One of the great things about owning a home of your own is your ability to add to it. You can create a space that is at once welcoming in the here and now and bound to increase in value in the future. None of those things are possible with an apartment, condo, or other rented home. In these cases, you are relegated to renting while someone else reaps the reward. What’s more, creative restrictions are placed on you in terms of what you can and cannot do to the property.
After all, it isn’t “yours.”
However, when you own a home, you get to take ownership of every inch of it (including any shed space that you may choose to add). Installing a shed in your backyard can be highly convenient. It can help give you some extra storage space for tools and possessions. If you outfit it with windows and amenities, it can be transformed into an outdoor space in which to entertain guests.
But do storage sheds actually increase property value?
I’ll be brief in case you’re in a hurry — Yes, storage sheds can boost your property values slightly, but usually not for more than the cost of the shed itself. However, if you are selling your home, having a storage shed makes it more likely that a potential home buyer will choose your home.
Folks are buying (and storing) more junk now than they ever have. As a result, the self-storage industry is booming. From Forbes:
As baby boomers begin to downsize, the need for storage units is predicted to increase. Additionally, while some believe millennials will use storage less than previous generations, data from Marcus & Millichap’s “2018 U.S. Self Storage Investment Forecast” suggests they will continue the demand trend as they still, although slightly later in life, are forming families and accumulating material possessions.
If a potential buyer needs storage space, then they will be more likely to think of your storage shed as a major benefit. It may not drastically increase the price of your home, but it will provide a great incentive for folks to pick your house over others.
The Case Against Buying A Shed
However, let’s play devil’s advocate for a moment.
For one thing, the question of whether sheds can add to your property’s value ignores the cost of constructing them in the first place. The price of constructing a shed can be a few thousand dollars (on up to $10,000+ for high end options).
Is it really worth it to spend this much to put a shed on your property? Probably not, if you don’t personally need the storage space. While they do add value, and will provide buyers an incentive to pick your house over others, there are usually better things for you to spend your hard-earned money on.
Furthermore, most home sheds tend to be small and built atop the foundations rather than into the foundations themselves as a full-on, large-scale structure built to last. It is the latter point that helps make your home valuable. After all, “mobile” homes that are the size of small one-story homes yet not built into the foundations themselves actually lose value over time.
The same may be true of sheds.
Storage sheds are great. I have one myself and it provides an immense amount of utility while also being a perfect fixture in my yard. But I got a shed because I needed a shed, not because I thought it would increase my property value. If you have a lot of things to store, or would like somewhere dry to keep your tools, a shed is a perfect choice.
If you’d like to increase your property value (and only that), you might look elsewhere.