The Real ROI of Landscape Lighting: What the Data Says for Homeowners

What the Data Says About Value

One of the most comprehensive pieces of research on home upgrades comes from the National Association of REALTORS® (NAR).

According to their 2023 Remodeling Impact Report, landscape lighting shows this estimate:

• Average project cost: $6,800

• Estimated value recouped at resale: $4,000

• Cost recovery: ~59%

In simple terms: if you invest $6,800 in a well-designed exterior lighting system, the average resale benefit may be around $4,000.

But this number doesn’t tell the whole story — it’s just one part of the picture.

Why This Figure Isn’t the Only Measure of ROI

The NAR data gives us a useful baseline, but landscape lighting also provides value that isn’t easily measured in resale numbers alone.

1. Boosted Buyer Interest

According to the same report:

• 92% of REALTORS recommend improving curb appeal before selling

• 97–98% agree that strong curb appeal significantly influences buyers

Lighting plays a big role in curb appeal — especially in listings shown at dusk or photographed for online browsing.

2. Buyers Actually Want Exterior Lighting

In the 2021 “What Home Buyers Really Want” study by the National Association of Home Builders (NAHB), exterior lighting ranked as one of the most desired features among prospective buyers — on par with spaces like a dedicated laundry room.

That means lighting isn’t just nice to have — it’s something buyers are actively looking for.

Understanding “Tangible” vs. “Intangible” Value

We can think about ROI in three layers:

1. Direct Resale Value

This is what the NAR report estimates — the value a buyer might add to their offer because lighting is already in place.

Typical takeaway:

• Roughly 59% cost recovery is normal for lighting alone.

That may sound modest compared to interior renovations like kitchens, but lighting isn’t meant to replace those — it complements them.

2. Marketability and Buyer Appeal

Lighting can influence buyer behavior even if it doesn’t directly increase the sale price by the full project cost.

More appealing photos, better first impressions at showings, and a stronger sense of home safety can help listings attract more offers or sell more quickly.

3. Daily Life Value

This is often overlooked but very real:

• Safer foot traffic after dark

• Longer usable outdoor hours

• Enhanced enjoyment of patios and landscapes

These benefits don’t show up on a spreadsheet, but they do improve your quality of life.

Lighting Often Amplifies Landscaping & Architecture

Research from the American Society of Landscape Architects (ASLA) shows that professionally designed landscapes alone can boost home value by 15–20% compared to average yards.

While lighting isn’t landscaping, it extends visibility and impact — especially at dusk and night, when most buyers see the home.

That means lighting doesn’t just add value on its own — it helps magnify the value of other investments in your property.

What This Means for You

If you’re considering lighting primarily as a financial investment:

✔️ Expect measurable resale value, but don’t treat it like a guarantee
✔️ Use lighting to enhance curb appeal and buyer perception
✔️ Consider how you personally use and enjoy your home — because that value matters too

Professional lighting isn’t just decoration — it’s a functional upgrade that supports safety, usability, and market appeal.

Final Thoughts

Landscape lighting may not deliver the same headline ROI as a kitchen remodel — but it complements your home’s appeal in powerful ways.

• Improves visibility and safety

• Enhances photos and showings

• Is something buyers say they want

• Contributes to a stronger overall exterior presence

Taken together, lighting makes the home feel intentional and inviting — and that matters to both buyers and everyday living.

Sources

1. NAR Remodeling Impact Report – Outdoor Features (2023)
   https://cms.nar.realtor/sites/default/files/documents/2023-03-remodeling-impact-outdoor-features-03-17-2023.pdf

2. NAHB – What Home Buyers Really Want (2021)
   https://www.nahb.org/-/media/NAHB/news-and-economics/docs/housing-economics-plus/special-studies/2021/special-study-what-home-buyers-really-want-march-2021.pdf

3. ASLA – Residential Landscape Value
   https://www.asla.org/residentialinfo/1pager.html