There are few aspects of home ownership that are as polarizing as homeowners associations: for their proponents, HOAs are viewed as a way to raise property values and improve quality of life for everyone in the neighborhood.
For those who oppose HOAs, however, they are often viewed as a frustration: some accuse HOAs of restricting individual expression, forcing people to follow arbitrary rules, and tacking unnecessary fees and fines onto the existing cost of home ownership.
Fewer than half of all people living in neighborhoods with HOAs actually liked the institutions, and only 64% believed that their HOAs were honest about handling finances, according to a study that Rocket Mortgage released in March 2024. At the same time, however, the percentage of neighborhoods with HOAs continues to grow – especially in the Sun Belt states, where an increasing number of Americans are choosing to settle down.
“In most southern states and western states, it’s nearly impossible for a homebuyer to locate a single-family home that’s not part of some sort of HOA,” Deborah Goonan, administrator of the blog Independent American Communities, told CNBC. “Certain local governments require almost all new construction to have an HOA.”
In addition to the frustrations that many Americans have with their HOAs, many critics also take issue with local governments essentially passing off what might have been their responsibilities to privately-controlled bodies.
For cities, encouraging HOAs is the result of “the desire for municipalities to offload their responsibilities for taking care of things that you would normally associate with paying your taxes,” Steve Horvath, co-founder of advocacy group HOA United, told CNBC (CMCSA). “They act as hyperlocal governments and, in many ways, supersede all the other laws that exist.”
Despite the objections that many people living in HOA neighborhoods have towards the bodies, comparatively few people take issue with how much they’re paying in dues to the organizations. Twenty percent of people said their HOA dues were unreasonable, compared to 69% who found them reasonable, in the Rocket Mortgage (RKT) survey. The average monthly HOA fee is $259, according to the Foundation for Community Association Research. In some parts of the country, however, that number is much higher.
Continue reading to learn which states have the highest average HOA fees, according to the Foundation for Community Association Research.
