What Buyers Need To Know About Homeowners Association Fees

What Buyers Need To Know About Homeowners Association Fees

When buying a home, you're likely focused on things like mortgage rates, home prices, your down payment, and closing costs. But one cost you might overlook is homeowners association (HOA) fees. These aren't required in every neighborhood, but depending on where you buy, they could be part of the equation.

An HOA is an organization that manages a residential community, including shared spaces and rules for upkeep. While some buyers see the value in what HOAs offer, others view the fees as an added cost. The important thing is understanding what those fees cover and whether the tradeoff makes sense for you.

What You Get from an HOA

If you've ever been drawn to a community because of its clean, attractive look—like neat landscaping or well-kept streets—an HOA likely plays a big role in maintaining that appeal. Here are a few of the advantages:

• Neighborhood Upkeep: HOAs often handle things like landscaping, snow removal, and maintenance of common areas, helping preserve the community’s appearance.

• Access to Amenities: Many HOAs offer perks such as pools, clubhouses, gyms, or even security services. While there’s a monthly fee, these amenities can eliminate the need for separate memberships elsewhere.

• Home Value Protection: Enforcing standards prevents neglect and keeps properties from falling into disrepair, which helps maintain or increase home values.

• Reduced Responsibilities: Some HOAs handle exterior repairs or other shared maintenance, easing the burden on individual homeowners.

Are HOA Fees Common?

Not every home is part of an HOA, but they are especially common in newer developments. In fact, according to the Wall Street Journal, more than 80% of newly built single-family homes are now located in HOA communities.

It’s not only new construction homes that come with HOA fees—many existing homes do, too. In fact, Axios reports that around 40% of homes had an HOA in 2024.

How HOA Fees Affect Your Home Search

As you begin your search, ask your agent which properties have HOA fees and how much they cost. Some neighborhoods charge fees monthly, others quarterly, and some have none at all. For reference, the median HOA fee reached $125 per month last year, according to Realtor.com.

Keep in mind, what you get in return for these fees can vary widely. 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 a community with an HOA, take time to review the fees, what they cover, and any rules you’ll need to follow. That way, you’ll understand how it fits into your budget and lifestyle.

Would you prefer the added perks of an HOA, or the freedom of a home without one? Let’s talk about what fits your goals best.