How to transform your patio into an outdoor living room without breaking the bank

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.

The warm and sunny weather of spring and summer makes spending time outdoors that much more appealing. If you’ve been thinking of adding patio furniture to your front porch or backyard, you’ve probably already realized that it’s an investment. But with the right options, you can transform your patio on any budget while reaping numerous benefits down the line, such as increasing your home’s usable square footage. 

Instead of unwinding in front of the television or smartphone screen after a long day, new patio furniture allows you to head outside to enjoy the breeze. Breathing in this fresh air while getting your daily dose of vitamin D from basking in the sunshine can improve your physical health and emotional well-being just with a simple switch of location. However, the most impressive thing about creating this upgraded patio space is the return on investment. Building the patio itself is estimated to have a return on investment of over 100%, but refurbishing an existing patio by repairing cracks and adding furnishings is less expensive and can have an investment return of up to 500%. 

Rather than just having a bare patio or a couple of mismatched lawn chairs sitting out, consider creating an outdoor living room, which adds to the usable square footage of your home, giving you more options for lounging and entertaining guests. 

When investing in these outdoor pieces, the bigger retailers like Amazon, Walmart, Target, and Wayfair will have the most budget-friendly price points, and you’ll find that there are endless options on the market. To help you with decision overload, we’ve found selections for creating an outdoor living room that won’t break the bank, including a variety of patio furniture sets and decor that offer a balance of style, quality, and affordability. 

Patio furniture sets for small spaces

You might be under the impression you need a large layout to execute an outdoor living space, but that’s not the case. All you need is room for two chairs, so even those with a cramped condo porch or tiny apartment balcony can create a serene escape into nature. These smaller patio furniture sets, usually comprised of two or three pieces, are also the best bargain, with the most budget-friendly options being available for $100 or less

These space-saving patio sets might be more compact, but they still offer a stylish, elevated look while adding comfort that’s far better than a metal folding chair. Opting for this route allows homeowners and renters alike to maximize their living space without making home renovations or massive investments in expensive furniture. Plus, some of these smaller sets are made out of quality materials made to last. Although most will be made of composite wood or high-density polyethylene, you’ll find some are made from real wood or feature durable steel frames to increase longevity. Just because they are budget-conscious picks doesn’t mean they can’t last several seasons. A lot of them can last for several years if taken care of properly. And if you want to ensure longevity, consider investing in patio furniture covers or moving them to a shed during the off-season. 

These smaller sets might not be ideal for filling large patios or backyard hangout areas, but they are great for creating a cozy nook to catch up with a friend, flip through a magazine, or sip your morning cup of coffee. The downside of a smaller set is obviously the fact that they can’t seat a lot of people. Your seating capacity is limited to two or maybe three people if you’re lucky, so keep that in mind if you plan to do a lot of entertaining. 

Logyat 3-Piece Wicker Patio Bistro Set

Best Choice Products 3-Piece Outdoor Wicker Bistro Set

Patio furniture sets for larger spaces

Sectional sofas, chaise lounge chairs, and conversation sets are more popular for larger backyards, and although not totally necessary, are best placed under a covered porch or deck. Due to the increased size and seating, these patio furniture selections come with a higher price tag, with prices starting around $150 at the lowest and going well beyond that. But for anyone looking to truly make their outdoor space look and feel like a living room, the investment is well worth it. Plus, it’ll likely make you want to spend more time using it since there are several occasions in which you’d want to lounge outside. They’re great for entertaining guests, sunbathing, taking a nap, or even making for a relaxing spot to read or work remotely. 

The larger the space, the more room to create a wow factor, for a space you won’t want to leave. If you happen to have an Airbnb or vacation rental, these outdoor living rooms can set your listing apart and add extra appeal for potential guests. 

Depending on how much you want to invest in the patio furniture pieces, there are a lot of factors to consider. The most affordable options will be made with polyethylene, a synthetic material that’s designed for weather resistance and longevity. If you want natural materials, like real wood or rattan, these will typically be more expensive, while also requiring more maintenance to keep them looking fresh, but with routine care, they can be used for years. 

The majority of these patio seating options will come ready with custom cushions. While nearly all of these will be made with water-resistant material that’s easy to clean, some offer even more convenience with removable covers that can be thrown into the washing machine. This means when a rainstorm strikes or your plate of barbecue spills, you don’t have to worry about being left with dingy fabric. Additionally, those in windy climates will also want to consider options with cushions that attach directly to the furniture, otherwise they may be blown away.

Aiho Outdoor Patio Sectional Set

Costway 4-Piece Patio Conversation Set

Latitude Run 6-Piece All-Weather Outdoor Rattan Patio Sofa Set

Outdoor Lighting and Decor

It’s the little touches that turn a regular patio setup into an outdoor living room. Patio furniture by itself can look unpolished out in the open without anything tying it together, but by creating a perimeter, it gives more of that indoor living room vibe. The simplest way to put up a border around the space is with an outdoor rug on the ground or by hanging string lights from above. These additions can also make the space feel more inviting and cozy. These details might not seem like a necessity, but they actually do add more functionality to the space aside from the appealing looks. 

After all, the best decor also adds functionality to your space. An outdoor rug can provide cushioning and a softer feel for your bare feet compared to a concrete or wood plank ground. Depending on where the sun sits in the sky, an umbrella can keep you comfortably shaded, while installing lighting means you can keep the party going even after it sets. 

Unlike wall-mounted lighting or lights hardwired to the home’s facade, string lights don’t take much effort to set up, especially since many come with hooks built into each light socket. You can also go years without replacing the bulbs, as most use long-lasting LED bulbs. Many also come in solar-powered versions these days, so you don’t even have to pay extra on your electric bill to run them. Potentially the most appealing thing about this lighting option is that string lights also lend a luxe look, often seen at boutique hotels or trendy restaurants with patio seating, which you can now channel at your own home.

Addlon Solar String Lights

Smiry Waterproof Outdoor Rug

Better Homes & Gardens Outdoor Scallop Patio Umbrella

Should you add an outdoor living room to your patio space?

The short answer is yes. While patio furniture can put you back a few hundred dollars, the value of this additional living space is priceless. By taking advantage of this previously unutilized area, you’ll now have an extra room for sprawling out to read a book, watch the wildlife, or catch up with guests.

These additions to your patio setup will not only give you a bonus room you’ll want to use throughout the sunny seasons, but they also allow you to get out and enjoy nature, which can have a positive impact on your physical and mental health. If you’re staging your home for a rental or to sell, this upgrade can also increase the appeal of your property in the long run.