A deck is a great addition to any home, offering a practical and aesthetic upgrade. For many homeowners, building a deck is about creating more outdoor space and increasing the value of their property.
This article will assess the various factors contributing to the ROI of building a deck and offer insights into the materials and considerations necessary for a successful project.
Let’s get straight to the point.
Adding a deck to your home can significantly increase its value, with potential ROI ranging from 65% to 106%. Decks provide cost-effective outdoor living space, enhance aesthetics, and appeal to buyers, especially in warmer climates.
Material choice, labour costs, and regional factors impact the return on investment. Wood decks offer a better ROI, while composite decks require less maintenance. Focus on quality construction, functionality, and low-maintenance features to maximise value. A well-planned deck can recoup its cost and boost home resale value.
The Value Of Deck Improvements: Enhancing Home Appeal And Marketability
Adding a deck to your home is one of the most valuable and cost-effective improvements. A well-planned deck expands living space and enhances aesthetic appeal, making it an attractive feature for potential buyers. Here are the key reasons why a deck is a smart investment that can significantly boost your home’s value:
1. Cost-Effective Space Expansion
A deck provides an affordable way to increase your home’s functional living space without the expense of a full indoor remodel. This additional outdoor area is versatile and can serve as a gathering spot, dining area, or relaxation zone, especially during warmer months, enhancing your home’s appeal and livability.
2. High Return on Investment (ROI)
Decks offer a high return on investment, with average ROIs ranging from 65% to 106%, depending on material, size, and location. In many cases, the cost of building a deck can be recouped in added home value when it’s time to sell, making it a financially sound improvement.
3. Enhanced Buyer Appeal
Outdoor spaces are increasingly important to homebuyers, particularly in regions where outdoor living is a lifestyle priority. A deck provides a desirable outdoor living space, making your home more appealing in a competitive real estate market. Buyers often see decks as a valuable bonus that adds comfort and convenience.
4. Versatile and Customisable Design
Decks can be tailored to meet specific needs and styles, whether you prefer a cozy, intimate area or a spacious deck for entertaining. This flexibility in design caters to your lifestyle and adds significant value for future buyers who appreciate a thoughtfully customised outdoor space.
5. Aesthetic and Visual Appeal Boost
A well-designed deck can enhance the overall aesthetic of your home’s exterior. By choosing complementary materials and design elements, a deck can seamlessly blend with your home’s architecture and landscaping, making it a visually appealing addition that sets it apart.
6. Low Maintenance Options
Modern decking materials like composites offer low-maintenance, durable, and visually appealing solutions. Although these materials may require a higher initial investment, they reduce the need for upkeep, a strong selling point for buyers seeking the advantages of outdoor living without the regular maintenance demands of traditional wood decks.
7. Affordable Renovation Alternative
Decks are relatively affordable compared to major home renovations and yield impressive returns. A deck is ideal for homeowners wanting to add value without extensive indoor remodelling. This improvement can provide enjoyment and value now while increasing your home’s marketability in the future.
A deck is a valuable and strategic addition to any home. It provides a functional outdoor area and enhances aesthetic appeal, buyer attraction, and home value, offering one of the highest returns on investment among home improvements.
Factors That Impact The Value Of A Deck
While decks can increase home value, there are specific factors to consider that may affect the overall return on investment. These include:
1. Climate And Location
- Decks are highly desirable in warmer climates, where people spend more time outdoors. Homeowners in these areas are likelier to see a higher return on their deck investment because outdoor spaces are used year-round.
- In colder regions or areas with long winters, the demand for outdoor space may be lower, reducing the perceived value of a deck.
2. Labour Costs
- Building a deck can save significant money, leading to a higher ROI when selling the home. Hiring contractors increases the initial cost, slightly reducing the percentage of the investment recovered during a sale.
- DIY deck projects can be rewarding if you have the skills, but to attract future buyers, ensure the quality remains high.
3. Material Selection
- The choice of materials greatly influences both the upfront cost of the deck and its long-term ROI. More expensive materials like composite may only sometimes yield a higher return than traditional wood.
- It’s important to balance cost with durability. While premium materials may have a longer lifespan and lower maintenance requirements, they sometimes translate to a higher ROI in some regions.
Regional Differences In Deck Value
The value a deck adds to your home can vary depending on the region. In areas with warmer climates or where outdoor living is highly valued, a deck may increase the home’s resale value more significantly. Below are examples of regional differences in the return on investment:
- Warmer Regions: Due to the demand for outdoor spaces, homeowners can recover up to 81% of the cost of a wood deck in places like the Pacific and Mountain regions of the U.S.
- Cooler Regions: In colder areas, such as the upper Midwest, the ROI for a deck may be as low as 59%, as outdoor spaces are used less frequently throughout the year.
Understanding these regional differences can help you decide whether adding a deck is a worthwhile investment in your area.
Tips To Maximise The Value Of Your Deck
To ensure your new deck adds the maximum value to your home, consider the following tips:
1. Choose The Right Materials
- Opt for materials that suit your climate and budget. While composite materials are durable and require less maintenance, traditional wood may offer a better ROI if your budget is limited.
2. Design For Functionality
- A deck should be functional and suit the overall flow of your home. Whether you want a space for outdoor dining or a relaxing retreat, make sure the design complements the needs of future buyers.
3. Focus On Quality
- A well-built deck will stand the test of time. Poor construction can detract from your home’s value, while a sturdy, high-quality deck will impress potential buyers and increase resale value.
4. Incorporate Low Maintenance Features
- Low-maintenance features, such as built-in seating or weather-resistant materials, can increase your deck’s appeal. Buyers are more likely to be attracted to a deck that doesn’t require a lot of upkeep.
5. Consider Your Neighbourhood
- If you live in an area where decks are common, adding one to your home can help keep it competitive with other listings. If your home is the only one without a deck, it could be less appealing to buyers.
Conclusion
Adding a new deck is an excellent investment that can increase the value of your home, provide more usable space, and improve overall aesthetics. With the potential to regain up to 100% of the construction costs, a well-planned deck project offers a strong return on investment, particularly in regions where outdoor living is a priority.
By carefully considering the materials, design, and cost, you can ensure that your new deck enhances your lifestyle and adds significant value to your property. Whether you plan to sell or enjoy your home more, a new deck is a smart and effective way to increase your home’s worth.
FAQs About Building Decks
What Is The ROI On A New Deck?
When the time comes to sell your home, a homeowner can expect to recoup about 65% of the cost of building a new composite deck. Compare that to a bathroom addition where you recoup about 57% of the investment. With a kitchen renovation, the return on investment can be in the low 60s range.
Does A Backyard Deck Add Value?
On average, homeowners spend just over $16,000 to add new wooden decks but only see the resale value of their homes increase by $11,000, which is about 66% in recouped costs. However, restoring a wood deck can be a smart investment if it is an option.
How Do You Support A Deck Without Posts?
Instead of using footings, adding a gravel level will give you the drainage aspect you are looking for. You can then add a frame of wood that anchors in concrete blocks that sit in the gravel creating your new deck. Concrete blocks won’t rot, making them an ideal option for those who don’t want to use wood.
Should You Waterproof The Underside Of A Deck?
Waterproofing is a concern for any wood deck system, as exposure to water can cause damage to the deck or your house. Although you must waterproof the top of almost any deck, you might also need to consider waterproofing underneath the deck, particularly if you have an elevated or roof deck.
Is It Better To Nail Or Screw Deck Boards?
Decking screws are better than nails when building a deck. Decking screws hold down your decking more securely than nails and will stop your decking from warping. Also, you can easily remove screws for deck maintenance without causing damage.
