When you’re in the market for a new home, your focus is likely on mortgage rates, home prices, your down payment, and closing costs. But one thing that might not be top of mind is homeowners association (HOA) fees. While not every home comes with them, it’s important to know they’re a possibility—especially depending on the neighborhood you choose.
A homeowners association is a group that manages a residential community, often handling shared spaces and enforcing community standards. Some buyers appreciate the structure and amenities an HOA offers, while others may view the fees as an added cost. The key is understanding what those fees cover and whether the value makes sense for your lifestyle and budget.
The Benefits of Having an HOA
If you’ve ever admired a beautifully kept neighborhood—well-maintained landscaping, clean streets, strong curb appeal—there’s a good chance an HOA is behind it. Here are a few benefits they can provide:
- Neighborhood Maintenance: Many HOAs handle landscaping, snow removal, and upkeep of shared areas, which helps maintain the community’s overall appearance.
- Amenities: Depending on the area, you might have access to perks like a pool, fitness center, clubhouse, or even private security. While there’s a fee, these amenities can save you money on outside memberships.
- Property Value Protection: Because HOAs enforce community guidelines, they help prevent homes from falling into disrepair—protecting your property’s value in the long run.
- Reduced Personal Upkeep: In some cases, HOAs take care of exterior repairs and shared maintenance tasks, easing your responsibilities as a homeowner.
HOA Fees: More Common, Especially in Newer Neighborhoods
Not every home comes with HOA fees—but they’re fairly common, especially in newer neighborhoods. In fact, according to The Wall Street Journal, over 80% of newly built single-family homes are now part of a homeowners association.
But it’s not just new construction—many resale homes are part of an HOA as well. In fact, according to Axios, around 4 in 10 homes across the U.S. had an HOA in 2024.
HOA Fees and Your Home Search
Be sure to ask your real estate agent which homes have HOA fees and how much those fees are. HOA dues can vary—some are monthly, some quarterly, and some communities don’t have them at all. For reference, the median monthly fee rose to $125 last year, according to Realtor.com.
That said, it’s not just about the cost—it’s about what you’re getting in return. As Danielle Hale, Chief Economist at Realtor.com, puts it:
“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.”
Bottom Line
Before buying in an HOA community, take time to review the fees and rules so you know exactly what’s included, how it fits into your budget, and any restrictions that may apply.
Would you prefer the convenience and amenities that come with an HOA, or would you rather have more freedom and fewer fees? Let’s talk about what works best for you.
