HOA dues are rising throughout the US. Roughly 76 Million residents have HOAs. Homeowner Associations pay for things such as neighborhood pools, recreation facilities, club houses, tennis or pickleball courts, neighborhood lighting, and landscaping & upkeep.
Buying a new construction home will likely mean there is an HOA. 81% of all new constructions homes in 2023 had HOA’s according to the US census bureau.
In some areas, HOA dues are stretching buyers budgets. Higher prices and interest rates plus HOA dues can sometimes make it cost prohibitive for buyers.
Unlike a fixed mortgage, HOA dues tend to increase as costs of maintenance and labor costs increase over time.
If buying in an HOA, know what those dues cover and how much they run. You also may want to look at the last 5 years of HOA dues to see if they have tended to go up annually or how frequently they increase. Also be sure to know if there are any planned special assessments coming up for one time projects such as resurfacing tennis courts.
HOAs can be beneficial to some; for instance, someone who wants to have access to a pool but doesn’t want to have the cost or maintenance of one in their own backyard.
If you have questions about HOA’s, don’t hesitate to reach out. And remember my team and I are on standby, 7 days a week, ready to help you take
the smoother road to sold.