Embracing the Backyard Retreat Trend 2025: Opportunities for Home Improvement Contractors

The backyard is no longer just a patch of grass – it’s becoming a personal retreat. Homeowners across the U.S. are reimagining their outdoor spaces as sanctuaries for relaxation and entertainment. Instead of simply mowing the lawn, people are adding decks, cozy seating areas, and even outdoor kitchens to create their own mini oasis right at home. This isn’t just a fleeting fad; it’s shaping up to be one of 2025’s biggest home improvement movements, often dubbed the “backyard retreat” trend.

Why the shift? In part, busy modern lifestyles and more time spent at home (thanks to remote work and recent global events) have made homeowners crave a place to unplug and recharge without leaving their property. Rather than heading to a spa or resort, Americans are investing in bringing that vibe to their backyards. This emerging passion for outdoor living presents a golden opportunity for home improvement contractors. When nearly half your client base is dreaming of a better backyard, there’s a surge in demand for skilled contractors who can turn these outdoor visions into reality. By understanding the backyard retreat trend and what’s driving it, contractors can position their businesses to ride this wave and grow.

The Rise of Backyard Retreats

Hard numbers back up the buzz. A recent nationwide survey of 2,000 homeowners (conducted by Talker Research for Trex Company) found that 41% of U.S. homeowners plan to transform their backyards into personal “sanctuaries” or retreats in 2025. In other words, nearly half of American homeowners are prioritizing their outdoor living spaces this year. This makes backyard makeovers arguably the top exterior home trend of the moment. And what do these homeowners want in their backyard retreats? Fire features and privacy are high on the list.

According to the survey, 38% are looking to add fire pits or outdoor heating elements, and 37% are seeking enhanced privacy (think fencing, pergolas, or lush landscaping). Another must-have is better lighting: about one-quarter of homeowners plan to upgrade their outdoor lighting, illuminating their decks and patios for ambiance and extended evening use.

It’s not just about adding amenities – it’s about investing in a lifestyle upgrade. Homeowners reported they’re ready to spend serious money to achieve their dream backyards. On average, respondents expected to spend around $13,321 on these outdoor upgrades, according to the same survey, and sustainability is front-of-mind – 68% said they are opting for eco-friendly materials for their projects. From composite decking made of recycled materials to energy-efficient outdoor lighting, the green choices are popular. This emphasis on sustainable, quality materials aligns with the broader trend of homeowners wanting long-lasting value out of their improvements.

These numbers highlight a clear message: Americans are turning their backyards into staycation-worthy havens. The trend gained momentum during the pandemic when outdoor space became a safe, necessary escape, and it shows no sign of slowing down in 2025. In fact, the typical homeowner now expects to spend about 11.7 hours per week outside, a 22% increase in time spent outdoors compared to the prior year. Whether it’s for hosting friends around the fire pit, finding a quiet moment in a garden, or working al fresco on the patio, people want their outdoor areas to be as comfortable and personalized as their indoor rooms. For contractors, this widespread “backyard bliss” movement means a booming market for exterior projects – and a chance to help clients achieve their ideal retreats.

Why This Trend Matters

Increased Time at Home and Outdoors

One reason backyard retreats are taking off is the lifestyle shift toward more time at home. With remote and hybrid work becoming common, people are not chained to an office 40+ hours a week anymore. All those hours at home have led homeowners to invest more in their immediate surroundings. Rather than feeling cooped up, they want to enjoy their property to the fullest. A recent survey confirms this growing urge to be outside: about two-thirds of homeowners said they plan to spend more time outdoors in 2025 than they did in 2024.

In fact, they anticipate spending on average nearly 12 hours a week in their yards, which is a significant jump from the previous year. This extra outdoor time explains why features like comfortable patios, shaded work areas, and recreational zones have become more desirable. The backyard is becoming an extension of the living room (and sometimes the home office), so it needs to deliver comfort and utility. Homeowners view these projects as an investment in their daily well-being – a way to unwind right at home after a day of Zoom calls or to simply get some fresh air without leaving the premises.

Sustainability Focus

Another driving factor is the growing focus on sustainability and eco-friendly living. Homeowners aren’t just looking to make their yards prettier; they also want them greener in every sense. This means choosing materials and designs that are kind to the environment. Many folks are opting for composite decking made from recycled plastics, solar-powered garden lights, drought-tolerant landscaping, and other sustainable choices. Eco-conscious consumers take pride in improvements that reduce maintenance and environmental impact, and they often seek out contractors who can offer these options.

Survey data underscores this priority: 68% of homeowners planning outdoor projects prefer to use eco-friendly materials. This sustainability angle matters not only to homeowners personally, but it can also future-proof their investment (for example, composite decks won’t rot and will last for decades). For contractors, being knowledgeable about green building products and practices – and highlighting that expertise – can be a major selling point. The backyard trend isn’t just about luxury; it’s about creating a feel-good space that aligns with the homeowner’s values of health and environmental responsibility.

