Here’s how a pool affects your home value

Owning a pool can be the cherry on top of the sundae of homeownership for many Americans. But is it a smart investment?

Conventionally, many real estate experts say that the amount of value a pool adds to your property doesn’t meet the cost of installing it in the first place.

The national average cost for installing a pool is $27,888, according to HomeAdvisor, which surveyed more than 1,600 members and has a very detailed pool cost guide. HomeAdvisor’s calculator even takes into account a given home’s location when estimating a cost.

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There are cheaper options, too. According to HomeAdvisor’s guide, building an above-ground pool costs between $1,500 and $15,000. A spa or hot tub can run between $3,500 and $15,000. Other options can be more expensive, like lap pools, which typically run between $40,000 and $60,000 with labor.

An average 14-by-28 in-ground pool is estimated to add between 5 and 8 percent to the value of a home, according to HGTV. Using HomeAdvisor’s national average cost, that would only mean a return investment on homes worth more than $557,000.

However, pools can be more valuable in hot-weather real estate markets. Last year, real estate firm Redfin analyzed how much of a premium a pool added to home values in different markets.

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Pools added the most to home values in Los Angeles, an average of more than $95,000, according to Redfin. Other warm areas were also high on the list, including Austin, Texas; Orange County, California; Riverside, California and Fort Lauderdale, Florida, in the top five.

Meanwhile, in chilly Boston, a pool actually detracted value, Redfin found. A home there with a pool was worth $15,000 less than a comparable home without a pool.

Most markets are probably more like Boston when it comes to pools. Homeowners usually just get back 43 percent of what they spent on a pool when selling, the National Association of Realtors has said.

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Keeping a pool is also more expensive than just the initial cost of installation. For an in-ground pool, it will cost between $500 and $4,000 per year for utilities and maintenance to run, according to HomeAdvisor. That cost is affected by factors like the size and whether or not the pool is heated.

Homeowners may also want – or need – to increase the liability portion of their homeowners' insurance policy, according to the Insurance Information Institute. The industry group recommends at least $300,000 to $500,000, or more, depending on a given pool owner’s circumstances.

Of course, if those costs save you from having to pay pricey membership fees at a pool or lake club, or help you take fewer vacations, it could still end up being a cheaper option.

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