For the 35th quarter in a row, new residential swimming pool construction saw a gentle increase from previous activity.
According to Metrostudy, a firm specializing in market analysis in the construction industry (and sister publication to PSN), new construction in the first quarter of this year rose 7.5% over the same time last year, and 1.5% more than the previous quarter.
This is indicated by way of the New Pool Index (NPI). This comparative figure measures swimming pool construction against 2005, considered the peak of pool-industry activity. It works similar to a percentage, with 2005 activity represented by 100. Numbers above and below 100 show the percentage comparison: An index of 120 would indicate activity that was 20% higher than in 2005; an 80 would mean it was 20% lower.
For 2019’s first quarter, Metrostudy calculated an NPI of 51.4, representing the 7.5% increase over Q1 2018. This marks the 35th consecutive quarter of year-over-year gains since 2009, when the industry hit the bottom of the Great Recession.
Still, analysts expect the climb to slow later this year. While they forecast this year’s NPI to reach year-over-year gains of 5.2%, they believe that will drop to 0.6% next year – still an increase, albeit a smaller one.
“Pool builders remain busy on the strength of the economy and the ability of homeowners to leverage record levels of home equity. Equity-rich coastal markets continue to be hotspots for activity,” said Metrostudy Chief Economist Mark Boud. “We forecast continued growth in new pool construction over the next few years; however, growth rates are expected to moderate, a trend that is in line with the late-innings of the housing cycle.”