What's Happening?
A recent analysis by Realtor.com reveals that approximately 44% of U.S. home listings in 2025 are associated with homeowners associations (HOAs), a significant increase from previous years. This trend is particularly prevalent in southern and western
states, where new home construction is concentrated. HOA fees, which cover community services such as snow removal, landscaping, and security, have risen from a median of $108 in 2019 to $135 in 2025. The increase in HOA prevalence and fees is attributed to changing home building trends, with a notable rise in townhouse and condominium developments. These fees add to the financial burden on homeowners, especially in regions like Florida, where HOA fees are among the highest in the nation.
Why It's Important?
The growing prevalence of HOAs and rising fees have significant implications for the housing market and home affordability. As HOA fees become a larger portion of monthly mortgage payments, they contribute to the overall cost of homeownership, potentially pricing out some buyers. This is particularly concerning in high-fee areas like Florida, where the combination of HOA fees and other housing costs can make it difficult for potential buyers to qualify for mortgages. The trend also reflects broader shifts in housing development, with more homes being built in community associations, which may influence future urban planning and housing policy decisions.
What's Next?
As HOA fees continue to rise, there may be increased scrutiny from policymakers and consumer advocates regarding the transparency and regulation of these fees. Homebuyers and real estate professionals might push for more detailed disclosures about HOA obligations during the home buying process. Additionally, the trend could lead to a reevaluation of housing affordability strategies, particularly in regions with high concentrations of HOA-managed properties. The impact on the housing market could prompt discussions on balancing community benefits with affordability concerns.
