Swimming pools have long been a symbol of luxury and leisure in the American backyard. But beyond the joy they bring to homeowners, pools are also a major investment—one that begs the question: Where is the return on a pool? In this comprehensive article, we explore the financial implications of installing a swimming pool, examining the factors that influence return on investment (ROI), the regional variations, and the alternative returns that extend beyond pure monetary gain.
Understanding ROI for Home Pools: Basic Concepts
When discussing the return on investment for a swimming pool, it’s essential to define what ROI means in real estate. ROI is calculated by dividing the net profit or loss from an investment by the initial cost, typically expressed as a percentage. In real estate terms, ROI for a pool is often about how much value a pool adds to a home when it’s sold. However, ROI isn’t always purely monetary—increased enjoyment and lifestyle enhancement also factor in.
The investment in a pool can range from $30,000 to well over $100,000, depending on the type (in-ground vs. above-ground), materials used (concrete, fiberglass, vinyl), and additional features (heating, slide, spa). But recouping that investment upon sale isn’t guaranteed and hinges on several variables.
What Percentage of Pool Costs Are Recouped at Resale?
According to Remodeling Magazine’s annual Cost vs. Value Report, a pool may not always translate to a direct dollar-for-dollar gain at resale. In many markets, homeowners can expect to recoup about 50–80% of their pool investment, depending on the region and local buyer preferences. For example, a pool that costs $50,000 might only add about $25,000–$40,000 in perceived value during a home sale.
However, these estimates vary widely. Some markets that place a high value on outdoor living and luxury amenities—such as Southern California, Arizona, and parts of Florida—have a higher recoupment rate. Meanwhile, colder climates with shorter outdoor seasons may see little to no return in resale value.
Geographic and Market Influence on Pool Returns
Where you live has a dramatic impact on whether installing a pool makes long-term financial sense. In regions where pool ownership is standard or highly desirable, the likelihood of recovering your investment is significantly higher.
High-ROI Pool Markets
In warm-weather markets, outdoor living plays a central role in homebuyer priorities. Homes in the following regions typically enjoy a stronger return on pools:
- Southern California: Pools can increase home value by up to 7–8%.
- Phoenix, Arizona: A pool is considered a standard feature in many neighborhoods.
- Texas Metroplex (Dallas-Fort Worth): Strong demand in suburban communities where outdoor entertaining is common.
- South Florida: Especially in cities like Miami and Tampa, where access to beaches and pool culture are well-established.
Low-ROI Pool Markets
In colder climates, or in neighborhoods with minimal pool ownership, a swimming pool may not only provide less return but could even deter buyers due to the maintenance burden. Examples include:
- Minneapolis, Minnesota
- Detroit, Michigan
- Upstate New York
In these areas, potential buyers might view a pool as an added expense, considering seasonal maintenance, winterization costs, and insurance implications. Some may even want to remove the pool entirely, further reducing its financial benefit to the seller.
Factors That Determine ROI: Why Some Pools Return More Than Others
Not all pools are created equal. The type of pool, surrounding hardscaping, design features, and even aesthetics can dramatically influence how much a pool contributes to home value.
Pool Type and Construction Costs
| Pool Type | Average Cost | Estimated Recoupment Rate |
|———–|————–|—————————-|
| In-ground Concrete | $50,000–$100,000 | 40–60% |
| Vinyl Liner In-ground | $35,000–$65,000 | 50–70% |
| Fiberglass In-ground | $45,000–$85,000 | 50–75% |
| Above-ground | $15,000–$35,000 | 20–40% |
| Infinity Pool | $85,000–$150,000+ | 30–50% |
Concrete pools, while durable and customizable, are the most costly. They offer aesthetic appeal but may not yield the best ROI if the surrounding property doesn’t justify the luxury. Fiberglass and vinyl liner pools, on the other hand, offer a more cost-effective solution with better resale appeal in mid-tier neighborhoods.
Surrounding Property and Outdoor Amenities
A pool alone does not create ROI. If not integrated well into the backyard’s overall design, standalone pools may even reduce curb appeal. However, those that are part of a cohesive outdoor living space—including patios, seating areas, built-in kitchens, fire pits, and landscaping—tend to deliver higher returns. In particular, properties designed for entertaining see an added premium from pools and associated features.
Pools and Target Buyer Demographics
The demographic profile of homebuyers in a given area plays a critical role in determining ROI. Families appreciate a safe, clean pool for kids to enjoy, while entertainers and retirees favor pools as part of an active lifestyle. Conversely, single professionals or budget-minded buyers may not value pools if they lack the time or resources to maintain them.
Key Insight: The best ROI is seen in neighborhoods where the addition of a pool aligns with buyer expectations and current listing trends.
Alternative Returns: Lifestyle Benefits Cannot Be Ignored
While monetary ROI is often a focus for property investments, it’s important not to overlook intangible returns. A swimming pool offers returns that are experiential and emotional—an aspect many homeowners consider invaluable.
Health and Wellness Benefits
Regular swimming improves cardiovascular health, muscle tone, and mental wellbeing. In communities with limited public pools or recreational facilities, a private pool can serve as a home gym all year round, particularly when equipped with a resistance swim system.
