From a trends viewpoint: The desire for fully programmed outdoor spaces has not waned. Outdoor kitchens, covered dining spaces, fireplaces with seating, and bar areas for watching sports are each in high demand, according to the latest outdoor-living research from Houzz.com.
The trends also show increasing demand for specialized amenities in these rooms—heaters, louvred pergolas, architectural lighting, and big-screen TVs, to name a few. Outdoor kitchens, in particular, are increasingly amenitized with cooktops, hoods, pizza ovens, smokers and a host of specialty appliances, as well as bold and beautiful ruggedized cabinets and food-storage options.
Kitchens lead the way indoors. The same can be said of those built outdoors.
From a supplier viewpoint: The relative strength of outdoor living as a category is creating new opportunities for partnerships that will continue to fuel innovations across many outdoor-living product categories.
The recent announcement that TimberTech parent company, AZEK, agreed to merge with fiber-cement siding giant, James Hardie, shows the importance of the composite decking category. It suggests that composite decking is poised to continue taking share from wood decking materials of all types, from traditional lumberyard staples on up to exotic Brazilian hardwoods like ipe.
Today, wood decks remain the No. 1 decking material by volume, but higher-priced composites as well as modified wood options are gaining share by offering design-forward color palettes with authentic patterns and profiles while requiring much less maintenance.
From a remodeling contractor viewpoint, outdoor living represents an enticing market opportunity.
Homeowners are demonstrating resilient demand for updated and expanded outdoor spaces, even though they are high-cost, discretionary purchases. It appears that despite a 37 percent rise in project prices in recent years, clients are moving forward with projects while adjusting those plans rather than scrapping them altogether.
In the short term, in 2025 there may be trade downs in material choices as well as decisions to eliminate expensive extras, but these can be seen as minor trims based on data from Harvard’s recently released Improving America’s Housing report and from John Burns Research & Consulting.
Demand Across Many Cohorts
Among homeowners who are upgrading their living spaces, many are doing so to “extend” their living spaces while a smaller but sizable group is driven by a desire to upgrade or add outdoor kitchens.
According to the 2024 U.S. Outdoor Living Trends Survey, a survey of 1,100 homeowners conducted by Houzz, younger owners comprise the 33 percent of respondents who are seeking to extend their living spaces.
Of that group, 41 percent are Gen Xers, 38 percent are Millennials, and 28 percent are Baby Boomers. The report notes “entertainment” is a primary driver among those whose primary goal is to extend their living spaces.
One in eight homeowners who said they are pursuing outdoor living projects are doing so to upgrade or add an outdoor kitchen, which tend to be bigger-ticket projects that involve many skilled trades to complete.
Fifty-eight percent of this group said their projects will include the installation of plumbing, electrical and heating systems; appliances, 58 percent; countertops, 50 percent; storage, 22 percent; and roofing (indicating a new covered space) was included by 22 percent of those pursuing outdoor kitchens.
Further, the Houzz research uncovered several important “triggers” for homeowners pursuing outdoor-living spaces. The top trigger was to replace and upgrade elements of existing outdoor spaces that had deteriorated or broken down. At 41 percent, this represents the repair portion of the outdoor living market.
Second and third triggers—“finally have the time” and “finally have the means”—represented 27 percent and 26 percent of the Houzz respondents. This group of 53 percent can be seen as purely discretionary spenders and, therefore, represents larger-ticket projects.
Combination of Lifestyle and ‘Strategic’ Drivers
The most recent U.S. Remodeler Index from Qualified Remodeler and John Burns showed an uptick in expectations for larger remodeling projects in 2025. (That reading was taken before dramatic changes to trade policy were announced last month.)
The index pegged remodeler sentiment at a 62 reading on a scale where any reading over 50 is considered strong. Verbatim feedback from remodelers who responded to that survey offered additional insight into the drivers for major discretionary projects like multi-room outdoor living programs.
