Seventy-seven percent of U.S. homeowners plan backyard upgrades in 2026, with a median budget of $1,500, according to a new study by Alan's Factory Outlet. But the focus has shifted from purely aesthetic improvements to functional, high-impact features that extend living space.

The Big Picture

The backyard has evolved from a simple patch of grass into a multi-purpose extension of the home—a place for work, exercise, gardening, and socializing. "We're seeing a pivot toward 'functional' backyards. With the median budget sitting at a tactical $1,500, homeowners are moving away from massive overhauls in favor of high-impact, utility-driven upgrades," says Alan Bernau Jr., owner of Alan's Factory Outlet in Luray, VA.

This shift reflects broader trends: the persistence of remote work, a desire for outdoor living spaces post-pandemic, and a focus on cost-effective improvements that boost resale value. The study shows that 62% of homeowners prioritize landscaping and aesthetics, but with a practical twist—privacy shrubs, rocks, lights, flower boxes, and edging that can be installed in a day. "Landscaping updates benefit everyone, including potential sellers who plan to sell their property in three to five years and families who simply want to improve aesthetics," says Yoni Asulin, licensed design-build contractor and owner of ASL Remodeling in San Francisco.

“"Firepits offer the greatest 'memory-making' return per dollar of any home improvement project." — Yoni Asulin”