What's Happening?
A recent report from Realtor.com reveals that nearly 44% of homes for sale in the U.S. are now subject to homeowners association (HOA) fees, marking a significant increase from 34.3% in 2019. The median HOA fee has risen to $135 in 2025, up from $125
the previous year and $108 in 2019. This trend is attributed to the growing prevalence of HOAs, which are no longer limited to condos or new developments but are increasingly common in existing homes. The rise in HOA fees is driven by factors such as increased insurance costs, stricter building safety standards, and higher labor and material prices. The report highlights that homes with HOA fees tend to be larger and more expensive, with single-family homes averaging 2,306 square feet and a price per square foot of $216.76, compared to 1,818 square feet and $205.10 for homes without HOA fees.
Why It's Important?
The increasing prevalence and cost of HOA fees have significant implications for the U.S. housing market. As more homes are subject to these fees, the overall cost of homeownership rises, potentially affecting affordability for many buyers. This trend could influence buyer preferences, pushing them towards non-HOA properties or smaller homes to manage costs. Additionally, the expansion of HOAs into existing home markets reflects broader changes in housing construction and inventory, which could reshape the resale market. The financial burden of rising HOA fees may also impact the economic decisions of homeowners, influencing their ability to invest in other areas or save for future needs.
What's Next?
As HOA fees continue to rise, potential homebuyers may need to adjust their expectations and budgets to accommodate these additional costs. The trend of increasing HOA prevalence suggests that more communities will adopt these structures, potentially leading to further increases in fees as maintenance and regulatory costs rise. Homebuilders and developers may also continue to favor HOA models for new constructions, given their ability to manage shared amenities and infrastructure. Policymakers and housing advocates might need to address the affordability challenges posed by rising HOA fees, potentially exploring regulatory measures or incentives to mitigate their impact on homebuyers.
