Does a Pool Add Value to Your Home? In L.A. the average bump is $95K
The Value of Pools to Home Prices Varies by Location
had The history of Los Angeles’ love of cars is only matched by the love affair L.A. has with swimming pools. Here, summers are warm and sunny, winters are mild with no risk to pool water freezing. Southern Californians love to live an indoor-outdoor lifestyle where backyards are used to entertain, and are as used as any living room or kitchen.
A recent study analyzed 26,000 properties sold in the L.A. metropolitan area last year. And the study found that homes with a pool sold for an average of $95,393 more than similar homes without pools. Of the 20 metro areas analyzed in the study, L.A. had the highest bump in value from a pool by far. The OC (Orange County) came in second, where pools added $55,885 on average to a home’s selling value. In third place was Austin, Texas, at $52,228.
Our weather makes all the difference. In southern California, pools almost never freeze in the winter, and summer is not as hot as Phoenix or as humid as Miami in the summer.
Phoenix was found to value a pool in a home sale that placed it a surprising second-to-last on the list. Pools in the Valley of the Sun added only an average of $11,591 to a home’s value at sales time. Ranking at the very bottom is Boston, a city with brutal winters. Here homes with pools actually sold for $15,484 less than homes without them.
The affluence of cities like L.A. also plays a key role. The thinking is that if you can afford a multimillion-dollar house, you can probably swallow the cost of a pool. In contrast, less wealthy homeowners elsewhere may find it undesirable or even impossible to afford the cleaning, repair and water bills, which can quickly come to hundreds of dollars monthly.
That explains why in Los Angeles there is a much higher premium placed on homes with a pool than other California cities. Riverside pools add $44,750 to a home’s value; Oakland pools add $29,487; Sacramento pools add $20,616; and San Diego pools add $20,001.
Public pools often take the place of private in less expensive cities, but that’s not an area where Los Angeles excels. There are 1.18 million pools in California, according to Metrostudy, but L.A. has fewer public pools per 100,000 residents than cities such as Cleveland, Pittsburgh, Atlanta, Omaha, New Orleans, Orlando and Denver.
Of the 26,000 L.A.-area homes surveyed, about 6,000 homes or about 23% had pools. That number may be rising in the future given that about 60% of San Fernando Valley home buyers consider a pool a priority.
“Many of my clients live far from the ocean, and without much access to public pools, there aren’t many places to swim unless you have your own,” Katz said.
She recently listed an Encino home for $1.5 million, but because its backyard was too small for a pool, she lost potential buyers.
“At that price point, a pool’s not required, but it’s definitely expected,” she said.
Matt Barash, president of custom pool-building company Coastal Aquatic Creations, said he’s selling more pools than ever.
He’s been with the company since its genesis in 1994 and said sales have been steady, but last year was its best. This year is off to a promising start as well, with business booming on the Westside in Venice, Mar Vista, Westchester, Cheviot Hills and Beverlywood.
However, he’d be surprised if the average pool really resulted in a nearly six-digit jump in a home’s value.
Most projects take six to twelve weeks, with cost ranging from $50,000 to $70,000. He’s installed eye-catchers that cost half a million, but his business strategy right now is to focus on volume.
“Everything’s being torn down and rebuilt by developers,” he said. “Adding a pool is usually part of those renovations.”
Clean-line pools are the rage at the moment. Rectangular and minimalist, they pair well with the Cape Cods and modern farmhouses popping up across the city.
Don’t forget the spas; at this point, Barash estimates that 90% of pools include a hot tub.
When consulting with families, he said that few view a pool as an investment opportunity. Overwhelmingly, his clients are parents hoping a cool backyard will be a catalyst for keeping their kids at home. If it nets a few more offers when they sell down the road, all the better.
