In a city where outdoor space is scarce and highly coveted, having even a small private area can significantly elevate both your lifestyle and a property’s market appeal. Whether it’s a balcony with morning light or a landscaped terrace off the kitchen, outdoor space in New York City doesn’t just improve livability—it can meaningfully affect the price. But how much is it actually worth?
Outdoor Space Isn’t One-Size-Fits-All
Not all outdoor spaces are created equal. While a balcony might be enough for your morning coffee, a private roof deck with skyline views is something else entirely. And from a valuation standpoint, they’re treated very differently.
The short version: outdoor space is typically valued at 25% to 50% of the price per square foot of the interior space. That means if an apartment is going for $1,500 per square foot, a great terrace could add $750 per square foot of outdoor space to the overall value. But hitting the high end of that range depends on the layout, usability, and connection to the interior.
What Kind of Space Are We Talking About?
Here’s a quick guide to what adds more—or less—value when it comes to outdoor areas:
- Balconies
Usually small, often off a bedroom or living area. They’re nice to have, but rarely game changers. Think 25% valuation in most cases. - Low-Floor Patios
These offer more square footage, but less privacy. Street noise, shadows from buildings above, and debris can drag down the appeal. Often worth 30–35%. - Setback Terraces
These are the gold standard—especially when they’re spacious, square-shaped, and connected to a main living or dining space. Great for entertaining and daily use. Frequently valued at the full 50%. - Private Roof Decks
High on charm and views, lower on convenience. If there’s no direct access or you have to haul dinner up a staircase, that knocks things down to about 40%. Still, for the right buyer, it’s a major selling point.
Layout, Light, and Lifestyle Matter
Beyond the type of space, how it functions day-to-day makes a big difference. A beautifully landscaped terrace that’s integrated into your living space is going to appraise differently than a dark, oddly shaped space with a noisy AC unit.
You might increase value by 5–10% for standout features like:
- Thoughtful landscaping
- Irrigation systems
- Lighting
- Built-in seating or planters
And on the flip side, deductions of 5–10% can apply for:
- Narrow or impractical layouts
- Poor light exposure
- Noise or mechanical obstructions
- Limited access from the main living area
One important cap: Outdoor space should never be valued at more than 50% of the price per square foot of the apartment’s interior.
Crunching the Numbers
Let’s say you’re looking at a 2,000 square foot apartment at $1,500 per square foot, and it includes a 400 square foot setback terrace. If that terrace is well-designed and accessible from the living space, it could be valued at 50%.
Here’s the math:
Interior: 2,000 × $1,500 = $3,000,000
Outdoor: 400 × $1,500 × 0.50 = $300,000
Total estimated value: $3,300,000
Final Thought
Outdoor space can absolutely elevate a home’s appeal and market value—but the numbers aren’t always straightforward. It’s about more than square footage; it’s about experience, functionality, and how the space connects to the lifestyle buyers are looking for.
If you’re considering a purchase or listing and want to better understand how your outdoor space factors into the equation, we would be happy to walk through it with you. Every property is unique—and in NYC, every foot of fresh air counts.