The following blog post was written by Michelle McNally for Royal LePage – original blog here

June 29, 2026

The warm glow of an outdoor fireplace turns an ordinary patio into a destination. It creates a cozy, inviting atmosphere and gives off enough heat to take the bite out of cool evening air, letting you stretch your backyard season well past summer. With so many styles, materials, and fuel types on the market today, there’s an outdoor fireplace to suit nearly any space and budget. The challenge isn’t finding one; it’s choosing the right one.

This guide walks you through everything to consider before you buy: local rules, materials and fuel, realistic costs, and how to pick a safe, functional location.

Check the Rules Before You Buy

Before you fall in love with a particular model, find out what’s actually allowed where you live. Regulations vary significantly from one municipality to the next, and they often dictate both the type of fireplace and the fuel it can burn.

• Local bylaws. Many municipalities have strict rules governing outdoor fireplaces and the fuels they’re allowed to burn, and these vary widely from one community to the next. Check with your local municipality before purchasing so you don’t end up with a unit you can’t legally operate.
• Home insurance. Contact your insurance provider to confirm whether an outdoor fireplace affects your coverage and whether there are conditions you need to meet.
• Buried utility lines. Any project that disturbs the ground carries risk. Before you dig, contact your local utility locating service to find out if and where buried lines run through your yard.

A few phone calls upfront can save you from costly mistakes, fines, or safety hazards down the road.

Materials and Fuel Types

Outdoor fireplaces come in a range of materials, from sleek stainless steel to classic natural stone, so you can match the unit to your backyard’s style.

When it comes to fuel, your location largely decides your options:

• Propane or natural gas is the go-to choice for city dwellers. Both burn clean and efficiently, light instantly, and require little cleanup.
• Wood-burning fireplaces are usually only permitted in more rural or recreational areas, where regulations are looser and smoke is less of a concern for neighbours.

If a full outdoor fireplace isn’t in the cards, whether for budget or bylaw reasons, a chiminea can be a cost-effective alternative where regulations allow.

How Much Does an Outdoor Fireplace Cost?

The price of an outdoor fireplace varies widely depending on the type, materials, and whether you need professional installation.

• Wood-burning models are the easiest on your wallet, and you’ll even find DIY plans online if you’re handy.
• Propane or natural gas models cost more – expect to pay roughly $1,000 and up for a standard unit, plus labour for installation.
• Custom builds and luxury models sit at the top end. There’s no shortage of creativity online, and bespoke designs can run $25,000 or more.

A word on installation: labour costs vary by model type, so always ask about them before you buy. Two comparable units at a similar price can carry very different installation costs – a difference that could change which one makes sense for you.

If an outdoor fireplace is something you know you’ll enjoy, and it adds value to your home, the investment may be well worth it.

Choosing the Right Location

Safety should be top of mind when deciding where your fireplace will go. Before you settle on a spot, ask yourself:

• Is it well clear of fences and walls?
• Are there overhanging trees or branches nearby?
• Is there enough room around the unit for people to pass comfortably without crowding the flames?

Location is also about functionality. Picture how you’ll actually use the space. If you entertain often and need room for a dining table, make sure the fireplace enhances the layout rather than getting in the way.

Is an Outdoor Fireplace Worth It?

There’s a lot to weigh when planning an outdoor fireplace – regulations, fuel, cost, and placement all play a part. But for anyone looking to create a warm, welcoming atmosphere and add a little visual drama to their backyard, the payoff is real. Done right, an outdoor fireplace becomes the heart of your outdoor space for years to come.

Frequently Asked Questions

Are outdoor fireplaces allowed where I live? It depends on your municipality. Many communities have specific rules on the type of outdoor fireplace permitted and the fuel it can use. Always confirm the current bylaws with your local municipality before purchasing.

What’s the best fuel for a backyard fireplace in the city? Propane and natural gas are the most popular choices for urban backyards because they burn clean and efficiently. Wood-burning units are generally limited to rural or recreational areas.

How much should I budget for an outdoor fireplace? Wood-burning and DIY options are the most affordable. Standard propane or natural gas models typically start around $1,000 before installation, while custom builds can reach $25,000 or more.

What’s a cheaper alternative to a full outdoor fireplace? A chiminea is a budget-friendly option that still delivers warmth and ambiance, where local regulations permit it.