A new report finds a growing number of homes are in an HOA
of ConsumerAffairsIn addition to record high home prices and interest rates once again north of 7%, many homeowners face another rising cost homeowner association fees.
Not every home is connected to an HOA but most new ones are. The fees they chargecan be fairly high, especially if the HOA has amenities that it must maintain, like streets, swimming pools and dog parks, just to name a few. A new report from Realtor.com found an increase in both the prevalence and cost of HOA fees for homes listed in 2024.
The report reveals that 40.5% of for-sale listings last year included a nonzero HOA fee, up from 39.2% the previous year. The median monthly fee also rose to $125, compared to $110 in 2023.
Danielle Hale, chief economist at Realtor.com, emphasizes the financial burden these fees add to the already daunting costs of homeownership.
"With a down payment and closing costs upfront, and then principal, interest, taxes, and insurance every month after that, purchasing a home is already a financially daunting task, before adding in the rising cost of HOA dues," Hale said.
New homes more likely to have an HOA
The report identifies newly constructed homes as more likely to have HOA dues, with 69.9% of new builds in 2024 requiring such fees, compared to 37.1% of existing homes. Condos, rowhomes, and townhomes are particularly affected, with 83.8% of these listings carrying HOA fees, while only 33.6% of single-family homes do.
Geographically, areas with high concentrations of new construction or condos, especially in desirable beach or ski markets, are more likely to impose HOA fees. The top metropolitan area for HOA prevalence is Edwards, Colo., where 89.9% of listings have HOA dues, with a median monthly fee of $525. Other notable areas include Myrtle Beach, S.C., and Heber, Utah, with significant shares of listings subject to HOA fees.
However, there are locations where you are less likely to encounter fees. These are mostly smaller, inland markets with fewer new constructions and condos. Anniston-Oxford, Ala., and Elizabethtown-Fort Knox, Ky., are among the areas with the lowest share of listings with HOA dues, at 3.8% and 5.0% respectively, and considerably lower median fees.
Photo Credit: Consumer Affairs News Department Images
Posted: 2025-01-15 19:24:16