Home Value in “For Rent” Scenarios
If you’re investing in a home with plans to rent it out—either short-term vacation rentals or long-term leases—having a pool significantly boosts rental income. According to AirDNA data, homes with pools listed on rental platforms like Airbnb can earn an average of $150–$300 extra per night, depending on location.
Entertainment and Social Returns
A backyard pool allows homeowners to host gatherings, create family memories, and serve as a community hub. In neighborhoods where social cohesion is high, having a pool can elevate your home’s role within local circles—an emotional ROI that goes beyond the real estate value.
The Hidden Costs That Impact ROI
Understanding the total cost involved in installing and maintaining a pool is crucial for calculating a true and accurate ROI. Often, homeowners don’t budget beyond the initial construction, missing ongoing expenses that can detract from the investment’s effectiveness.
Installation Costs Beyond the Pool Kit
| Expense Category | Estimated Extra Cost |
|——————|———————–|
| Permits and Fees | $500–$5,000 |
| Landscaping | $3,000–$15,000 |
| Fencing and Safety Equipment | $2,000–$10,000 |
| Pool Equipment (Pumps, Heaters, Filters) | $3,000–$8,000 |
| Legal Compliance Features | $1,000–$5,000 |
| Excavation and Grading | $2,000–$7,000 |
A complete installation can cost anywhere from 1.2 to 2 times the base price of the pool itself. These add-ons must be factored into any calculation of “returns” to ensure realistic value expectations.
Ongoing Maintenance and Utilities
According to Pool & Spa News, the average pool owner spends between $1,200 and $4,000 annually on:
- Water treatment and chemicals
- Electricity for pumps and filters
- Water fill-up and testing
- Professional cleaning and winterization
These ongoing costs reduce the effective ROI, particularly if the pool sees limited use.
Increased Insurance and Tax Burden
Adding a pool usually increases homeowners insurance premiums due to liability risks. Moreover, some counties reassess property values post-installation, which may result in higher taxes. These recurring costs can impact the real financial benefit of a pool over time.
When Pools Are a Detractor: Factors That Can Lower ROI
Despite their appeal in warm climates, pools can actually deter potential buyers in certain situations.
Aging and Neglected Pools
An outdated pool, especially one with cracked tiles or aging equipment, can be perceived as a liability. Aging concrete pools, for instance, may require resurfacing for as much as $4,000–$10,000. Failure to make such updates often results in lower home offer prices or even request for concessions to cover necessary repairs.
Liability and Safety Concerns
Potential buyers with young children, or no children at all, sometimes avoid homes with pools due to the safety implications. Additionally, insurance providers and municipalities may impose additional legal requirements—like new fencing, alarms, and covers—which further weigh on the pool owner.
Property Layout and Space Limitations
A poorly placed pool can reduce backyard usability, encroach on lawn space, or cause noise issues (e.g., pumps near windows). These pitfalls not only affect daily life but can also hurt the perceived value of the home in comparison to similar listings without such features.
Maximizing Your Return on a Pool Investment
Despite potential drawbacks, pools can offer worthwhile returns when installed thoughtfully and marketed appropriately. Below are actionable strategies to help you maximize your pool investment.
Timing Your Installation Strategically
Install a pool when you have the financial stability to hold the property for several years. Given that ROI typically plays out over time, selling shortly after installation may not recoup enough to justify the cost.
Staging the Pool for Showings
A clean, well-maintained pool increases buyer appeal. Ensure perfect water clarity, clean surroundings, and perhaps even include lounge chairs in staging photos. Buyers want to see an inviting space, not a potential headache.
Marketing the Pool Wisely
Listings that highlight key selling points—like saltwater systems, smart pool equipment, or energy-efficient heaters—can justify higher resale prices. Good photography of the pool area, especially during golden hour lighting, also enhances its perceived value.
Consider Smarter Alternatives in Some Markets
For cooler regions or investment properties, consider alternatives such as:
- Removable or portable spas.
- Outdoor kitchens without a pool.
- Adding community pool access through strata fees.
These alternatives offer some of the lifestyle appeal of a pool at a fraction of the cost and maintenance burden.
Conclusion: Understanding the True Value of a Pool
So, where is the return on a pool? It depends. If you live in a warm-weather market with high buyer expectations, a well-designed pool can recoup 50–80% of its cost upon resale and deliver lifestyle benefits that far outstrip the numbers. In contrast, in colder regions, particularly with high maintenance costs and limited usage, a pool may not deliver strong financial returns—though it may still bring personal joy and wellness value.
Ultimately, smart pool ROI hinges on a balance between location, timing, property context, and lifestyle alignment. Do your homework, understand your neighborhood, and ensure that a pool is a thoughtful addition rather than an impulsive luxury. With planning, it can be one of the most rewarding parts of your home—not just a place to swim, but an investment that keeps giving in more ways than one.
Do swimming pools increase home value?