Property Value Enhancement

Beyond lifestyle and environmental considerations, there’s a practical financial reason behind the backyard retreat craze: it can boost property value. 

Attractive outdoor improvements make a home more appealing to buyers and can yield a strong return on investment. Homeowners increasingly recognize that money put into a great backyard isn’t money wasted – it’s adding to their home’s equity. A well-designed deck, a pergola with climbing vines, or a built-in fire pit area can set a listing apart in a competitive real estate market. Even relatively simple upgrades like fresh landscaping can have an outsized effect.

According to experts, landscaping can increase a home’s resale value by 15–20% on average. That’s a remarkable bump for something that also brings enjoyment in the meantime. In the same vein, features like outdoor lighting not only extend the use of the space but also add curb appeal after dark (some studies say quality outdoor lighting can add up to 12% to the home value). For medium and large home improvement contractors, emphasizing this value-add aspect can help convince clients on the fence – it’s easier for a homeowner to justify a $15,000 patio if they know it could pay back when they sell the house.

 In summary, the backyard retreat trend matters not just for what it does for lifestyle, but also for the tangible benefits of sustainability and property value. It’s a win-win for homeowners, which is why the trend has real staying power.

Opportunities for Contractors

The rise in demand for personal backyard retreats means big opportunities for contractors, especially those in the home improvement business. Homeowners are actively looking for professionals to design and build these outdoor escapes. Medium to large contracting firms that can tap into this trend will likely see their order books fill up. Here are a few key ways contractors can capitalize on the backyard retreat wave:

Offering Customized Solutions: One-size-fits-all doesn’t cut it when clients are aiming for a personalized haven. Homeowners want their outdoor spaces to reflect their lifestyle and personality – whether that’s a rustic stone fire pit for family s’mores nights, a sleek modern patio for cocktail parties, or a zen garden corner to practice yoga. Contractors should be ready to tailor designs to individual preferences, rather than pushing generic templates. This might involve spending more time in the consultation phase to truly understand the client’s vision and how they intend to use the space. The payoff is a delighted customer who feels their new deck or pergola is uniquely theirs.

By offering customized solutions, contractors can set themselves apart from the competition. It’s also an opportunity to upsell special features (built-in seating, custom lighting schemes, water features, etc.) that fit the client’s goals. The more a homeowner feels you “get” their dream, the more likely they are to trust you with the project, and refer you to friends. In today’s market, contractor financing isn’t the only way to win business; sometimes it’s as simple as flexing your creative design skills to deliver a one-of-a-kind result.

Promoting Sustainable Options: As noted, a huge segment of homeowners are prioritizing sustainability in their home improvements. This means contractors who can promote eco-friendly options have a strong selling angle. Don’t wait for the client to ask – bring sustainable ideas to the table yourself. For example, you might suggest composite decking or recycled pavers, point out energy-efficient outdoor lighting systems, or incorporate native plants that need less water. Many clients will appreciate the initiative and expertise. Remember, 68% of homeowners undertaking backyard projects want eco-friendly materials, so being well-versed in “green” products can directly meet that demand. 

It’s not just about materials either; consider the construction process – minimizing waste, recycling old concrete or wood, and properly planning to avoid unnecessary environmental impact can all be selling points if you explain them. Marketing yourself as a sustainable or environmentally conscious contractor (backed up by real actions and options in your proposals) can attract customers who care about their carbon footprint. 

Additionally, some eco-friendly upgrades come with long-term savings (like lower maintenance or energy costs), which you can highlight to make the value proposition even stronger. In essence, offering sustainable solutions is a win-win: it differentiates your services and aligns you with the values of today’s homeowners.

Providing Flexible Financing: Perhaps the biggest hurdle for homeowners dreaming of a backyard overhaul is the price tag. With the average outdoor project expected to cost over $13,000, many customers will be cautious about spending that much in one go. This is where savvy contractors can truly stand out – by providing customer financing solutions that make projects more affordable. 

Contractors who offer payment plans or easy financing options give clients the ability to say “yes” to a project now rather than delaying or downsizing it. In fact, offering financing can directly increase your sales. Industry research shows that when contractors provide financing, close rates can increase by around 18%, and project sizes (the overall amount of the sale) can jump by 30% on average. Think about that – simply by giving your customer a way to pay over time, you not only win more jobs but often end up doing larger jobs than you would have otherwise.

Homeowners often opt for more upgrades or higher-end materials when they know they can spread out the cost in monthly payments. If you’ve ever wondered how to offer financing to your customers for construction or remodeling work, the good news is that there are tools and partners out there to help. Dedicated home improvement lenders for contractors (essentially financing companies that partner with contractors) can handle the heavy lifting – from credit checks to loan approvals – so you can focus on the project itself. 

