Swimming Pool and Spa Retailers NAICS 459999

Mar 31, 2025 - Housing Starts Rise

• Single-family housing starts, which are a leading indicator of swimming pool construction and pool supplies demand, increased by 11.4% in February 2025, the highest level since February 2024, according to National Association of Home Builders data in ProBuilder. Limited housing inventory helped to boost single-family home construction in February, despite elevated material costs stemming from tariff issues and construction labor and buildable lot shortages. Housing starts saw gains of more than 20% in the West while there were declines in the Northeast (-4.7%), Midwest (-21.5%), and South (-8.3%).
• Consumer confidence levels, an indicator of discretionary spending, have fallen due to consumer anxiety about tariff effects and economic uncertainty, according to a report in CFO Dive. The consumer sentiment index from the University of Michigan dropped 11% in March 2025, marking the third straight month of declines and hitting the lowest level since November 2022. In addition, the Conference Board index of consumer confidence fell in March 2025. According to Stephanie Guichard, senior economist for global indicators at the Conference Board, “Consumer confidence declined for a fourth consecutive month in March, falling below the relatively narrow range that had prevailed since 2022.”

• Pool owners can expect to see chlorine prices stabilize in 2025 as supply chains improve and inflationary pressures subside, following higher prices since the COVID-19 pandemic, according to a report in Pool Magazine. Many industry experts expected prices to decline substantially in 2024, which didn’t occur due in part to market dynamics, rising production and transportation costs, inflation, and supply and demand imbalances. Meanwhile, pool owners have mitigated higher chlorine prices by exploring alternative sanitation methods such as UV sanitation systems and mineral-based algaecides, optimizing chemical usage, and preparing for seasonal changes. The surge in pool construction during the COVID-19 pandemic led to a rise in demand for pool chemicals including chlorine. However, the chlorine industry could not quickly ramp up production, a problem compounded by a major fire at a major pool chlorine producer. Prices peaked in 2022 and remain 20% higher than prior to the pandemic.
• Many US homeowners are investing in home renovations amid ongoing economic uncertainty, according to data from Nationwide reported in HBS Dealer. Nationwide’s recent Homeowner Survey found 51% of homeowners completed a “major home renovation project” in the past two years. Empty-nesters spent the most on home renovations at $8,670, compared to $5,128 for the typical home owner. Empty nesters are investing more in large-scale projects compared to the average homeowner. According to Nationwide’s Casey Kempton, “A complex housing market has many homeowners reconsidering plans to sell. For empty nesters, that means upgrading their current homes to meet their needs in the next life stage, rather than relocating.” New pool and hot tub installations, which often take place during a home renovation, are a demand driver for pool maintenance supplies.