Greg Taylor SVP, Performance Marketing and Media Buying | realtors.com
Homebuyers are facing an increase in homeowners association (HOA) fees, according to a recent report by the Realtor.com economic research team. In 2024, 41% of homes listed for sale on Realtor.com included HOA fees, up from 39% the previous year. The median HOA fee rose by 14% to $125 per month, compared to $110 in 2023.
Danielle Hale, Chief Economist at Realtor.com, commented on the financial challenges homebuyers face: “With a down payment and closing costs up front, and then principal, interest, taxes, and insurance every month after that, purchasing a home is already a financially daunting task before adding in the rising cost of HOA dues.” She advised buyers to understand the benefits provided by HOAs and how these fees fit into their overall budget.
The report highlights that certain HOAs offer amenities like pools or tennis courts that can enhance property values. However, some HOAs managed by developers may have less transparent governance and finances. Buyers are encouraged to evaluate whether the benefits justify the expense.
Newly constructed homes are more likely to include HOA fees than existing homes. In 2024, 70% of new builds had HOA dues compared to 38% of existing homes. Existing homes typically had higher monthly fees than new constructions.
Attached dwellings such as condos are more prone to having HOA fees than single-family homes. Danielle Hale noted: “Homes like condos, townhouses, and new-construction single-family homes in neighborhoods with ample amenities are more likely to have an HOA fee.” The median monthly fee for condos was $375 last year compared to $58 for single-family homes.
The report also identified vacation destinations as areas where listings frequently carry HOA fees. Edwards, CO topped the list with 90% of listings having HOA fees. Other notable locations include Myrtle Beach, SC; Heber, UT; Jackson, WY; Orlando and Lakeland in Florida.
In contrast, smaller inland markets like Anniston, AL; Elizabethtown, KY; and Jonesboro, AR had lower shares of listings with HOA fees.
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