ADU vs. Swimming Pool: Which Adds More Value to Your LA Home?
Mid-Century Modern Home with a Pool
When considering home improvement projects to increase property value, Southern California homeowners often wonder which investments will attract more home buyers and enhance their home's marketability. Among popular options, installing a swimming pool or adding an Accessory Dwelling Unit (ADU) top many homeowners' wish lists. But which project truly offers the greatest return on investment, especially for those preparing to sell their home in neighborhoods like Silver Lake, Los Feliz, Eagle Rock, Highland Park, and Pasadena?
As a local real estate agent specializing in listing homes and attracting motivated buyers in these sought-after Los Angeles neighborhoods, I've witnessed firsthand how each of these improvements impacts a home's market appeal, value, and ultimately, the selling price. Let's break down the advantages of each.
The Case for Adding an ADU
Accessory Dwelling Units, or ADUs, have become increasingly popular among home buyers and sellers throughout California, particularly in high-demand markets like Los Angeles. An ADU—a secondary residential unit built on the same lot as a primary single-family home—offers several significant advantages:
Increased Square Footage: Adding an ADU directly increases your home's livable area, significantly boosting its market value and attractiveness to potential buyers.
Income Potential: ADUs can generate rental income, offering a compelling financial incentive for potential buyers. Homes with income-producing potential tend to sell faster and at higher prices.
Versatility: ADUs can function as guest houses, home offices, or spaces for aging relatives, appealing to a wide range of buyers who value flexible living arrangements.
In highly desirable neighborhoods such as Pasadena, Silver Lake, and Los Feliz, I've observed that homes for sale with ADUs often attract multiple offers and sell quickly, making them a strategic investment for sellers.
The Case for Installing a Swimming Pool
Swimming pools offer undeniable lifestyle appeal, especially in the sunny climates of Southern California. They provide a luxurious, resort-like experience and can attract home buyers who prioritize outdoor living and entertainment.
However, the financial return on a swimming pool can vary widely:
High Maintenance Costs: Pools come with ongoing maintenance and operational expenses that can deter certain buyers, potentially limiting the pool of interested home buyers.
Limited Appeal: While attractive, pools are considered niche features. Not every buyer sees a pool as desirable, especially those looking for low-maintenance outdoor spaces.
Moderate Value Increase: Typically, a pool adds moderate value—often around 5-7% of the home's total value—but may not fully recoup the initial installation costs at the time of sale.
In neighborhoods like Eagle Rock or Highland Park, swimming pools can still help attract buyers, but returns on investment are typically lower compared to ADUs.
The Bottom Line: ADU or Swimming Pool?
From my experience helping homeowners sell successfully across these Los Angeles neighborhoods—Silver Lake, Los Feliz, Eagle Rock, Highland Park, and Pasadena—adding an ADU usually provides a stronger and more reliable return on investment compared to installing a swimming pool. The potential for income generation, increased livable square footage, and versatility give ADUs a distinct advantage in maximizing home value, attracting motivated home buyers, and securing top-dollar offers.
While a pool may enhance your lifestyle, an ADU is likely your best investment if your primary goal is to increase property value, appeal to a broader audience of buyers, and achieve the best possible selling price.
Ready to Increase Your Home's Value and Attract More Buyers?
If you're considering selling your home in Silver Lake, Los Feliz, Eagle Rock, Highland Park, or Pasadena, I'd be delighted to help you evaluate which home improvements will give you the greatest return. Contact me today for a personalized consultation and let's make sure your property stands out in the competitive LA market!
