02/4/25
4 things to know about HOAs going into 2025
It’s time to talk about three well-known and sometimes maligned letters in real estate: HOA. We’re not doing this to rile readers up or get more clicks – discussing what a homeowner’s association is and isn’t is especially important to today’s buyers and sellers.
Why? It’s estimated that the number of homes bound by HOA will rise in 2025, just like the previous year. According to Realtor.com, 41% of all listings on the platform in 2024 were for properties associated with an HOA, a 2% increase compared to the year before. Overall, a national HOA advocacy group estimates that more than 77 million Americans – and about a third of the country’s housing stock – belong to an HOA or similar group. Here are four things to know when looking at a property with an HOA.
New home builds are likely to include an HOA. Realtor.com broke down HOA figures specifically by existing and newly built homes and found that 70% of new builds carried some sort of association fee in 2024, compared with 38% of existing homes.
The benefits, costs and rules of each HOA can vary greatly. This blog isn’t meant to highlight the horror stories many of you may have heard about HOAs in the news. Not every group costs thousands of dollars and tries to control everything about a home you own – but some do. That’s why doing your research is important (More on that in a second.) A typical HOA nationwide costs $125 a month, but for some, that amount will take care of your annual dues with some left over. Which brings us to our next point…
It’s important to read the HOA rules of a house you want. If an HOA governs a home, a packet of information should be available that includes the neighborhood rules, benefits and, of course, how much residents have to pay to belong to the group. Take time to read that packet and ask questions of your agent, the listing agent or the seller if something seems amiss or complicated. Then you’ll know if there are rules about fencing, mailboxes, paint colors, etc. Finally, be sure to ask how up-to-date your seller is on payments, too. You don’t want any surprises.
Most Americans don’t mind their HOA. At least, that’s what the aforementioned association advocacy group claims. According to one of its satisfaction surveys, 60% of members say they have a good or very good opinion of their HOA, while another 26% are neutral on the question. Furthermore, 63% of respondents said the rules of their HOA protect or enhance property values.
The important takeaway from this blog should be that the existence of an HOA isn’t a good or bad thing by itself. There’s a good chance at least a few houses looked at during any home hunt will have one. Instead, it’s important to know how the specific HOA attached to the home you want the most will affect you.
After all, knowledge is key for any journey home. If you or your clients have any questions about title or closing, our teams are always here to answer them.