By teaming up with a customer financing software for contractors, even a mid-sized contractor can present financing options just like the big companies do. The bottom line: flexible financing removes a major barrier for customers and opens the door to more business. Contractors who embrace it are likely to close more deals and build a reputation for being customer-friendly. In an economy where not everyone has cash on hand, offering financing might be the X-factor that sets your home improvement business apart.

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How FinMkt Can Help

As contractors look to leverage the backyard retreat trend, having the right financing tools in place is crucial. This is where FinMkt comes in. FinMkt offers a multi-lender, point-of-sale financing platform designed specifically for contractors and home improvement businesses. In simple terms, FinMkt provides a way for contractors to offer instant financing options to their customers through a single, easy-to-use system. Instead of dealing with one bank or sending homeowners off to find loans on their own, a contractor using FinMkt can connect clients with a network of lenders in real time. (The platform provides real-time financing offers across the credit spectrum, meaning whether a customer has excellent credit or is more of a subprime borrower, they can likely find an offer that works for them.) By integrating FinMkt into your sales process, you effectively add a “finance department” to your business without the overhead – the software handles the loan shopping and approval process behind the scenes.

Using a platform like FinMkt yields several key benefits for contractors in the home improvement space:

• Increase Sales: Offering financing at the point of sale can dramatically improve your close rate and even the size of your projects. When homeowners see a convenient monthly payment instead of a daunting lump sum, they are more inclined to proceed with the full scope of work. FinMkt’s multi-lender approach often leads to higher approval rates (with multiple lenders competing to fund the project) and better terms for your customers.
  In fact, multi-lender financing strategies have been shown to improve approval rates by 30% or more in some cases, which directly translates to more projects moving forward. By using FinMkt – one of the best home improvement financing solutions for contractors – you won’t lose a sale just because one lender said no. There’s a greater chance you’ll be able to say “Yes, you’re approved” to your customer, which means you get the job. More approvals and larger jobs ultimately boost your revenue.
  
  
• Enhance Customer Experience: Today’s homeowners expect convenience. FinMkt helps you deliver just that by making the financing process fast and customer-friendly. Clients can apply for financing and see multiple loan offers on the spot, whether you’re sitting with them at the kitchen table or they’re reviewing an estimate online. This immediate, transparent process takes the stress out of figuring out “how will I pay for this project?” For the customer, it feels like a seamless part of the home improvement experience, not a separate hurdle.
  By providing a financing option through FinMkt, you’re essentially giving your clients a VIP service – they don’t have to hunt for a personal loan or rack up credit card debt at high interest. Instead, they get competitive offers from dedicated home improvement finance companies integrated right into the contractor’s workflow. A smoother financing experience means happier customers, and happy customers are more likely to recommend your services. In short, customer financing for contractors via FinMkt can significantly improve client satisfaction and trust, because you’re helping them solve the payment piece easily and responsibly.
  
  
• Streamline Operations: For contractors, time is money. Chasing down payments, managing paperwork for different lenders, or dealing with loan applications can be a major administrative headache. FinMkt’s platform streamlines all of that. It serves as a customer financing software for contractors, consolidating the financing process in one digital hub. The system handles everything from the credit application to matching the client with lenders, and it does so in a compliant and efficient manner. By having multiple financing options through one platform, you eliminate the need to maintain separate partnerships with various banks or credit providers. FinMkt also offers tools to track progress and manage loans, reducing the back-and-forth for your team. The result is less time spent on paperwork and more time available to focus on actual project work and customer service. The platform can be customized or even white-labeled to fit into your existing sales process, making adoption straightforward. By streamlining the financing aspect, contractors can operate more efficiently and take on more projects without getting bogged down in administrative details.
  
  

In conclusion, the backyard retreat trend of 2025 is an exciting wave that home improvement contractors would be wise to catch. Americans are pouring resources into creating personalized outdoor havens – from fire-lit gathering spaces to eco-friendly garden escapes – and they need skilled professionals to make those dreams a reality. By recognizing why this trend is happening (lifestyle changes, sustainability, and adding value) and adjusting your services accordingly (custom designs, green options, and flexible financing), your contracting business can thrive. 

Tools like FinMkt make it easier to offer the best contractor financing for customers right at the point of sale, helping you close more deals and delight homeowners with the backyard of their dreams. Embrace this trend and equip your business to serve it, and 2025 could be a year of significant growth and satisfied clients for your home improvement company.

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Sources:

1. Talker Research survey data on 2025 outdoor living trends.
   
2. Average planned spending and eco-friendly material preference for backyard projects.
   
3. Increase in time spent outdoors and planned hours per week (2024 vs 2025).
   
4. Impact of landscaping and outdoor improvements on home resale value.
   
5. Benefits of offering financing – higher close rates and larger project sizes.
   
6. FinMkt platform features and multi-lender financing advantages.

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