A great escape: Outdoor kitchens can pay off

A great escape: Outdoor kitchens can pay off

04.08.2025

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A great escape: Outdoor kitchens can pay off
A great escape: Outdoor kitchens can pay off

With the dawn of spring, the sun’s out, and the fun’s out(side).

Cooking outdoors can feed the needs of many: The majority of American households (70%) own at least a grill or smoker — up from 64% in 2019 — with nearly two in five owners (38%) having bought a new grill since early 2020.1 Supply aims to balance demand, with the market for outdoor kitchen appliances set to reach more than $15 billion by 2032.2

Across the U.S., inflation has been eating into food budgets, as the cost of food at home rose 1.9% in the previous year as of February 2025, compared to a 3.7% jump for food away from home, according to the Consumer Price Index.3 Some people have opted to put their dollars toward groceries rather than eating out: In February, people spent an average of $569 on groceries, compared to $764 at restaurants, according to Empower Personal DashboardTM data.

Yard duty

With Americans moving back to city hubs — 86.4% of the population now lives in metro areas — some people may want to make the most of limited outdoor space, and backyard kitchens can combine form and function.

Cooking at home has also helped people be more comfortable hosting events: In early 2024, online searches for “dinner parties” on invitation platform Evite rose 148% year-over-year.4 More meetups can bring joy across generations, with Empower research finding that six in 10 people (63%) “feel wealthy” if they have enough time to spend with family and friends.

During the current era of a tight housing market and people not wanting give up low-interest-rate mortgages, staying put has also sparked home makeovers. Spending on home renovations — which can include outdoor kitchens — is projected to reach a record $509 billion in 2025.

Read more: Renovation rebound: Home remodeling is on the rise

Putting in money now to build an outdoor kitchen can pay off down the line for selling a home or switching it to a rental property. The National Association of Realtors found that these projects retain 100% of their value.5

Interested cooks should keep in mind that adding value to a home could create unexpected tax considerations. At the point of sale, an outdoor kitchen could tip the scales and trigger the “mansion tax,” should the home’s overall value rise above certain local thresholds.

Customizing tastes

Building a simpler outdoor kitchen setup — including cabinetry, countertops, cooking and refrigeration appliances, plumbing, and flooring — can cost around $13,000 on average.6 But similar to indoor renovations, the sky’s the limit for add-ons.

Consider favorite everyday foods and big-party menus for potential upgrades like a meat smoker or pizza oven. Those looking for a convenient, all-in-one experience can add a dishwasher for quick cleaning, an awning to brave the elements, and a full lighting setup to cook into the evenings.

An outdoor kitchen’s heavy lifters — such as grills and fridges — got a price cut early this year, with the cost of appliances falling 3.1% year-over-year as of February CPI data. Snapping up bigger purchases could be wise, as appliance prices could shift with the arrival of tariffs. Dishes and flatware that can provide each meal’s finishing touch can also be a place to save, as prices have dropped 9.2%.

Read more: Inflation cools in February, but egg prices keep climbing

For those looking to get creative, backyard space can extend a home’s interior aesthetic or provide the chance try out a new look. One out-of-the-box outdoor kitchen option that’s set to debut this year offers modular pieces in a rainbow of colors.7

Savor the investment

With U.S. home equity levels doubling to $35 trillion during the past seven years, homeowners can have more wiggle room to put money into their homes.

Following the growing trend of aging in place, adding features like an outdoor kitchen to an existing space could serve people well into their golden years — providing room just a few steps away to get fresh air and socialize. Nearly two in five Americans (39%) say they’d be happiest retiring where they can be close to family and friends, according to Empower research.

Whether the goal is to upgrade a home or just spice up cookouts for years to come, outdoor kitchens can be an addition worth craving. 

Get financially happy

Put your money to work for life and play

1 Hearth, Patio & Barbecue Association, “2023 State of the Barbecue Industry,” March 2023.

2 GlobeNewswire, “Outdoor Kitchen Appliances Market Expected To Reach USD 15.85 Billion by 2032, Growing at 9.00% CAGR | GE Appliances, Lynx Grills, Fire Magic Grills,” January 2025.

3 Bureau of Labor Statistics, “Table 2. Consumer Price Index for All Urban Consumers (CPI-U): U. S. city average, by detailed expenditure category,” accessed April 2025.

4 Axios, “Millennials and Gen Zers are in their dinner party era,” March 2024.

5 Wall Street Journal, “This Is What a $37K Outdoor Kitchen Looks Like,” June 2024.

6 Wall Street Journal, “This Is What a $37K Outdoor Kitchen Looks Like,” June 2024.

7 Design Milk, “Size Doesn’t Matter With the Modular CUBE Outdoor Kitchen,” June 2024.

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The Currency editors

Staff contributors

The CurrencyTM, a publication from Empower, covers the latest financial news and views shaping how we live, work, and play. We keep you current on ways to plan, save, and invest for life.

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