4 Great Reasons to Build an Outdoor Living Space and 4 Ways to Pay for It

This guide explores four compelling reasons to create an outdoor living space—and four practical ways to make it happen—so you can transition from imagining to enjoying your new outdoor space.

4 Great Reasons to Build an Outdoor Living Space

Reason #1 – Boost Your Home’s Market Value

Your home’s value is determined by appraisers, lenders, agents, and buyers. It’s predicated on many factors, including location, comparable properties, market conditions, size and square footage, physical condition, and upgrades and improvements. You can’t change your home’s location, its comps, or the current real estate market, but adding a high-quality patio, fire feature, or outdoor kitchen can impact the latter three factors and translate into higher property values when it’s time to sell.

In addition to increased home values, homeowners also see a handsome return on investment (ROI) when they install an outdoor living space. According to the National Association of REALTORS®’ 2023 Remodeling Impact Report: Outdoor Features, a new patio can recoup approximately 95% of its installation cost at resale, making it one of the highest-value home improvement projects a homeowner can undertake.

Reason #2 – Cost-Effectively Expand Your Living Space

Homeowners looking to expand their living space often limit their thinking to only interior opportunities. But adding an interior room or finishing a basement can be expensive, time-consuming, and disruptive. Try thinking outside the box… literally! Outdoor living spaces, by comparison, provide a much more affordable way to expand your usable square footage.

A patio, fire feature, or outdoor kitchen can function like an additional living room, dining room, or entertainment space, often at a fraction of the cost of interior construction. Rosetta Hardscapes outdoor living solutions enjoy installation efficiencies, and their wet cast composition ensures a long and beautiful life for your new addition, making them a much more cost-effective choice than natural stone.

Reason #3 – Save on Entertainment Spending

Dinner out? Drinks with friends? Weekend entertainment? These costs add up, and quickly. According to US FOODS’ The Diner Dispatch, a survey of 2024’s dining and takeout preferences, Americans spent an average of $191 per month dining out, or a total of $2,292 for the year. The top reasons to choose a meal out? Atmosphere (66%) and time to socialize (52%) – two challenges that patios, fire pits, and outdoor kitchens naturally help address.

An outdoor living space encourages more al fresco dinners, cozy fire-pit nights, and relaxing outdoor gatherings at home. Over time, these everyday savings make the project even more worthwhile, especially for families who enjoy hosting.

Not sure how to begin budgeting for your outdoor living space? We’ve got you covered. Review our guide Building a Budget for Your Outdoor Living Space to get started.

Reason #4 – Add an Activity to Your Home

We spend the majority of our time at our homes, so why wouldn’t we want to ensure we have access to the things we enjoy most while we’re there? In the same National Association of REALTORS® report cited previously, 99% of homeowners who installed an outdoor kitchen reported that it gave them a greater desire to be home, and 71% claimed an increased sense of enjoyment when they’re home. A new patio (85% greater desire to be home / 85% felt more joy when home) and a fire feature (73% greater desire to be home / 78% felt more joy when home) weren’t far behind.

Of course, outdoor living spaces can be tailored to what you like to do. A few examples:

• Outdoor kitchen for grilling, smoking, or pizza nights, like this multi-purpose Pennsylvania patio with grilling station.
• Fire feature for evening conversations and family time, such as this serene fire pit in Sudbury, Ontario.
• Spa or pool area for relaxation and recovery, similar to this hot tub/pool combination in Georgia.
• Dining terrace for everyday meals outside, like this gorgeous al fresco Michigan dining patio.

Whether you love cooking, relaxing, entertaining, or all three, an outdoor space adds meaningful activity and enjoyment to your home life.

4 Ways to Pay for Your Outdoor Living Space

Option #1 – Home Equity Line of Credit (HELOC)

A HELOC allows you to borrow against your home’s equity, often with lower interest rates than personal loans or credit cards. Many homeowners choose HELOCs because:

• You only borrow what you need
• Repayment terms are flexible
• Rates are often more favorable

A HELOC can be one of the most cost-effective ways to finance long-term improvements, such as a patio or other outdoor enhancements. In fact, it was the funding mechanism of choice for more than half (54%) of renovation projects, according to the REALTORS’ 2025 Remodeling Impact Report, which focused solely on interior projects.

Option #2 – Cash-Out Mortgage Refinance

With a cash-out refinance, you replace your current mortgage with a new one – typically at a competitive interest rate – and take cash out from your home’s equity to fund your project.

This option may make sense if:

• You’re already considering refinancing
• You prefer a single monthly payment
• You want predictable, long-term financing

Keep in mind that a mortgage refinance offers the added advantage of reinvestment in your borrowing tool – your home. You’ll almost assuredly increase the value of your home with the funds you’re leveraging from its current valuation.

Option #3 – Personal Loan

Personal loans are fast, flexible, and require no equity. They’re subject to credit approval and often feature higher rates than secured credit options, such as HELOCs and mortgage refinances. Personal loans can be a financing pathway for homeowners who:

• Want to start construction quickly
• Haven’t built enough equity in their homes to borrow against it
• Have a smaller project or a simpler

For the right homeowner, personal loans offer a straightforward way to get a project moving without waiting on home equity. As long as you’re comfortable with the terms, they can bridge the gap between planning your outdoor space and bringing it to life.

Option #4 – A Phased Strategy

While not technically a financial tool to pay for your project, breaking a project up into financially manageable pieces is a sound strategy that can minimize the impact on a homeowner’s bank account. And it’s overlooked by many who mistakenly believe they have to build the entire outdoor living space in one fell swoop. So if you want to avoid financing, a phased approach is a smart strategy.

• Start with the main patio area, add the fire pit next year, and build the outdoor kitchen later.
• Install foundational hardscape elements like the patio, walls, and steps now and complete decor, furniture, and plantings gradually.

A phased build allows you to control costs while still making steady progress toward your long-term outdoor vision. A word of caution when undertaking a phased approach: share your strategy with your contractor so they can confirm that the style and color of the materials you’ve selected for the initial installation will be available in the future.

An outdoor living space can enhance your home’s value and maximize your enjoyment of it. Whether you want more room to gather, a beautiful place to relax, or a smart way to boost your home’s marketability, the investment pays dividends for years to come. And with multiple financing options available, it’s easier than ever to get started on the outdoor upgrade your home (and your family!) deserves.