HOA Fees Are Rising: What Homebuyers Need to Know
As homebuyers face high mortgage rates and rising costs, they are feeling another burden: rising homeowners’ association (HOA) fees. These fees fund maintenance, security, and communal amenities.
In 2024, the average HOA fee has surged to $390 per month, up significantly from $250 a decade ago. Homebuyers, particularly those looking for condos, townhomes, or homes within planned communities, must carefully assess these fees as part of their overall budget.
Danielle Hale, Chief Economist at Realtor.com, emphasizes the importance of factoring in HOA dues when considering a home purchase.
“With a down payment and closing costs up front, and then monthly principal, interest, taxes, and insurance, buying a home is already a daunting task. And, HOA dues are rising,” says Hale.
“Buyers should understand what benefits the HOA provides, such as maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”
In some areas, HOA fees cover a wide range of services, from lawn care to security patrols and community amenities like pools or gyms.
These features can improve a neighborhood’s quality of life. But, buyers must see if the extra cost matches their priorities and budget.
