#USA #Austin #Housing Market #Realtor.com #Homeowners Association

The Surging Trend of HOA Fees in the U.S. Housing Market

The role of homeowners associations (HOAs) in the U.S. housing market has shifted dramatically in recent years, with nearly 44% of homes currently on the market subjected to various fees. This figure comes from the 2025 Homeowners Association Report published by Realtor.com, which has documented a noteworthy increase from 34.3% just a few years earlier in 2019. The climbing presence of HOAs indicates a significant trend in how homes are built, maintained, and operated across the country.

Understanding Homeowners Associations (HOAs)

HOAs operate as governing bodies in residential communities, tasked with overseeing communal areas and ensuring that certain standards are upheld. While their role has traditionally been linked to condominiums and new developments, their influence extends now into a growing number of existing homes. This shift has been driven, in part, by the shared amenities and services that many newer homes incorporate.

Joel Berner, a senior economist at Realtor.com, highlighted that the construction boom that favored HOA-heavy communities earlier in the decade is now permeating the resale market as these communities rise in popularity. The integration of shared amenities requires ongoing maintenance costs, which means HOA fees are more necessary now than ever before.

Furthermore, rising insurance costs, stringent safety regulations, and increasing expenses associated with labor and materials have compelled many association boards to elevate dues. This trend makes HOA fees a prevalent and rising element of homeownership today.

The Climb in HOA Costs

The median HOA fee in 2025 reached $135 per month, increasing from $125 in 2024 and $108 in 2019. This continuing trend of rising fees consistently affects homebuyers, making it essential to factor these costs into their overall budget. Additional data from the report indicates that there is a notable presence of HOAs among various home types, especially condominiums and townhouses.

Approximately 84.8% of condo and townhouse listings are subject to monthly dues. In the case of single-family homes, that figure stands at about 33.4%. This indicates a definite trend toward broader application of HOA fees beyond just high-density living.

Implications for Homebuyers

Homes linked with HOAs also tend to be larger and costlier than their fee-free counterparts. On average, single-family homes that are subject to HOA fees measure around 2,306 square feet with a price-per-square-foot of $216.76, compared to 1,818 square feet and $205.10 for homes without such fees.

Furthermore, the median selling price for homes that are part of an HOA is reported to be $450,000, contrasting sharply with $374,900 for homes not associated with an HOA. This price disparity reflects not just the additional costs of dues, but also highlights the overall age and type of housing; for instance, the typical HOA home was built in 1998, whereas those without HOA dues date back to 1968 on average.

Regional Trends in HOA Adoption

When analyzing HOA prevalence geographically, Nevada emerges as the leader, with 68.3% of its listings associated with an HOA. In stark contrast, South Dakota reports the lowest at just 12.3%. Notably, the West and South regions feature an abundance of HOAs and have witnessed significant growth since the pandemic began.

Florida stands out for the highest HOA costs when comparing larger metropolitan areas, largely attributed to factors such as climate-related insurance premiums and new safety requirements following past crises, like the Surfside condo collapse in 2021. Cities including Miami and Panama City report HOA fees comprising significant portions of the mortgage payments, raising pillars of concern among potential homeowners about affordability.

Florida's conditions highlight how essential it is for future homeowners to understand or predict potential changes in costs arising from HOA dues.

Conclusion

The 2025 report by Realtor.com signals a major evolution in the landscape of homeownership. With nearly half of homes for sale now linked to HOAs, it raises essential questions regarding affordability, community standards, and the future direction of housing marketing dynamics. Buyers today must remain vigilant, informed, and prepared to navigate the new financial realities encompassing HOA fees as they continue to reshape homeownership's landscape across the United States.