As the pandemic forced Americans to spend more time at home, many turned to home improvement projects to enhance their living spaces. One popular choice was swimming pool installations, which experienced a surge in demand during the lockdown period. However, recent indicators suggest that this trend is starting to wane as households are now reallocating their discretionary spending towards experiences like vacations rather than home renovations.
Pool Corp., a leading pool equipment distributor, anticipates a significant drop of 15% to 20% in new pool construction this year. This decline is mirrored by reports from local contractors across the country, including Skip Ast III from Shasta Pools, who noted a challenging period for the industry since 2022. Despite efforts to adapt to the changing landscape, pool builders are facing a downturn in business as consumer priorities shift.
While overall consumer spending remains robust, households with extra funds are opting for travel, dining out, and other service-sector purchases over nonessential home upgrades. This change in consumer behavior is evident in the strong projections for the travel industry, with airlines, hotels, and cruise lines all expecting a busy season. At the same time, the rising costs of food and the Federal Reserve’s strategy to combat inflation through high-interest rates are influencing consumer purchasing decisions.
The decline in big-ticket home purchases has been unfolding over several months, affecting not only pool installations but also other backyard features like Traeger Grills. Businesses that rely on Americans’ interest in home upgrades are now navigating leaner times, with pool builders adjusting their strategies to align with the shifting market dynamics. Despite the recent slowdown, some companies are still thriving by focusing on offering high-end services to a smaller consumer base.
During the peak of the pandemic, pool installations experienced a surge of 20%, driven by the desire to create vacation-like experiences at home. However, as consumer preferences evolve, pool builders like Scott Payne and Skip Ast are raising prices to offset increasing material costs. Both individuals highlight the importance of their proactive measures during the pandemic in preparing them for the current market slowdown.
One silver lining in the decline of new pool installations is the increased demand for maintenance services. Pool Corp. notes that there is a stable demand for upkeep products like chemicals and equipment, indicating a shift towards servicing existing pools rather than building new ones. As climate change contributes to more frequent heatwaves, some consumers may view swimming pools as essential for coping with extreme temperatures.
The decline in swimming pool installations reflects a broader shift in consumer preferences towards experiences and away from home renovations. Pool builders and related businesses are facing challenges in adapting to this new reality but also finding opportunities in offering maintenance services to existing pool owners. As the market continues to evolve, businesses will need to remain agile and innovative to thrive in the changing landscape of the home improvement industry.