How should I replace lawn in my back yard, with pebbles or mulch?
which is cheaper to use initially and cheaper and easier to maintain? Also would like a path and garden beds.
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mulch will be cheaper but you could do a combo would would look neat. Cost will depend on the area you plan to cover. I've got a gravel calculator that may help.
always less expensive to order by the truckload than by bags.
https://www.gardenupgreen.com/2017/09/calculate-gravel-for-delivery.html
Here's a peak at my garden space, it may give you some ideas
https://www.gardenupgreen.com/2018/10/creating-a-new-garden-space.html
Before choosing between mulch and stone...if you live in a condo or area with landscaping rules, check what the rules might be, especially if you have a mowing service. Stone gets caught in mower blades and thrown at high velocity into windows, cars, and siding.
Stone is a pain in the butt, natural materials get in it (leaves, plants, grass) and it is hard to clean. Then it looks sloppy and the weeds grow in it anyways.
If you have trees that will be dropping leaves and branches just stick with grass. Mulch and stone are both hard to maintain with trees around. Also, I would not want mulch up against the foundation of my house due to possible termite infestation.
A 1" layer of mulch over a 40' x 12' area runs nearly $1000, in this area of the country. Considering most mulch should be 4" in depth and needs replaced every few years (or sooner, in event of heavy downpours) the cost of mulch applied by others is becoming cost prohibitive. If you're physically capable of doing it yourself, it may be more feasible to install mulch, but you'll still be stuck with removing leaves and twigs/pinecones, raking to fluff it and remove fungal growth, etc.
I put in 5/8" minus gravel from front to back of house on both sides between concrete curbing. We only have a small grass area in back (dog's poop area). Front and side yard is all rock (about 2") with a few trees and flowers - drip irrigation at each plant. The remainder of back yard is all bark mulch. It holds water for plants and doesn't get hot like rocks. It is also easy to walk on.
Call in a Garden Designer and tell them your requirements and they will be able to help you.