Yes, swimming pools can increase home value, but the extent of the increase depends on various factors such as location, local climate, and buyer preferences. In regions where warm weather is common year-round, like in parts of California or Florida, a well-maintained pool can be a desirable feature that adds value. However, in colder climates, the added value may be minimal or even nonexistent, as not all buyers are willing to take on the added costs of maintenance and upkeep.
Additionally, the return on investment (ROI) for a swimming pool typically ranges between 50% and 100% depending on the market and how luxurious the installation is. Homes with high-end pools that are integrated into landscape designs or include features like waterfalls, spas, or automatic covers tend to appeal to upscale buyers. However, the presence of a pool might also narrow the buyer pool, particularly if potential buyers have children or pets and are concerned about safety or liability.
How much does a swimming pool typically cost to install?
The installation cost of a swimming pool varies widely based on the type, size, materials, and location. On average, in-ground pools can range from $30,000 to over $100,000, depending on whether they are constructed from concrete, fiberglass, or vinyl. Custom designs with added features such as heating systems, lighting, automatic covers, and surrounding decking will typically push the costs higher, while above-ground pools are a more budget-friendly option, costing between $1,500 and $30,000 on average.
Geography also plays a significant role in the final cost, as labor and material prices differ by region. Pools in areas with high labor costs or difficult terrain will be more expensive to install. Additionally, homeowners may need to budget for ongoing expenses such as permits, utility upgrades, and landscaping. While the initial cost of installation can be substantial, homeowners should consider how these expenses align with their long-term real estate goals and lifestyle preferences.
Are there ongoing maintenance costs for a swimming pool?
Yes, swimming pools require regular maintenance, and the ongoing costs can range from $1,000 to $5,000 annually depending on the size and type of pool. These costs typically include chemicals for water treatment, electricity for pumps and heaters, cleaning services, and periodic repairs. In some cases, homeowners may also need to replace pool equipment, such as filters or liners, which can add significant expenses every few years.
Moreover, maintenance demands a time commitment, even if a professional service is hired, as homeowners must monitor the pool’s condition, especially during heavy usage periods or in harsh weather. These costs and efforts can deter potential buyers or renters from viewing a pool as a benefit. Therefore, homeowners should assess whether the lifestyle benefits of owning a pool justify the recurring expenses involved in maintaining it adequately.
Can a pool improve rental income potential?
Having a pool can indeed make a property more attractive to renters, particularly for vacation rentals or seasonal tenants. In desirable locations such as resort areas or popular tourist destinations, properties with pools often command significantly higher nightly rental rates. This premium can lead to a noticeable boost in rental income, especially during peak travel months when demand for premium amenities is high.
For long-term residential rentals, the impact may be less dramatic, but still notable. A pool can differentiate a property in competitive markets and allow landlords to target higher-earning tenants or families seeking a premium lifestyle. However, it’s important to factor in the added insurance, maintenance, and liability risks that accompany a pool. Properly managed, the investment can pay off, but landlords should be prepared to handle additional responsibilities that come with such a feature.
Does a pool influence the time a home spends on the market?
The effect of a pool on the time a home spends on the market is not universal—it depends largely on the buyer demographic and market conditions. In some cases, a pool can make a house stand out and generate more interest, especially in warmer climates or luxury markets. A well-maintained, aesthetically pleasing pool may attract buyers seeking a resort-style living experience and shorten the time to sale.
Conversely, in other markets, potential buyers may view the pool as a liability due to maintenance costs, safety concerns, or increased insurance premiums. This can cause hesitation and potentially lengthen the time a property is on the market, especially if buyers must adjust their financing or insurance plans. Sellers should consider staging the pool area to highlight its appeal and consult with real estate professionals to determine how to market a home with a pool most effectively.
Are there tax benefits or considerations when installing a pool?
Installing a swimming pool typically does not offer direct tax deductions for residential homeowners, unless the pool is used for medical purposes as prescribed by a doctor. In that case, some costs may qualify as medical expenses, potentially offering tax relief. However, for typical recreational use, the installation cost becomes part of the home’s basis for capital gains purposes, meaning homeowners may be able to account for the improvement when calculating their taxable gain upon sale.
Additionally, if the home is used as a rental or vacation property, some pool-related expenses, such as maintenance, repairs, and utilities, may be deductible as business expenses. It’s important for homeowners to keep accurate records and consult with a tax professional to understand how pool costs can be treated on their returns. While tax benefits are not a primary reason to install a pool, being informed can help homeowners make smarter financial decisions in the long run.
What factors should homeowners consider before investing in a pool?
Before deciding to install a pool, homeowners should carefully evaluate their goals, lifestyle preferences, and long-term real estate plans. Key considerations include the intended use of the pool—whether for personal enjoyment, rental value, or as a selling point—along with the family’s interest in having a pool. It’s important to also assess whether existing space, zoning laws, and property layout allow for a quality pool installation without sacrificing usable outdoor space.
Further, a full cost-benefit analysis should be conducted, factoring in installation costs, ongoing maintenance, insurance changes, and potential resale impact. Homeowners should also research local market trends to determine whether a pool adds value in their area and consult with real estate professionals for advice. Ultimately, the decision should be a calculated investment that aligns with both personal enjoyment and financial objectives.