What’s the ROI on an Outdoor Kitchen?

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When it comes to increasing the value of your home, you can pull hundreds of different levers. And while most people focus on the inside of the home, you should never neglect the exterior. Outdoor living space is an extremely appealing factor for many of today’s homebuyers. Adding an outdoor kitchen could give your home’s value a big boost.

The Appeal of Outdoor Kitchens

Having an outdoor kitchen is advantageous for a variety of reasons. Here are several of the top benefits:

  • Good use of property. In most cases, your actual house only makes up a fraction of the property's total square footage. By building an outdoor kitchen, you essentially increase the usable square footage of your property without having to spend tens of thousands of dollars to add on more heated square footage. It’s a very simple and cost-effective way to get more use out of your home.
  • Great for entertaining. Everybody loves an outdoor kitchen. They’re especially great for entertaining in the warmer months. Rather than having everyone inside while you grill or cook, you can bring the party outside. This allows you to entertain and mingle, even when you’re busy preparing the meal.
  • More flexibility for cooking. Cooking the same meals in the same space night after night can get old pretty quickly. With an outdoor kitchen, you give yourself much greater flexibility. You’ll find yourself grilling much more frequently. Not only that, but you’ll have a wider menu of options to choose from. Goodbye, casseroles and frozen meals. Hello, fresh meat, fish, and veggies.
  • Increases property value. Today’s homebuyers are looking for a few particular features in homes. Outdoor living and entertaining space is one of them. By adding an outdoor kitchen, you instantly enhance the value of your property.

The first three benefits on this list all feed the fourth benefit. At the end of the day, the appeal of having an outdoor kitchen is financially reflected in the increase in property value. The question is, how much of a return on investment do you get? Let’s explore the answer to that question in further detail.

Exploring the ROI of Outdoor Kitchens

If you’re thinking about building an outdoor kitchen, it’s helpful to know the costs. Thankfully, RTA Outdoor Living has done a lot of the heavy computing for you. Check out these outdoor kitchen cost numbers:

  • The national average cost for an outdoor kitchen is $12,000 to $13,000; however, that’s a very broad figure that accounts for everything from small outdoor kitchens to fully-stocked luxury outdoor kitchens (so these numbers should be viewed accordingly).
  • The average cost of an outdoor kitchen ranges from $1,200 to $2,000 per linear foot when built from scratch. (This cost includes construction of the island, finishing countertops, buying and installing appliances, etc.)
  • With a prefabricated or modular outdoor kitchen, you can expect to spend much less. The average range is $4,000 to $10,000.

Depending on the source, you’ll find that the ROI of outdoor kitchens is anywhere from 55 percent to as high as 200 percent.

On the low end of the spectrum, Remodeling Magazine’s Cost vs. Value Report estimates a 55 percent ROI. This means a $10,000 outdoor kitchen would theoretically increase your home’s property value by $5,500. (Which actually isn’t bad if you’re planning on using the kitchen for a few years.)

On the high end of things, Inman reports, “Adding an outdoor kitchen sees an average ROI of 100 to 200 percent, but this depends largely on the climate (with higher ROI in warmer areas) and if durable materials are used.”

In most cases, the ROI of your outdoor kitchen is predicated on a few factors:

  1. The quality of the kitchen build
  2. The climate you’re located in
  3. The presence (or absence) of outdoor kitchens in comparable properties
  4. Additional elements and upgrades (like a fire pit, seating areas, etc.)

If you pay attention to these factors and build a kitchen that’s appropriate for your property, you’ll do just fine.

Adding it All Up

The key to a good outdoor kitchen is to design a space that improves the aesthetics of your backyard while also simultaneously making it more functional. If you can do that, you won’t have much trouble getting a positive return on your investment.

Comments (2)

Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello and thank you for sharing this great blog with us here in the Rain for this weekend.  

May 26, 2022 10:38 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

David Jackson, MBA I had not thought of that, but I agree.

May 26, 2022 02:49 PM