kitchens as a valuable extension of the home, making it an attractive feature for potential buyers.
In cold climates (ahem, Chicago!), an outdoor kitchen might not get as much use. But, if it is designed to withstand the elements – with durable materials and stainless steel appliances, like ours – it can still provide a significant boost to resale value.
Chicago weather is pretty great from April through October, so we will be out here as much as possible.
A well-thought-out outdoor kitchen installation can not only enhance your quality of life, but it can also deliver a higher ROI if you decide to sell your home. While the exact added value depends on many factors, some studies (like this one) suggest that homeowners can see anywhere from a 55% to 150% ROI on their outdoor kitchen investment.
We don’t plan to sell our home anytime soon, and it’s possible that we won’t see the full return on our investment, but it’s nice to know that it should improve our home value in some way!
Final Thoughts: Is An Outdoor Kitchen Right For You?
An outdoor kitchen can be a fantastic addition to your home, with both lifestyle benefits and the potential to boost your home’s resale value. This project is about creating a space that extends your living area into the great outdoors!
Even a more modest backyard BBQ kitchen can offer significant value while adding charm and curb appeal that attracts prospective buyers.
We are thrilled with our new space and hope to use it for many more years! Now, who’s coming over for a backyard BBQ? We are ready to host!