Does A Pool Help Or Hurt Your Home Value?
Prior to 2020, a backyard swimming pool did not consistently add value to a home or do much to entice buyers. However, when the global pandemic kept people in their homes for weeks or months on end, people were more than eager to add a swimming pool to their backyard. But even as the pandemic ended and life returned to normal, the demand for swimming pools continued. In 2023, the demand remains high. But does the demand translate into an increase in home value? That depends largely on a few key factors. These factors include: the type of pool you install, location, local housing market, and property details.
Type Of Pool
There are two types of pools available to homeowners: above-ground and in-ground. An above-ground pool is considered a temporary structure with a framing, lining, and walls. The cost to put up an above-ground pool is generally less expensive than an in-ground pool and ranges from $800 to $5,000. While this pool is inexpensive to install, it generally will not be included in your appraisal since it is a temporary structure.
Installing an in-ground pool requires far more preparation and monetary investment. This major construction project begins with excavating your property and then installing a permanent concrete, fiberglass, or vinyl structure. In-ground pools can range in size and shape but are typically 20 by 40 feet with a depth of six feet and can be rectangle, square, round, kidney, L-shape, and oval. The average cost to install an in-ground pool is anywhere from $18,000 to upwards of $50,000.
Where you live is just as important as the type of pool you install when it comes to an increase in your home’s value. Some examples of locations that might increase the value of your pool are:
- High-end neighborhoods: If every home on the block has a pool except you, the value of your home will be negatively impacted
- Hot and humid climates: Pools are popular in areas where they will get use on a regular basis
- Area where buyer demand is high: Areas where the housing market is still booming
Adding a swimming pool to your backyard will take up a significant amount of space when you consider walking around the pool, seating area, fencing, and space for pool supplies. If your pool takes up over half of your backyard it may turn off buyers who are interested in a backyard that is more than just a swimming hole. If you have ample space and do add a pool, you should make safety your main priority. One of the best ways to increase the value of your swimming pool is to install a fence around it. Not only does this make the swimming pool more visibly appealing, it also makes the area safer especially for children.
The Bottom Line
If your swimming pool is in-ground and well maintained it can increase your home value, especially if you live in an area where swimming pools are popular. Prior to COVID a home with a pool could fetch approximately $16,000 more than a house without one. In 2022, that amount rose to over $27,000. With the demand still high you could see a higher sales price with a pool, however that is not a guarantee. If you are going to install a swimming pool, do it because your family will enjoy it rather than for the possibility of an increase in home value.