How Much Does it Cost to Build a Deck

Adding a backyard deck or patio to a home is a popular home improvement project. The first step is to decide if a deck or a patio is right for you and your home. If you choose to go with a deck, then this is the article for you! A deck extends the living space of a home and provides an outdoor area for relaxing, dining, and entertaining. Plus, a deck may add value to your home and improve your home’s appeal. Building a backyard deck is no easy task. It’s quite a big project and it can require a lot of money, materials, labor, time, and adequate space in your backyard. The first step in the process is to evaluate your home renovation budget and estimate the cost of building your new deck.

The Cost of Building a Deck

On average, homeowners spend around $30 to $60 per square foot when building a deck. The average full cost of a new deck runs homeowners an average of about $8,000. The biggest factor in figuring out the price of a new deck is the size you’d like your deck to be. Let’s say you’d like a smaller deck. The cost to build a 12x12 backyard deck could range in price from $2,700 to $9,900. Why the big price range? It comes down to the material you’ll be using and your area’s cost of living, something we’ll get into later!

Finally, you’ll need to factor in the labor cost to build a deck per square foot. Building a deck by yourself, or with some friends and family, will save you a good chunk of money. Otherwise, you’ll be shelling out $8 to $27 per square foot on labor, depending on local labor rates and the complexity of your deck’s design. Labor can account for 50% to 70% of the total cost of your deck building project. Not everyone is handy enough or has the time to build a deck without hiring a contractor. Understandably, some are simply not willing to take on such a big project on their own. With others, their budget may steer them towards taking on the challenge without contractors if they like it or not.

How Much Do Deck Materials Cost

The most popular deck materials are pressure-treated wood, composite decking, cedar/redwood, and PVC decking. The cost of deck construction is different around the country because each material’s cost varies depending on location and situation. Each material has its own advantages and disadvantages that should be considered.

• Pressure-treated wood

  • Average Price: $15 to $25 per square foot.
  • Advantages: Lowest in cost and very durable. The wood is treated with a chemical mixture that protects it from rotting and insects.
  • Disadvantages: It can change color, crack, and warp because of how sensitive it is to the sun. Also, the treatment of the wood is not 100% effective.

• Composite decking

  • Average Price: $30 to $45 per square foot.
  • Advantages: This material is more durable than pressure-treated wood and requires less maintenance.
  • Disadvantages: Composite decking can “move around.” It has a high rate of expansion and contraction due to the temperature, which may cause warping.

• Cedar or Redwood

  • Average Price: $25 to $40 per square foot.
  • Advantages: Both are strong and durable wood material, which is great for the outdoors. They are both rot and insect resistant, but redwood is of higher quality.
  • Disadvantages: Can be more difficult to seal or paint due to natural oils of the wood. The wood can darken over time and each material is expensive.

• PVC Decking

  • Average Price: $40 to $70 per square foot.
  • Advantages: This material is synthetic, and the most resistant to all the issues that wood decks face, like rotting, cracking, warping, insects, and peeling. It’s also very low maintenance because it’s a type of plastic. It’s also lightweight, making it easier to install.
  • Disadvantages: Cost is the main downside to PVC decking. It can also become hot to the touch from sun exposure. PVC decking is the least environmentally friendly option.

Apply For an Installment Loan

All About Deck Financing

There are various deck financing options available. You should weigh your options and choose the one that is most suitable for you and your current financial situation.

Personal Savings

If you saved up the funds for a deck then it may be beneficial to use your savings for an upfront payment and avoid interest. A great way to save up for a big project is to use the 50/30/20 budget rule. This helpful budget rule provides a simple guideline for managing your finances. It suggests allocating 50% of your income to needs (like housing and groceries), 30% to wants (like entertainment, dining out, or a new deck), and 20% to savings and debt repayment. This approach helps balance spending and ensures you're prioritizing both your current lifestyle and financial goals.

Home Equity Loans or Lines of Credit (HELOC)

Home equity financing allows homeowners to borrow against the equity they have built up in their home, which is the difference between the home's current market value and the outstanding mortgage balance. There are two main types: a Home Equity Loan, which provides a lump sum at a fixed interest rate, and a Home Equity Line of Credit (HELOC), which acts like a credit line with variable interest rates.

Using home equity financing to build a deck can be the right move because, if approved, it typically offers lower interest rates, and the interest may be tax-deductible if the loan is used for home improvements. Alternatively, a HELOC offers flexibility, allowing you to borrow only what you need and when you need it.

Like with most things in life, there are risks involved. Since your home is used as collateral, failure to repay the loan could result in foreclosure. The application process can also be lengthy and may involve closing costs or fees. Home equity financing is best suited for homeowners with a lot of equity in their home who are confident in their ability to repay the loan over time.

Personal Installment Loans

An installment loan is a type of financing where a borrower receives a lump sum of money upfront and agrees to repay it in fixed monthly payments over a set period, typically with a fixed interest rate. This type of loan is commonly used for home improvement projects – such as building a new deck. The loan amount, interest rate, and repayment term are determined based on various requisites like the borrower’s credit score, income, financial history, and the lender’s policies.

Financing a deck with an installment loan can be a good idea because it offers predictable payments, making it easier to budget for the project. The fixed interest rate ensures that your monthly payment remains consistent throughout the loan term. Installment loans are unsecured, meaning you don’t have to put your home or other assets at risk as collateral. If an installment loan sounds like the right option for you, then apply today with our simple and secure online application.

Credit Cards

Credit card financing involves using a credit card to pay for the materials and/or labor needed to build a new deck. This method can be convenient, especially if you already have a credit card with a large enough credit limit. Some homeowners choose this option because it offers access to funds right away without the need for a formal loan application or approval process. If your card offers rewards, then there’s an added bonus to using your card to finance your deck.

However, there are significant drawbacks to using a credit card for such a large project. Credit cards typically carry much higher interest rates compared to other financing options, like home equity loans or personal loans. If you can’t pay off the balance when it’s due, the interest charges can accumulate rapidly, making your deck much more expensive overall. It would be a better idea to use your credit card on just part of the project, like building materials, especially if you’ll be building the deck without a contractor.

Contractor Financing

Contractor financing allows homeowners to finance a new deck directly through the contractor or a financing partner the contractor works with. Contractors may offer various payment plans, including no-interest or low-interest promotions for a set period, making it a good option for those who want to spread out the cost without dealing with high fees.

Keep in mind that the interest rates after the promotional period can be significantly higher than other financing options, and the terms might be less flexible. The financing options provided by the contractor might be limited to a specific lender, which might not offer the best terms compared to what you could find on your own. It's important to shop around and compare your options.