There’s a new ‘third space’ in town, and it’s right outside your house. According to a new survey from Rocket Mortgage, the backyard is becoming the preferred third space of most Americans, especially Gen Z, as a way for homeowners to expand their entertaining space and relaxation areas.

While the term ‘third space’ was originally meant to describe a communal gathering space outside of the home or workplace—encapsulating malls, parks, coffee shops, and community centers—homeowners are becoming more interested in having a designated third space near their home. This is where the backyard comes in—a space that’s technically outside of the home, but not far from it.

Homebuyers Yearn for A Backyard

Rocket Mortgage’s survey found that 73% of Americans say their home absolutely has to have a backyard. For 71% of Americans, having a patio, deck, or outdoor seating area is absolutely non-negotiable.

Meanwhile, these numbers shoot even higher for Gen Z Americans. 87% of them would be willing to pay extra for a house with a yard, while 86% would pay more for a dedicated outdoor entertaining space.

“Our research at Rocket shows younger buyers are putting a real premium on outdoor space, with Gen Z the most willing to pay more for a backyard they love,” said Sarah Tarraf, senior vice president of knowledge and data insights and inspiration at Rocket Mortgage. “For a generation that has grown up online, the backyard offers something increasingly valuable: space to host, garden, unwind and disconnect. The ‘touch grass’ instinct is showing up in what Gen Z values in a home.”

Turning Your Backyard Into That Coveted Third Space

Giving your yard a ‘third space’ makeover is a flexible concept. Maybe you prefer that it’s exclusively designed for you and your family, or perhaps you want to give it a layout that’s welcoming to your neighbors and community members, too.

As Rocket Mortgage points out, an outdoor hosting and seating area is a must. You can create a clearly defined seating space by positioning outdoor couches, chairs, and ottomans in an open horseshoe shape, so conversation flows easily. Consider utilizing flexible furniture that’s lightweight and easy to move, so that the space can easily be adjusted to accommodate more people. Pieces like storage ottomans, long benches, and side tables that double as seats can help you fit more guests in a flash.

For the outdoor host, you don’t need a full outdoor kitchen to bring the heart of your home to your backyard. A small grilling space can be a fun add-on if you have the room; otherwise, opt for a dining table and an outdoor buffet table for serving food and drinks.

Making your yard more comfortable to relax in is another important element. Outdoor blankets, cozy string lights, a patio umbrella for extra shade, and a movable outdoor privacy screen can help turn your yard into a space you can truly unwind in.

According to A New Survey : Gen Z is Willing to Pay More for This Home Feature by Sophia Beams | Better Homes & Gardens