Here’s What the Rise of Homeowners Associations Means for Buyers


When searching for a new home, many buyers dream of a property free from a homeowners association (HOA). But with the increasing prevalence of HOAs, avoiding them may be more challenging than ever.

In fact, HOAs are growing rapidly in the U.S. According to the U.S. Census, 65% of new single-family homes in 2023 were part of an HOA, up from 49% in 2009. With these communities becoming more common, it’s essential to understand what HOAs are and how they might affect your home-buying decision.

Let’s break down what you need to know.

Why Are HOAs on the Rise?

Homeowners associations are groups of elected residents who manage and maintain common areas like parks, pools, and neighborhood roads. While HOAs can exist in different property types—single-family homes, condos, or townhomes—they’ve become increasingly prevalent due to their financial benefits for local governments.

“They don’t have to plow the streets or handle maintenance but still collect full property taxes,” explains Thomas M. Skiba, CEO of the Community Associations Institute.

Today, HOA communities represent about 30% of U.S. housing, housing over 75 million Americans. States like Florida lead with the highest percentage of homes in HOAs, at nearly 67%.

The Costs of HOA Membership

Living in an HOA community often comes with perks like shared amenities, but these benefits have a price tag. Fees can range from $100 per year to over $1,000 per month, depending on the neighborhood and its amenities.

It’s important to note that these fees tend to increase over time. In a recent survey by Frontdoor, 51% of HOA members reported a rise in their dues, and 65% noted frequent increases.

What to Expect From HOA Communities

While many homeowners appreciate the amenities and services provided by HOAs, experiences can vary. According to Frontdoor, about 60% of homeowners report positive experiences, but 1 in 3 have had grievances that made them consider moving.

Common concerns include rising fees, inconsistent rule enforcement, and intrusive policies, such as restrictions on exterior paint colors.

How to Evaluate an HOA Before Buying

If you’re considering a home in an HOA community, taking a closer look at the association is crucial. Here’s a checklist to help you make an informed decision:

  1. Request HOA Documents
    Ask for governing documents like covenants, bylaws, rules, regulations, and fee schedules. Review the minutes from board or annual meetings to understand how the community operates.

  2. Assess the Costs
    Inquire about monthly or annual dues, the HOA’s budget, and any history of fee increases.

  3. Check for Unpaid Assessments
    Ensure the seller addresses any outstanding balances on the property as part of the sale.

  4. Review Litigation and Reserves
    Look into any pending legal disputes or judgments. Verify if the community has adequate reserve funds for future repairs or renovations.

  5. Attend a Meeting
    If possible, sit in on a board or annual meeting to get a sense of how the HOA functions.

Is an HOA Community Right for You?

HOAs offer advantages like well-maintained common areas and shared amenities, but they also come with rules and added expenses. By understanding what to expect and doing your due diligence, you can decide whether an HOA aligns with your homeownership goals.

Still unsure about HOAs? Your real estate agent is here to guide you through the process and help you find the perfect community for your needs.


Original article: Here's what the rise of homeowners associations means for buyers

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