Does adding a deck increase your home's value?

Key takeaways

• Many homeowners get back most of what they spend on decks, but returns depend on materials, condition and the local market.
• Wood is less expensive and often delivers a higher percentage return; composite costs more upfront but lasts longer and needs less upkeep.
• The biggest returns come from decks that match the home, the neighborhood and the climate, not oversized or overbuilt designs.

Adding a deck to a home is one of the most common outdoor upgrades tied to resale value. But the payoff isn’t guaranteed. Returns hinge on the material, local market, size and condition.

More recently, decks have been delivering stronger returns, with owners recouping a larger share of construction costs than in recent years — making them one of the more reliable exterior projects.

A deck can add real value, but it depends on what you build and where you live.

Recent data from housing data company Zonda offers a clear starting point. A wood deck costs about $18,263 on average and adds roughly $17,323 at resale — close to getting your money back. A composite deck runs about $25,096 and adds $22,199, or a slightly smaller share of the cost.

The gains are relatively new.

In 2023, a wood deck brought back about half its cost. By 2024, that climbed to roughly 83%, and by 2025 it was near 95%. Composite decks followed the same pattern, rising from about 40% to nearly 89%.

The shift comes down to buyer behavior. With fewer homes on the market, buyers are paying up for places that don’t need work, especially ones with finished outdoor space.

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Outdoor space matters more than it used to.

The 2025 Zonda report found most homeowners feel more attached to their home after a project, and nearly half enjoy it more. At the same time, buyers are less willing to take on fixes. They want homes that are ready to use.

That shows up in how decks are viewed. A well-kept deck can add value and may signal the home has been taken care of. Appraisers consider both factors when judging a property's overall condition.

The choice comes down to cost and upkeep.

Wood is cheaper to build and tends to return a higher share of the cost. Composite costs more upfront but requires less maintenance and lasts longer.

Materials explain most of that gap. Pressure-treated wood runs about $2 to $6 per square foot. Composite is closer to $9 to $16.

Over time, upkeep becomes the deciding factor.

Wood decks last 10 to 20 years but need regular staining or sealing. Skip it, and they wear out faster.

Composite can last 25 years or more with little maintenance, mostly basic cleaning.

Timing can matter. If you plan to sell soon, wood often makes more sense because the lower upfront cost drives a higher return. If you expect to stay longer, composite’s lower upkeep can make up for the higher price.

Location affects both materials and value.

In hot, humid areas, composite tends to hold up better against moisture and mold. In drier climates, pressure-treated wood often works as well for less.

Just as important: what nearby homes have. Buyers compare your home to others on the market. If most listings have decks, not having one can hurt. If they don’t, adding one may not move the price much.

Use matters, too. In markets with mild, year-round weather, decks tend to add more value. In colder areas, the payoff is usually smaller.

Keep it in scale with the house.

A deck that’s too big can feel out of place. A good target is about 10% to 15% of the home’s size, or roughly 250 to 375 square feet for a 2,500-square-foot house, according to Zonda.

Simple features go further than flashy ones. Built-in seating, lighting and sturdy railings appeal to buyers. Bigger upgrades, like multi-level layouts or an outdoor kitchen, only pay off if they fit the neighborhood. If they don’t, you’re just adding cost.

The same goes for budget. As a rule, keep the project under 10% to 15% of the home’s value. A $40,000 deck on a $250,000 home may be hard to justify. On a $600,000 home, it may be more in line.

Adding a deck can raise your property taxes, but typically not by a lot.

What matters is how much value the deck adds, not what it cost to build. If it adds $5,000 in value and the local tax rate is around 0.89%, that works out to about $45 a year. In higher-tax areas, it could be closer to $100 to $150.

Permits are what trigger the update. Skipping one to avoid taxes isn’t worth it — it can cause problems when you sell, from failed inspections to fines. Permits are usually inexpensive and protect you legally.

Decks usually deliver stronger returns, according to Zonda.

Data shows a high-end patio costing about $51,000 and adding roughly $23,600 at resale, recovering less than half the cost. That’s well below typical returns for decks.

Lower-cost patios, around $2,000 to $5,000, are cheaper to install but don’t add as much value.

The difference is how buyers see them. Decks feel like added living space. Patios don’t always carry the same weight, though they can make sense on flat lots where a deck isn’t practical.

A deck can work against you if it looks worn or unsafe.

Rotting wood, loose railings, peeling stain and mold are all red flags. They tell buyers the home hasn’t been maintained, according to Zonda. Older decks are especially risky if they haven’t been inspected.

Going too big can also backfire. A large or custom build on a lower-priced home often doesn’t pay for itself, the report says.

Insurance is another factor. Elevated decks, hot tubs or missing railings can push premiums higher, Zonda's data shows. It’s worth checking before you build.

Look at your competition.

If similar homes in your area have decks and yours doesn’t, adding one can help your home stand out. Just keep timing in mind. Permits and construction can take weeks.

If you already have a deck, focus on fixing it up. Cleaning, staining and small repairs usually pay off more than building new. Buyers notice condition, and a well-kept deck goes further than a brand-new one rushed in before listing.

Do you need a permit?

In most cases, yes, especially if the deck is attached to the house or raised off the ground. Skipping a permit can cause problems at closing or reduce your home’s value. Check with your local building office before you start.

How long until it pays off?

A deck doesn’t generate income. You see the return when you sell. For example, a wood deck that costs about $18,000 and gets back most of that value does so at resale, not over time. If you stay for years, the benefit is how much you use it — not price growth.

 Related content:

• Are home improvements tax deductible? 
• Does it pay to remodel your home?

This article was updated June 24, 2026.