More than 1 in 3 (35%) homeowners in a recent survey said they belong to an homeowners association (HOA), and 57% said it makes their lives easier, according to a new report from LendingTree.
LendingTree’s latest report surveyed 1,000-plus homeowners on the advantages and disadvantages of HOAs. According to the report, Gen Zers (47%), six-figure earners (45%) and residents in the West (44%) are the most likely to be in HOAs. Membership was the least common among parents with adult children (26%), those who earn less than $50,000 (27%), and residents in the Midwest (27%).
Key highlights:
- When buying their most recent home, 53% of homeowners said they sought an HOA, 31% said they didn’t think about it, 16% said they didn’t want one, and 9% said they wanted one but now regret it.
- Of those who reported HOAs make their lives easier, they see their dues go to neighborhood landscaping (64%), security (44%), personal landscaping (34%), and sports and leisure amenities (31%).
- Meanwhile, 23% of homeowners said their HOA makes their life harder, with 15% having received a violation before. The most common violations are landscaping (34%), design changes (23%), fencing (23%), and trash pickup (21%).
- While 63% of homeowners feel their fees are fairly priced, 35% think their HOA is too expensive to justify the benefits.
- The annual dues for an HOA average $291 a month—or about $3,500 a year. Men reported they spend more monthly on HOA fees than women—$317 versus $245, on average.
- Almost half (45%) of HOA members report their dues increased over the past year, and nearly 3 in 4 (73%) members who feel they’re overpaying saw their HOA fees increase in the past year.
- Of those who feel their benefits are too expensive, 33% said their HOAs have neglected maintenance responsibilities.
Major takeaway:
LendingTree’s Senior Economist Jacob Channel explained that homeowners seek out HOAs because “They believe their HOA can help them protect and grow the value of their home. Because an HOA can compel members to keep their homes to certain standards, they can help make a neighborhood seem more appealing and, as a result, help maintain or increase property values.”
Channel added that fees can be a downside to HOAs, however. “This can be especially true for recent homebuyers who had to deal with high rates and home prices that left them with little money,” said Channel.
When it comes to violations, Channel said they “can vary depending on the specific rules of your HOA. Common violations include improper landscaping, not disposing of trash regularly or properly, having unruly pets, parking your car in the wrong place or painting or decorating the exterior of your home in a way that hasn’t been approved.”
Channel concluded, “HOAs can provide you with the peace of mind that comes with knowing that your neighbors probably aren’t going to do anything crazy, like regularly throwing all-night parties or painting their home bright pink. But HOAs aren’t for everyone, and people who aren’t particularly concerned with regularly mowing their lawn or who want to maximize their freedom to do with their home what they please should probably avoid them.”
For the full report, click here.
