If you’re considering upgrading your outdoor space in and around Sioux Falls, South Dakota, you’ve probably asked:
“Which project adds the most value— a deck, a fence, or a pergola?”
The honest answer?
All three can add value. But the better question might be:
Which one will you actually use and enjoy the most?
At Babb Custom Deck & Fence, we help homeowners think beyond resale and focus on long-term satisfaction—while still being smart about return on investment.
The Bigger Picture: Outdoor Living Is in Demand
Across the Midwest, outdoor living spaces continue to grow in popularity. Buyers increasingly look for:
- Usable backyard space
- Defined entertaining areas
- Privacy
- Low-maintenance upgrades
Well-built outdoor features don’t just look good—they signal that the home has been cared for.
That said, value depends heavily on:
- Quality of construction
- Material choices
- How well the project fits the home
- Neighborhood expectations
Let’s break down each option.
1. Decks: The Most Versatile Value Add
Pros
- Expands usable living space
- Highly functional for entertaining
- Strong buyer appeal
- Works well in Sioux Falls’ seasonal climate
- Integrates with outdoor kitchens and pergolas
Cons
- Higher upfront investment than a fence
- Requires maintenance depending on materials
- Must be built correctly for freeze–thaw cycles
Return on Investment
National remodeling reports often show homeowners recouping 60–75% of the cost of a new deck at resale, depending on materials and market conditions.
In many Sioux Falls neighborhoods, a well-built deck is considered almost expected—especially on newer homes.

2. Fences: Privacy, Security, and Practical Appeal
Pros
- Adds privacy and security
- Ideal for pets and children
- Defines property boundaries
- Typically lower cost than a deck
Cons
- Less of an “entertaining” feature
- Style preferences vary widely
- Some buyers may prefer open yards
Return on Investment
Fences typically recoup 50–70% of their cost, but the real value often comes from lifestyle benefits—especially for families with children or pets.
In Sioux Falls neighborhoods where privacy is limited, a quality cedar or modern horizontal fence can make a significant difference in buyer appeal.

3. Pergolas: Aesthetic and Lifestyle Upgrade
Pros
- Defines outdoor space
- Enhances architectural appeal
- Creates partial shade
- Elevates the look of an existing deck
Cons
- Less functional alone without a deck or patio
- Doesn’t provide full weather protection
- More of a lifestyle enhancement than necessity
Return on Investment
Pergolas typically recoup 50–70% of their cost. However, when paired with a deck, they often increase perceived value more than as a standalone feature.
They create what buyers see as a “destination space”—a backyard that feels intentional and designed.

So… Which Adds the Most Value?
From a strictly financial standpoint:
- Decks often deliver the strongest resale impact.
- Fences provide practical, family-oriented value.
- Pergolas enhance aesthetic and lifestyle appeal.
But here’s what matters most:
Don’t add something because you think someone else will like it.
Add something because you will enjoy using it.
If you install a deck you’ll use for 10 years of family gatherings, holidays, and everyday evenings outside—that value goes far beyond resale percentages.
Personal Enjoyment Should Lead the Decision
Outdoor upgrades should enhance how you live now.
Ask yourself:
- Do you entertain often? → A deck (possibly with a pergola) may be ideal.
- Do you value privacy and security? → A fence may bring daily peace of mind.
- Do you want architectural definition and shade? → A pergola may elevate your space.
Trying to predict what a future buyer may want can lead to choices that don’t serve your lifestyle today.
Quality Matters More Than Category
A poorly built deck adds less value than a well-built fence.
A cheap pergola adds less appeal than a thoughtfully designed deck.
In Sioux Falls, harsh winters and freeze–thaw cycles expose shortcuts quickly. Materials and craftsmanship matter.
At Babb Custom Deck & Fence, we focus on:
- Structural integrity
- Code compliance
- Clean, even aesthetics
- Quality materials built for Midwest durability
Value isn’t just about what you build—it’s about how well it’s built.
The Bottom Line
All three—deck, fence, or pergola—can add value to your home. Outdoor living continues to grow in popularity, and buyers appreciate usable backyard space.
But the best investment is the one you’ll enjoy.
If you’re considering upgrading your outdoor space in the Sioux Falls area, we’d be happy to walk through your goals, property layout, and long-term plans.
Schedule a consultation with Babb Custom Deck & Fence and let’s build something you’ll enjoy now—and feel confident about later.