“Locked in” by ultra-low interest mortgages, many are taking a long-term, “strategic” approach to investments in their homes. The verbatim feedback was collected anonymously according to the research protocol, but the type of remodeler and location were allowed to be published.
“People are looking for designs that stand the test of time, quality products that will last. More innovation and tech are being sold, like smart appliances, home water chillers. Self-care is also growing, and people are looking for more than just a bathroom; they are looking for wellness space,” said a large kitchen and bath remodeler from the Northeast region.
A full-service remodeler in the Midwest suggested a flight to higher-quality finishes and amenities to enjoy now, which will help resale value in future years. “Our clients are looking at space upgrades versus space additions. We are seeing greater demand for higher-quality finishes and amenities.”
Top Outdoor Amenities
The recent Houzz report also detailed the top must-have features among homeowners renovating or adding outdoor kitchens. It’s not surprising to see grills (88 percent) and beverage refrigerators (67 percent) as well as cooktops, faucets and sinks (each 46 percent), at the top of this list.
The strength of pizza ovens (32 percent) and smokers or deep fryers (24 percent), however, is broader than what might have been expected. Both can be categorized as premium, even luxury items.
Another marker of the strength of bigger-ticket outdoor kitchen projects was the prevalence of vents reported by Houzz respondents. Thirteen percent said they had included them in their projects, which infers the presence of covered spaces that require venting.
Much of the current research on outdoor living reports on higher demand for technology in their outdoor living spaces included connected and smart home features that give homeowners the ability to use controllers and smart phones to control audio, video, lighting, heaters, fans and other devices while seated or lounging in their outdoor spaces.
Lighting fixtures topped the list with 69 percent of the respondents saying they are included in their projects. Security cameras were cited by 38 percent of the respondents, followed by speakers or sound systems (22 percent) and smart irrigation systems (20 percent) and TVs (16 percent). The report noted that fully 68 percent of homeowners said their outdoor devices are controllable via mobile phone.
Long Live the Deck
Decks are, and have been, homeowners’ most important expression of their outdoor-living preferences. As mentioned previously, face-nailed wood decks remain the dominant type of deck built each year, with redwood leading the way.
But the market-share strides made by composite decking, which have higher upfront costs, are noteworthy. In recent years, there has been a proliferation of new colors, patterns and profiles that come with longer warranties for color and performance.
In addition, many decking lines now include matching accessories for aprons and stair risers. Other innovations include fast-install hidden fasteners, stairway and railing lighting, and compatible railing systems.
Composite decking manufacturer Trex recently put out its list of decking and outdoor-living trends in a forecast report for 2025. The company focused on seamless transitions from inside out; climate-friendly features; smaller spaces that are cozy and curated; technology that merges comfort with convenience; and last, a focus on wellness by “harmonizing sustainability and serenity.”
“When indoor and outdoor spaces flow effortlessly, a home feels more harmonious,” explained Trex COO Adam Zambanini of the indoor-outdoor trend. “It’s no coincidence that our latest decking offerings closely mimic the look and feel of indoor flooring. Featuring nature-inspired hues and subtle graining, these looks offer the visual continuity and elevated style that today’s homeowners are seeking.”
Universal Forest Products’ Deckorators division created a similar report featuring trends from some of its leading deck builders and remodelers. The report analyzed many parts of the outdoor living trend: key elements of outdoor kitchens, the ways the large decks and small decks are amenitized differently and, most importantly, the need to create spaces for multiple purposes.
“Today’s homeowners are putting more thought into how they want their outdoor living spaces to function,” the report summarized. “Multi-purpose is the word on the street: People are looking to maximize the utility of their spaces and extend their use throughout the changing seasons. The best way to achieve this is with the creation of different flexible-use zones around the deck.
“Think about gathering places that would encourage conversation and connection, from outdoor kitchens and bars to spas and cold plunges, varied seating areas, and entertainment centers. Outdoor rooms are versatile, and they can take shape in both small and large footprints.”