Adding a pergola isn’t an inexpensive project. Even a basic one will cost a few hundred dollars to install. You want to know that you are spending the money wisely.
This raises an important question, how much value will the pergola add, and is a pergola a good investment?
An outdoor improvement, like a pergola, will usually have an average Return on Investment (ROI) of 50 percent. This can depend slightly on where you live, with ROI in warmer states closer to 55 percent. The type of amenities included and the size of the pergola will also impact the value.
Is A Pergola A Good Investment?
A pergola is considered a good investment. It will achieve a strong Return on Investment (ROI), helping to increase the property’s value. Typically, pergolas have an ROI of 50 percent. Plus, it can provide non-tangible benefits, like improved mental health and a stronger family connection.
There are two ways that a pergola can offer a return on investment. First, it can help you improve your mental health and make a living on the property more pleasurable.
There are many ways that a pergola can do this. It can allow you to spend more time outside with your friends and family.
A pergola can also be a valuable place to unwind at the end of a busy day.
It can also provide a financial benefit, increasing the value of your property. How much value the pergola will add can be difficult to estimate, as it will depend on a range of factors.
These include:
- Where you live. Pergolas provide value because they allow you to enjoy spending more time outdoors. However, more buyers will look for this in warmer states with more pleasant weather conditions. If you live in a colder area, you might consider adding a heater to the pergola. This ensures that you will be able to use the structure year-round.
- Size of the pergola. Another thing the buyer will be considering is how much it will cost to build a pergola from scratch. This means that they will ascribe more value to a larger structure.
- Position of the pergola. A pergola should be the ideal place to sit and chill out during summer. However, this can be a problem in a disused or overgrown part of your garden.
- Other amenities in the pergola. Sometimes, you might want to set the pergola up as an entertaining space. This can mean adding things like a barbecue, fans, or lights. There might be enough space to add a dining table at other times.
- Type of pergola. Finally, it’s important to consider the type of pergola and the quality of the construction. Generally, pergolas made from quality wood, like cedar, are considered more valuable.
Usually, when talking about the value a pergola can unlock, it’s best to consider the Return on Investment (ROI).
This figure tells you what percentage of the project’s value will be returned to you during the sale. For example, if a pergola costs $4,000 and adds $4,000 to the property value, that’s an ROI of 100 percent.
As you would expect, the ROI of these projects will vary across the country. For example, adding a patio in Minnesota will give you an ROI of 46.3 percent(1). If you live in Los Angeles, you can expect an ROI of 53.8 percent.
If you want to use a pergola to create a more elaborate outdoor area, the ROI on your investment will increase.
For example, if you add flagstone pavers, an outdoor kitchen, lights, and a gas-fueled fire pit, you could achieve an ROI of 54.9 percent(2).
It’s unlikely that you will be able to get a 100 percent ROI on any home improvement project. But that doesn’t mean that it will be a poor investment.
It’s important to factor in the benefits you would have received after the pergola was built, like the quality time your family spends together enjoying the space.
Why Does A Pergola Add Value?
Pergolas make it easier for prospective buyers to enjoy an outdoor space. This is especially important in a warmer state, where they can use the pergola throughout the year. Furthermore, buyers will view a pergola as an outdoor entertaining space.
We’ve seen that adding a pergola to your backyard can increase the value of your property. But what are some reasons why a buyer might be willing to pay more for a house with a pergola?
First, it will allow them to enjoy spending more time outdoors. This is a big benefit in the hotter states, where you can use the pergola throughout the year.
Outdoor living is becoming a more important consideration amongst buyers(3).
Even if you don’t live in a warmer state, you can still use a pergola to create a pleasant outdoor space throughout the year. You’ll just need to add some kind of heating. This can be an electric heater or putting in a fire pit.
Depending on the pergola you build, a prospective buyer might view it as an entertaining area. This can be a huge value-add for families, giving them a place to host birthday parties and other outdoor events.
How To Get The Most Value From A Pergola?
Keep the initial investment down by construction costs low. People can do this by installing a pergola themselves. Next, strive to create a practical space. Electrical items, like speakers or heaters, can make the pergola better suited to entertaining guests.
Usually, a pergola will make an excellent investment. But you can do a few simple things to unlock the most value from your pergola.
These include:
- Build it yourself. One of the simplest ways to boost your ROI is to lower the initial investment cost. You can avoid the expenses of hiring a professional construction company. There are plenty of pergola kits that you can purchase, with many under $3,000. Then, all you need is some basic tools to put it together. You should be able to do it on the weekend. Though you should check the council approvals process so you know everything will meet the building codes.
- Think about how it will be used. Knowing how the pergola will be used during the construction phase is a good idea. This will allow you to create something that will provide value for a prospective home buyer. For example, you might want to add speakers to listen to your favorite songs as you relax.
- Maintain the pergola regularly. After you have finished building a pergola, take care of it. Otherwise, it will become rusty or might even start to develop mold. The structure should last between 10 to 12 years as long as you maintain it properly.
- Mix it with other outdoor areas. Your pergola should be the centerpiece of any outdoor living space. It’s important to ensure it ties in with the rest of the elements, creating a cohesive space. Failing to do this is one of the most common mistakes that real estate agents will see.
Will a Pergola Add Value to My Patio If It Can’t Withstand Harsh Weather Conditions?
When considering the addition of a pergola to your patio, it’s crucial to prioritize pergola durability in hurricanes. A sturdy, well-built pergola can certainly add value to your outdoor space, but if it can’t withstand harsh weather conditions, it may not be worth the investment.
Final Thoughts
Your pergola isn’t just a beautiful addition to your home. It can also add value to the property, increasing the amount a buyer is willing to pay.
Usually, you can expect to get a 50 percent ROI, though it might be a little higher depending on the part of the country you live in.
