From Planning to Completion: How Much Does It Cost to Build a Pool?

Since the start of the pandemic, many homeowners have put extra dollars into home improvements, staycations, and outdoor living amenities – including backyard swimming pools.

Adding a pool to your property can increase warm weather alfresco enjoyment and be a fun platform for hosting guests and parties. But there’s a major price tag involved. Which begs the question: How much does it cost to build a pool?

Before committing to this pricey project, read about the types of different swimming pools, associated costs, financing options, and the value one might add to your home.

In this article (Skip to...)

• How the pool frenzy started
• Pool types
• Pool cost factors
• Value added
• Cost of a pool
• Pool financing
• FAQs

Pandemic pool frenzy: How it started

Three years ago, as the world began to shut down due to the spread of coronavirus, plenty of homeowners sought to improve stay-at-home conditions and upgrades to their properties. One popular home improvement project that started trending was building a swimming pool in the yard.

“During the pandemic, the popularity of backyard swimming pools increased due to the desire for safe and convenient recreational activities at home,” says Nathan Sapio, marketing director for Discount Salt Pool in Waller, Texas. “With travel restrictions, closed public pools, and social distancing guidelines, homeowners have increasingly turned to building or installing pools.”

Redfin reported a surge in demand for homes with swimming pools after the pandemic started. During the first nine months of 2020, home listings mentioning a swimming pool increased by 43% compared to 2019. Also, residences with pools sold for an average of 26% more than homes without a pool.

However, Fixr.com reported last year that homeowner demand for adding a swimming pool waned; only 42% of homeowner respondents felt that adding a pool was at least somewhat important versus 59% who deemed it not important.

What are the main types of swimming pools?

Pools come in two basic types: inground or above-ground. Here’s how each of these options works.

Inground pools

“Inground pools are a permanent option made from the most durable materials to withstand the test of time,” explains Clay Spann, senior vice president of Merchandising for Phoenix-based Leslie’s.

They are built by digging a hole in the ground and then using a hard material to create a shell. The shells of inground pools are made from either concrete/shotcrete, gunite, fiberglass, or a combination of these materials and are often lined with vinyl.

“Concrete shell pools are the only ones that can be built in any shape, size, or depth, and are the most expensive. Fiberglass-shelled pools can be ordered in mainly rectangle and free-form shapes but are limited in sizes because the shells are pre-manufactured and shipped to the home. Vinyl-lined pools come in a variety of sizes, mainly rectangle-shaped, but there are some curved shapes available,” Dan Dougher, an expert with Above-groundpoolsknowitall.com, notes.

Above-ground pools

Above-ground pools are, as the name implies, built above the ground and typically come into types: hard-sided and soft-sided. The former are commonly made of steel, aluminum, or resin (brands include Doughboy and Wilbar) and can last for decades. Soft-sided pools, including inflatable/temporary types, aren’t as durable and have a shorter lifespan (brands include Intex and Coleman).

“Above-ground pools are commonly round-shaped, but many oval-shaped sizes are available,” adds Dougher. “Rectangle and radius-formed shapes are available but not very common.”

Note that equipment for above-ground pools is often smaller than for inground pools, especially if you purchase the equipment as part of an above-ground pool kit.

“Inground pools are a more permanent solution, largely because they use more durable PVC piping for plumbing, unlike the flexible plumbing often found with above-ground pool systems,” says Spann.

What influences the cost of installing a swimming pool?

Several factors can impact the cost to have a pool built and installed. These include the type of pool you choose, its size, the materials used, the cost of labor, and other installation expenses.

“Your landscape will also dictate what you pay. The topography and features of your surrounding yard can impact the cost of installing a pool,” Sapio says. “For example, if the area where the pool is being installed is on a slope, additional work may be required to level the ground, which can add to the overall cost.”

Furthermore, the type of water sanitation system you choose can also affect what you pay, adds Sapio. Opting for an ozone or UV sanitation system for your pool is likely the most expensive choice. Saltwater pools are often less expensive, but typically have a higher upfront cost than traditional chlorine pools (although the ongoing price of chemicals for saltwater pools may be lower than for a traditional chlorine pool).

“Additionally, states with greater environmental concerns and regulations, like California, will have a much higher cost in terms of materials, labor, engineering, and permitting,” Dougher cautions. “Areas of the country with many swimming pools installed, like Florida, will probably be less expensive to build a pool than areas where pools are less common.”

Does a pool add value to your home?

While every market and area is different, you can expect that adding a pool to your yard will increase the resale value of your home.

“Ways a pool can add value to your home include improved aesthetics, increased functionality – as the pool can provide a place for exercise, relaxation, and socializing – and a higher selling price,” says Sapio.

Just be aware that a pool can detract from your home’s worth if it is poorly maintained, cosmetically unappealing, located in a neighborhood where pools are not common or high in demand, or situated in a small yard where the pool dominates the space.

“An inground pool can probably add anywhere from 5% to 8% to the value of your property under the best circumstances. But keep in mind that this added value may fall short of the money required to construct and install the pool and fund the future upkeep necessary,” continues Spann.

Dougher says an above-ground pool may add no value to your home. But it can be more easily and cheaply removed when it’s time to list your home for sale if you choose this route.

Cost of a pool

So how much does it cost to build a pool? According to HomeAdvisor, the average expense to build/install a pool is over $36,400. Inground pools can set you back $20,000 to $100,000 more than an above-ground model, which may cost around $700 to $5,000.

