If you’re thinking about adding a swimming pool to your backyard, then you’re probably not looking at it strictly as a financial investment. You buy stocks and bonds and silver when you’re trying to gain an economic advantage. You buy a pool when you want endless hours of summer leisure, surrounded by happy friends and family at your own private little oasis.

But swimming pools aren’t exactly handed out for free, which does make you rightly wonder whether buying one adds value to your home. Can you expect to make money by adding a pool to your property? Is it more realistic to expect a fraction of your initial investment back at closing? Or is a pool more of a break-even kind of investment – or worse yet, no investment at all?

The truth lies in the middle. You would never invest in a backyard pool if you were only trying to maximize your return on investment (ROI). But the money you invest into a pool will come back to you – partially – if you ever decide to sell your house.

How Much of an ROI Can You Expect From Your Pool?

Homes with pools don’t appeal to certain types of buyers. Parents of small children and owners of small pets often regard pools as nothing more than safety hazards, and don’t relish the thought of owning them. Many other people have no intention of ever using a pool, and don’t want a home with a feature they’ll wind up either maintaining, neglecting or removing.

In other words, if you list a home with a pool sale, you’re automatically turning away a significant percentage of available homebuyers. Fortunately, they are a minority. Homebuyer interest in swimming pools skyrocketed in 2020 for reasons that don’t beg explanation, and it steadily increases to this day. In Irvine, CA, where starter homes cost over $1 million, homes with pools can sell for $50,000 to $100,000 more than those without.

More realistically, you can expect your swimming pool to retain 15–25% of your original investment. That means if you spend $20,000 building the pool, $3,000–$5,000 will come back to you when you sell your house – and that’s not adjusting for inflation.

How Much Does a Pool Increase Your Home Value?

Typically, a swimming pool increases a home’s market value by approximately 5–8%.

Several factors determine whether a pool will provide a lower or higher boost to your home value. Pools are in greater demand in warmer states: more than 40% of pools in the United States are in California and Florida alone. Pools also compel homebuyers to pay higher prices when they are (A) well constructed, and (B) properly maintained.

You can’t relocate your home to a hotter state where people justify paying more for pools. But if you’re really trying to squeeze the most value out of your pool from an investment standpoint, your choices still make a big difference. Hire a reputable pool contractor that takes pride in delivering sterling results, and a pool maintenance technician that will keep your pool’s deck, liner, filter, pump, motor, and water all in peak condition. These pros will add percentage points to your pool ROI someday!

If you live in the greater Sioux Falls, SD area, you can hire both of those pros as soon as you contact Paradise Patio, Pool & Spa. Our team is standing by to ensure your pool provides as much value as possible: not just economically, but as an investment in your quality of life as well!