When you’re budgeting to buy a home, you're probably focused on the mortgage rate, purchase price, down payment, and closing costs. But there’s another potential expense that often gets overlooked—homeowners association (HOA) fees.
HOA dues aren’t part of every property, but they’re common in many communities, especially newer ones. Before you fall in love with a home, it’s important to know whether an HOA is involved and how the fees could affect your monthly budget.
What Is an HOA and Why Does It Matter?
A homeowners association is a group that manages shared spaces and sets community rules to maintain a certain look and feel. Some buyers welcome the structure and convenience, while others see the fees as a downside. Either way, it’s essential to understand what you’re paying for.
Why Do Some Buyers Prefer HOA Communities?
Here’s why HOA-managed neighborhoods are appealing to many homebuyers:
-
Clean, Well-Maintained Neighborhoods: HOAs typically cover services like landscaping, snow removal, and upkeep of shared spaces, which keeps the area attractive.
-
Amenities: Some offer pools, gyms, parks, security patrols, or clubhouses—features that could save you money compared to paying for them individually.
-
Home Value Protection: Rules help prevent neglected or poorly maintained homes, which can help preserve property values.
-
Fewer Responsibilities: In some communities, the HOA handles exterior repairs or roof maintenance, reducing your personal upkeep.
HOA Fees Are Becoming More Common
HOA-managed homes aren’t just a trend—they’re quickly becoming the norm. Over 80% of newly built single-family homes are now in HOA communities, according to The Wall Street Journal (see chart below):
And it’s not limited to new builds. As of 2024, about 40% of all homes in the U.S. are part of an HOA, based on Axios reporting.
What to Ask During Your Home Search
If you're considering a home with an HOA, be sure to ask:
-
Is there an HOA?
-
How much are the dues?
-
What do the fees cover?
HOA fees can vary—monthly, quarterly, or annual—and range widely. In 2023, Realtor.com found the median fee was $125 per month.
That might sound steep, but consider what’s included. It may offset costs like lawn care, exterior maintenance, or even a gym membership. As Realtor.com Chief Economist Danielle Hale explains:
"When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget."
The Takeaway
Before making an offer on a home in an HOA-managed community, make sure you’ve reviewed the HOA documents, understand the rules, and know how the fees fit into your monthly budget.
Are you the type who prefers structure and shared perks—or would you rather skip the fees and have full control over your property? Let's find the right fit for your lifestyle.
The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.
Tim Stice, Broker Realtor | Hawaii Life | Maui, Hawaii | Real Estate Agent
The information and opinions in this article are not investment advice. Tim Stice makes no guarantees about accuracy or completeness. Always do your own research and consult a professional before making financial decisions. Tim Stice is not liable for any loss or damage resulting from reliance on this content.
Tim Stice, Broker Realtor | Hawaii Life | Maui, Hawaii | Real Estate Agent