“On average, the cost for an inground pool can range between $50,000 and $60,000 versus $1,000 to $5,000 for an above-ground pool. But the price will vary considerably depending on pool size, features, and finishing options,” says Spann.

Per Sapio, the additional expense to maintain a pool (including chemicals) is around $700 annually for a chlorine pool, $300 a year for a saltwater pool, $150 annually for a UV system pool, and $200 yearly for an ozone pool.

You also need to budget extra dollars for the cost of water to fill your pool (an average-sized pool is around 20,000 gallons) and unexpected repairs.

Ways to finance a swimming pool

Now that you know how much it costs to build a pool, there are several ways you can borrow money to pay for a swimming pool and installation cost. While each option has its pros and cons, popular means to pay for a new pool include:

• A personal loan
• Cash-out refinance
• Home equity loan
• Home equity line of credit
• Loan offered through the pool dealer

Personal loan

Often called a signature loan, a personal loan is a type of unsecured loan. With this kind of loan, you don’t need physical collateral—such as your home—to secure repayment. Instead, the lender commonly only requires your signature and pledge to repay the loan.

Thankfully, it is usually easy to qualify for a personal loan for a swimming pool. Even better, you might get the money within a matter of days. However, a personal loan is riskier for the lender. That’s because no collateral is needed. Consequently, they may charge a higher interest rate on a personal loan than they would for a secured loan like a home equity or auto loan.

Additionally, personal loans may put your credit score at risk. That’s true if you don’t pay back the loan on time or abide by the loan terms. If your credit score drops, it may be tougher to get other types of credit in the future.

Cash-out refinance

A cash-out refinance replaces your current home loan with a new, larger mortgage. The difference between your new loan amount and your old one is returned to you as cash back at closing. A cash-out refi allows you to tap the equity in your home and use it for any purpose, including purchasing a swimming pool. It’s a good way to access a large sum of money at a competitive interest rate.

Note, however, that cash-out refinance rates are slightly higher than traditional mortgage refinance rates. Your refinance rate will depend on your credit profile and how much cash you take out. You can usually cash out up to 80% of your home equity. Also, your new loan will be larger than your old one, so you’ll pay more in mortgage interest in the long run. But since mortgage rates tend to be lower than a personal loan or credit card rates, cash-out refinancing can be a better way to finance a significant transaction like a swimming pool.

Home equity loan

A home equity loan is a type of loan that permits you to borrow against your home’s cash value, often at a low fixed interest rate. Also called a “second mortgage,” a home equity loan is typically a smaller, second loan taken out in addition to your current mortgage. This enables you to tap your home’s value without changing the rate or terms on your primary mortgage. You can also take out a home equity loan if your home is fully paid off and borrow only the amount you want to cash out.

A home equity loan can be an enticing choice because it commonly offers a lower interest rate than other debt types, including personal loans and credit cards. Note, though, that since your home acts as collateral, missing loan payments could result in foreclosure.

Home equity line of credit (HELOC)

A home equity line of credit functions somewhat like a credit card. It’s a revolving line of credit that has a maximum spending limit. Whenever you need cash, you can draw on the line up to your credit limit. Your available credit replenishes as you pay down the balance (with interest).

However, you can only draw from the credit limit for a set amount of time (known as the “draw period”), after which time you can no longer borrow money and must repay the outstanding balance. Second, HELOCs are “secured loans” and use your home as collateral. In exchange, you may get a lower interest rate than you would for a personal loan or credit card, but there is the threat of foreclosure if you don’t make your loan payments.

Swimming pool loan through the dealer

Alternatively, the retailer or dealer you purchase a swimming pool from may offer in-house financing.

This can be a convenient one-stop-shop option. But the loan may come with higher interest rates than you can find elsewhere and more strict terms. Do your due diligence and pursue several financing options, comparing each carefully in terms of total loan costs, loan length, and other factors.

The bottom line on installing a pool

Weigh your options carefully before committing to financing a swimming pool purchase. This expensive transaction will likely require borrowing money you will be paying off for a while. Plus, prepare to foot the bill for ongoing maintenance and repair of your swimming pool, which can add up to hundreds if not thousands extra per year.

Think about the expected use of your pool over the years. Ask yourself how often family members will swim during seasons of operation. If you have children, they may stop hosting friends and enjoying the pool as they get older.

“An above-ground pool is probably a good starter option. It’s not permanent and has an attractive price point relative to inground pools,” suggests Spann.

Frequently asked questions

How much does it cost to build a pool?

HomeAdvisor reports that the average cost to construct/install a swimming pool is around $36,400. On average, above-ground pools can cost $1,000 to $5000, versus more than $20,000 to $100,000 for an inground pool.

Is adding a pool a good investment?

A pool can add years of enjoyment, recreation, exercise, and entertainment to your family’s lifestyle. It may also increase your home’s resale value, depending on the demand for pools in your area and the size, type, and materials used.

Is it cheaper to build a pool or buy a house with a pool?

The experts agree that purchasing a home with a pool already installed is much cheaper than building a new pool in your yard.

Do you need a permit to build a pool?

Most municipalities require a building permit and/or electric permit to construct a new swimming pool, whether it be an above-ground or inground type. Permit fees will vary depending on your location.

How much does pool maintenance cost?

According to Angi, on average, you should expect to budget between $110 and $351 a year to maintain your pool, including the chemicals needed. However, total upkeep – including unexpected repairs and water/electric costs, can range between $3,000 and $5,000 annually.