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The Outdoor Home Improvement Trends Shaping Backyards in 2026

Warmer weather means barbecues, pool parties, yardwork, and outdoor renovation season.

Homeowners this summer are embracing outdoor living, installing outdoor kitchens, revamping their landscaping, and creating quiet backyard retreats, according to the 2026 Houzz U.S. Outdoor Trends Study.

About 25% of homeowners surveyed said they want to make their outside spaces more accommodating, a 3% increase from last year, according to the study. They’re increasingly prioritizing their wants over how these improvements will impact future resale values.

And many homeowners are tapping into their home equity to fund the renovations.

“It’s exciting that many homeowners are prioritizing their comfort over resale value more than ever,” said interior designer New York’s Jamie Rae Walker. “People want to enjoy the fresh air and escape from the familiarity of their interior spaces while being just as comfortable outdoors.” 

Here’s where homeowners are spending their outdoor renovation dollars in 2026.

Create an outdoor living space with comfortable seating

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Homeowners are looking to extend their indoor living areas outside.

The Houzz study found that a whopping 83% of renovated outdoor spaces have a lounge or seating area, 71% have a sofa or lounge chairs, and 55% have a dining area with a table and chairs.

“Outdoor lounge seating has come a long way in terms of durability and comfort,” said Walker. “Storage benches for pillows and blankets can double as extra seating and outdoor rugs help to make a space feel incredibly cozy.” 

Plus, homeowners seem willing to spend a little more to achieve the outdoor gathering place of their dreams right now.

“People used to be looking for cheaper deals on furniture but now I’m seeing that people will pay up for sofas and chaise lounges,” said Colleen Bennett, founder and principal designer at CBB Design Firm in Morganton, NC, “They don’t want to be sitting in uncomfortable furniture outdoors.”

Outdoor kitchens are one of the most popular home upgrades

One of the most popular projects this summer are outdoor kitchens. They continue to rank among homeowners’ most ambitious backyard revamp projects, transforming patios into fully functional cooking and entertaining spaces.

“Outdoor kitchens have become an extension of the indoor kitchen, which is why it’s so important that the design, materials, and overall aesthetic feel connected to the home,” said Bennett. “When clients invest in an outdoor kitchen, they’re creating another living space, not just adding a grill to the backyard.”

Indeed, today’s outdoor kitchens are much more extensive, with many including beverage refrigerators (62%), appliances (61%), sinks (59%), faucets (49%), cooktops (36%) and even pizza ovens (29%).

Plus, for 95% of people adding outdoor kitchens, this is a start-from-scratch effort, which means it’s a major investment.

“Outdoor kitchens can cost just as much as indoor kitchens, so treat them the same way,” said Bennett. “Once it’s a permanent fixture, you’ll want it to last.”

Garden and landscaping upgrades add beauty and function

Gardens are key this summer, with homeowners designing outdoor spaces that are both beautiful and productive.

According to Houzz, 74% of people create beds or borders to define their gardening areas, while nearly two-thirds (64%) feature lighting to ensure that their exterior landscaping remains aesthetically pleasing even after dark.

Stephen Campanella, a garden design expert and founder of New York City’s Stephen Campanella Design, likes to incorporate solar lights to harness the sustainability aspect of a garden, but he also suggests people consider companion planting.

“One of my favorite things to do is mix vegetables, herbs, and flowers all together in the same beds,” said Campanella. “They really do support each other, and honestly it just looks more beautiful, too.”

Quiet backyard retreats are becoming a must-have outdoor feature

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While outdoor entertainment areas remain popular, many homeowners are also carving out dedicated spaces to relax, read, and recharge.

According to Houzz, 22% of homeowners are adding audio-visual features to their outdoor spaces. Yet even more, 55%, say they’re creating a quiet retreat or reading area, highlighting a growing desire for peaceful outdoor escapes.

When figuring out where to place your “time-out” space, Campanella recommends that you don’t limit yourself to one area but instead create multiple oases within your yard.

“Walk the property, see what the light is doing, notice the places where you feel most relaxed. Those spots will tell you where to put a hammock, a couple of chairs, or a firepit,” said Campanella. “I love the idea of having peaceful little ‘moments’ scattered throughout a yard, it actually makes the whole property feel bigger and more alive.”

How to finance your outdoor renovation with home equity

If adding comfort and cosmetic appeal to your outdoor spaces feels like a worthwhile goal this year, you may not have to pay for every upgrade out of pocket. Homeowners who have built equity in their homes may be able to use a portion of that value to help fund larger renovation projects.

Depending on your financial situation, a home equity line of credit (HELOC), cash-out refinance, or second mortgage could provide the financing needed to transform your backyard while spreading the cost over time.

Whether you’re dreaming of an outdoor kitchen, a comfortable lounge for entertaining, or a quiet retreat surrounded by lush landscaping, tapping into your home’s equity may help bring those plans within reach.

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Contributing Writer, New American Funding

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