What is the ROI on a Pool?

Installing a swimming pool is a great way to cool down in the summer, providing your family with hours of outdoor fun. But how will installing a new pool impact the value of your home? The ROI on a pool can range from 5% to 56%, but most homeowners only average about 7%, according to Curbio. This results in an ROI of about $245 for an above ground pool and up to $36,700 for an inground pool. 

The reason behind the wild jump is quite simple—there are significant differences in quality, aesthetics, and materials between above ground and inground pools. Additionally, in most of the country, pools cannot be used year-round, which hinders their resale value. But does that mean you should skip the pool altogether? 

Factors That Influence Pool ROI Value

With a range of 5% to 56% ROI on pools, it’s no wonder that several factors influence the return value. Some factors are obvious, but others are more obscure. 

Location

It’s no secret that pools are popular in some states—Florida, California, and Texas are the top three states with the highest number of pools. Along the same lines, pools aren’t so popular in colder states like Wyoming and South Dakota. So, what does this mean for your ROI on a pool? 

Simply put, you’ll see a larger ROI on a pool in states where people want pools, which happens to be states where warm weather is abundant or where places to swim are scarce. This doesn’t mean states that experience cold winters don’t want pools, but they are not as popular (or necessary). 

Pool Type

While both an above ground and inground pool serve the same basic purpose, they are not created equal. The average cost of an above ground pool is $3,500, whereas the average cost of an inground pool is $65,500. That is a huge difference, which is why the ROI on a pool can vary so dramatically from 5% to 56%. You’re more likely to see a higher ROI on an inground pool over an above ground pool, partly due to the favored aesthetic and the fact that it is a more permanent structure.

Pool Size

Even though inground pools often net higher ROIs than their above ground counterparts, it’s not always a guarantee. A smaller pool will almost always net a smaller ROI than a robust option with a deck, specialty lighting, or waterfalls. The downside to this is that larger pools with several add-ons will net a heftier price tag, so you’ll need to decide if that is worth the potential return. 

Pool Condition 

You could have all of the above conditions met—you could live in a warm climate and have a large inground pool—but if the pool is in poor condition, your ROI will be on the lower end of the estimate. Homebuyers don’t want to spend significantly to redo or “fix up” a pool—it should be move-in ready to be used. Things like outdated or broken equipment, algae problems, or worn liners will all impact your pool’s condition.  

DIY vs. Hiring a Pro

While it is possible to DIY some pool installations, it’s not easy and is certainly not recommended unless you have extensive experience. Pool installations require specific prep work that can lead to pool collapse if done incorrectly. Even the slightest misstep could negatively impact your pool's ROI. This is a job best left to a local pool installation expert. 

Buyer Market

Not every homebuyer will want a pool in their backyard, regardless of type or size. A pool takes up a lot of yard space, not to mention a pool requires a lot of maintenance. Some instances where homebuyers might not be jumping at the chance to buy a home with a pool include:

• Accessibility considerations

• Family structure, as pools pose significant safety risks for small children

• Owning pets that require outdoor space

• Preexisting time commitments that take time away from enjoying the pool or pool maintenance 

• Lack of outright desire or need to have a pool 

Pool Maintenance Costs 

The cost of installing the pool is just one cost factor to consider when thinking about your ROI for this project. Pools come with maintenance costs—chemical balancing, cleaning, added electricity charges, and opening/closing the pool (depending on your location) are all part of keeping your pool in pristine condition to net the most significant ROI. All in all, you can expect to spend anywhere from $400 to $1,000 or more per year on the cost of pool maintenance, depending on the size of your pool. 

How to Estimate the Added Value of a Pool

Estimating the ROI on a pool addition isn’t a simple formula—several factors play a part in the equation and are not all weighted equally. To help determine the added value of a pool installation to your home, consider the following: 

1. Look at your neighborhood. Do other homes in the neighborhood have pools? If not, installing a pool might not do much for your ROI. Similarly, in a neighborhood with abundant pools, having a pool might help increase your chances of making a sale.

2. Consider the buyers in the area. Who is primarily interested in moving into the neighborhood? Families with small children or pets might shy away from pools due to their safety risk. 

3. Look at your weather. Do you live in a climate where you can swim year-round? If so, that will help increase your ROI potential. 

4. Take size and materials into account. The best way to get the biggest ROI on this project is to have a large pool made with top-end materials, but this can come at a high installation cost. 

5. Get appraised. You can hire a property appraiser to assess your home's current value and estimate the potential value increase with a new pool. 

Cost to Install a Pool

As we touched on earlier, the cost to install a pool can vary dramatically depending on the type of pool and materials you choose. For example:

• The cost of an above ground pool ranges from $1,100 to $6,100 on average

• The cost of an inground pool ranges from $44,400 to $86,900 on average

• The cost of a spool (also called a plunge pool) averages around $22,650

• The cost of a fiberglass pool can range from $25,100 to $46,300 for most homeowners

• The cost of a lap pool can range from $6,000 to $80,000 

Because the ROI on a pool can be as low as 5% (or less) or as high as 56% (in exceptional circumstances), you won’t recoup much of your up front installation costs. For example, if you spend $3,500 to install an above ground pool, you might see an ROI of about $175. However, if you pay the average of $65,500 for an inground pool, you could see an ROI of up to 56%, or about $36,700, but you should expect closer to a 5% ROI of about $3,300. 

Is a Pool Worth It?

If you are considering installing a pool, banking on its ROI is not the best strategy. Given the price point and variable ROI rates, you should consider installing a pool only to enjoy its benefits, not to increase your property value. In fact, depending on your region and circumstances, installing a pool can actually hurt your chances of selling in the future. 

That said, a pool is a great way to stay cool outdoors in the summer and get full-body exercise. A pool can help you and your family bond and is ideal for hosting backyard events during nicer months. If you’re planning on staying in your home for years to come and want the benefits that a pool brings, it’s worth installing it for your use. This is definitely a project where you should go for it if it fits your fancy, but don’t bank on it to be a deal winner in the future. 

How Angi Gets Its ROI Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners maximize the value of their investments, we gather ROI data from reputable sources, including industry reports, real estate studies, and interviews with market experts. We calculate the average resale value for projects by multiplying the ROI against the project’s average cost according to our cost data, which is sourced from thousands of real Angi customers. 

Want to help us improve our data? Send us a recent project quote or home appraisal value to costquotes@angi.com. Quotes and personal information will not be shared publicly.