Outdoor kitchens have become all the rage lately. According to architecturaldigest.com, they were the most sought-after kitchen trend of 2022.
This is partly because many people are spending more time at home, and outdoor kitchens make it easy to do so, especially when the weather is nice.
But is an outdoor kitchen worth the investment? Read on to find out!
Factors to consider before investing in an outdoor kitchen
Needless to say, adding an outdoor kitchen to your home costs money.
For a quality kitchen, you are probably looking at anywhere from $10,000 to $20,000.
To help ensure your outdoor kitchen turns out to be a good investment, consider the following:
1. Return on investment (ROI)
The most concrete way to assess an investment in financial terms is to calculate the return it will generate, aka return on investment (ROI). This can tell you whether you will make money by adding an outdoor kitchen to your home and how much.
Of course, many variables affect the ROI of an outdoor kitchen, including the total cost, the kitchen features, and the market you live in.
Michael Kelczewski, a Realtor with Brandywine Fine Properties Sotheby’s International Realty, told supermoney.com, “Determining the resale value of a specific amenity is challenging, as each submarket differs. That said, the general rule of thumb is a 50% ROI for outdoor kitchens.”
The reason outdoor kitchens increase the resale value of your home is that they expand its living space. Owners can use it to spend more time outside. Many potential buyers will value this added benefit and be willing to pay more for it. The outdoor kitchen may also help your home stand out from other properties on the market.
That said, real estate values can go up and down (as we’ve seen in the last few years). But over the long run, they tend to go up.
It’s also telling that the market for outdoor kitchens is growing fast. According to Grand View Research, the global market for outdoor kitchens was valued at $19.64 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 8.3% from 2022 to 2030. If the demand for outdoor kitchens keeps up this pace, it could put upward pressure on outdoor kitchen prices, and you could come out making a profit when you sell.
2. Experiential value
Financial gains aren’t all you should consider when deciding whether to invest in an outdoor kitchen. There’s also something to be said for the real experiential value it can add, aka “return on enjoyment” (ROE).
For example, you may find that an outdoor kitchen helps your family spend more time together during meals or encourages you to host more gatherings with friends and family. These benefits can provide real value that’s hard to put a number on but that’s nonetheless real.
As a result, it’s important to ask yourself how much you will enjoy having an outdoor kitchen and how much you expect to use it. Don’t make your investment decision wholly on what future buyers might think. Prioritize your own current wants and needs.
3. Cost of added features
Not all outdoor kitchens are the same. Some are basic models while others have all the bells and whistles you could think of.
Potential outdoor kitchen features include a pizza oven, a flat-top grill, a smoker, a sink, a dishwasher, a fridge, counter space, outdoor furniture, an island, outdoor lighting, cabinetry, a sink, a pavilion for cover, and much more.
The cost of these features can add up fast and dramatically change the outdoor kitchen’s final price, which directly affects your ROI.
Then again, added features may also increase your ROE and make the outdoor kitchen more valuable to you personally. Either way, the cost of added features is something to consider.
4. Material choice
The type of material you choose to build your outdoor kitchen with will also impact its ROI. You have many materials to choose from: stone, stainless steel, wood, brick, concrete, composite materials, and more.
Some materials are more durable against wear and tear and bad weather than others. They’ll last longer but may also cost more as a result. The same goes for outdoor kitchen appliances. Stainless steel lasts longer than plastic or composite materials.
Again, weigh the higher cost of some materials against their increased durability, but don’t skimp on materials if you don’t have to. You and future homeowners will appreciate it.
5. Phasing vs. buying all at once
Lastly, you can reduce the upfront cost of an outdoor kitchen by building it in phases. Of course, this will also delay some of the benefits. But if you’re worried about being able to justify the high price tag, phasing is a good compromise.
For example, you could start with grill, sink, and countertops. You can then leave the fridge, pavilion, and other less essential features for later. Just make sure you have a master plan that naturally orders each phase and keeps the outdoor kitchen usable throughout. That way, you can still benefit from the outdoor kitchen before it’s complete.
The final verdict
Ultimately, adding an outdoor kitchen to your home can be a great investment. You just need to make sure you properly value the costs and benefits and then run the numbers. Every outdoor kitchen project will be different.
It’s also important to research different contractors and compare offers. The same goes for lenders if you choose to finance your outdoor kitchen. As long as you do your due diligence, an outdoor kitchen could turn out to be a great investment that you’ll enjoy for years to come!
