Forget the Patio: Why 77% of Homeowners Want These Features for Their Backyard Renovation

More than ever, the yard has come to represent an extension of your home. It’s where homeowners have the option to spend time relaxing, entertaining, exercising, gardening, and bonding with loved ones.

Perhaps then it should come as no surprise that 77% of homeowners are planning a backyard upgrade in 2026 with a median budget of $1,500, according to a new study by Alan's Factory Outlet. 

But some upgrades are more desirable than others.

“We’re seeing a pivot toward 'functional' backyards. With the median budget sitting at a tactical $1,500, homeowners are moving away from massive overhauls in favor of high-impact, utility-driven upgrades,” says Alan Bernau Jr., owner of Alan’s Factory Outlet in Luray, VA.

If you’re ready to give your backyard some TLC, take the time to understand the latest trends and how they may (or may not) fit in with your lifestyle.

The most in-demand backyard upgrades 

Landscaping and aesthetics

The study found that landscaping and aesthetics were the top backyard priority, cited by 62% of homeowners surveyed.

New sods, privacy shrubs, rocks, lights, flower boxes, and edging can all give your backyard a glow-up, usually all in one day—no construction required. 

“Landscaping updates benefit everyone, including potential sellers who plan to sell their property in three to five years and families who simply want to improve aesthetics," says Yoni Asulin, licensed design-build contractor and owner of ASL Remodeling in San Francisco. 

Fortunately, fresh landscaping doesn’t have to be expensive, though the average cost is $3,517, twice the intended budget. Still, depending on how much you plan to accomplish, this is still doable.

Outdoor seating areas

Meanwhile, 48% of homeowners have outdoor seating areas in their plans, hoping to take advantage of the fresh air.

Paver patios, pergola lounges, covered decks, and gravel fire-circle seating areas are all worth exploring, especially if you love to host. But just like with landscaping, costs can run the gamut.

“A basic setup can begin at approximately $1,500, whereas larger covered versions can go over $10,000,” explains Asulin.

Raised garden beds

Raised garden beds lead in search volume with 1.16 million searches, especially in the Midwest and Northeast. According to the survey, 38% of homeowners are considering upping their gardening game this year—and for good reason.

They're inexpensive, functional, and provide a productive use of outdoor space.

“Raised garden beds—which range from $300 to $1,500—reduce the need for bending, improve drainage, and allow for a more organized planting area compared to in-ground gardens,” Asulin says.

Families with children, retirees, and those interested in growing fresh herbs or vegetables will benefit from them most.

Firepits

Firepits remain popular—and prioritized by 35% of homeowners in the study—because they act as informal social gathering places. 

“In terms of home improvement projects, firepits offer the greatest 'memory-making' return per dollar,” explains Asulin.

It's natural to gather around them, making these features perfect for talking, cooking, and enjoying the outdoors even during colder months. 

Firepits are usually priced between $200 and $3,000, based on the pit type, size, and material. 

Shed upgrades

Sheds are no longer just a place to store lawn mowers and random tools. They’ve become functional spaces for work and leisure, with 19% of homeowners incorporating them into backyard projects.

Asulin points out that sheds are now being converted to home offices, workstations, gyms, studios, and garden hideaways. 

“Upgrading a shed will only require about $2,000, while remodeling and installing insulation and power will set you back up to $15,000 or more. Fortunately, this is cheaper than putting on an addition to your home,” Asulin adds.

Storage improvements

Storage improvements are important for most homeowners, especially those with smaller homes and/or larger families. And the study found that 19% are considering them.

Hidden storage benches, storage decks, tool walls, and bike storage can all be beneficial. 

“Instead of spending money on an aesthetic upgrade, which is temporary and less useful, investing in storage at around $500 to $3,000 can provide better value,” says Asulin.

Hot tubs or plunge pools

Health-focused backyard updates, including hot tubs and plunge pools, are also rising in popularity, with 12% of homeowners planning to incorporate these features.

There are 1.08 million searches and 227,000 TikTok posts on cold plunge installation, concentrated in cities with warm weather like Miami, and Scottsdale, AZ.

“Rather than investing in memberships to spas and health clubs, many homeowners are creating their own personal spa areas in their backyards. They’re ideal for busy execs, athletes, and just about anyone seeking relaxation from hectic days,” Asulin explains.

You can buy a hot tub for $2,000 to $11,000 and a plunge pool for an average of $28,000.

Pickleball courts

“Backyard pickleball” ranked as the top search term in three Arizona cities, including Gilbert, Chandler, and Mesa. And 8% of homeowners are exploring pickleball courts for their backyards.

If you’re looking for a low-impact, enjoyable workout at home, a pickleball court might be worth it, especially if you live in a warmer climate.

Then again, a professional pickleball court installation will run you $20,000 to $50,000, depending on your court size and surface, so you might want to rethink this if you're on a budget.

Outdoor saunas

The study found that 5% of homeowners are toying with the idea of placing outdoor saunas in their backyard—and most of the searches for them are in colder-climate cities like Minneapolis.

Saunas appeal particularly to health-conscious homebuyers, athletes, and people living in areas with cold weather conditions. 

Most barrel saunas run $3,000 to $6,000, but a luxurious, customized installation might exceed $10,000. 

Mud kitchens 

Though they weren’t included in the study, one outdoor feature that has been talked about this year is mud kitchens.

“Mud kitchens have become increasingly common among families who wish to provide an outdoor play space for their children,” Asulin explains.

They usually involve a child-sized counter, bowls, old sinks, and natural elements where children get to get their hands dirty and create using dirt, water, and leaves.

“A contractor-installed mud kitchen is estimated to cost between $400 to $2,000, yet it may be worth it if it’s used more than most toys,” notes Asulin.

How to choose the right backyard upgrades

When trying to determine the ideal backyard improvements, focus on your lifestyle and the ROI of usage.

Let’s say you have a $1,500 budget. 

In this case, Bernau recommends you prioritize upgrades that you’ll use daily—like a garden bed or high-quality seating—rather than purely ornamental changes. 

Ask yourself, will I use this outdoor upgrade once a week for at least three years? If the answer is yes, Asulin recommends you move forward with it. Of course, the larger your budget, the more projects you can pursue. 

Don’t forget to consider resale if that's a priority to you. 

“If you hope to sell your home in the near future, wellness features like saunas or plunges might make sense as they’re becoming significant 'wow factors' in competitive markets,” explains Bernau.