Considering a home in a neighborhood with a homeowners association (HOA)? These communities often provide appealing perks like shared amenities, landscaping, and added security, but they also come with monthly dues and rules that every resident must follow.
We analyzed data from the U.S. Census Bureau, the Foundation for Community Association Research (FCAR), and the National Association of Realtors (NAR) to learn how HOAs operate throughout the U.S.
Our analysis breaks down key statistics on membership, costs, and benefits to help you understand the financial commitment and lifestyle of HOA living. Once you’re ready to move, check out our list of the best moving companies to make the process easier.
Key Takeaways
- In 2024, the U.S. had 369,000 homeowners associations, with the highest numbers in California, Florida, and Texas.
- Homes in community associations represented approximately $12.9 trillion in property value in 2024, including 65% of newly built homes and 81% of homes sold.
- According to the U.S. Census Bureau’s 2023 American Housing Survey, the average HOA fee nationwide was $243 per month, or nearly $3,000 per year.
What Is a Homeowners Association (HOA)?
A homeowners association (HOA) is a nonprofit organization that governs a residential community of homeowners living in a bounded geographical area, according to the NAR. You must purchase a townhome, condo, or single-family home with an established community to join an HOA. Not all housing communities have an HOA, but those that do typically charge a monthly or annual membership fee separate from your mortgage payments.
HOAs are led by an elected board of volunteer directors. Members of an HOA must follow the community’s governing documents, which include articles of incorporation, rules and regulations, and bylaws, covenants, conditions, and restrictions (CC&Rs). Through regular meetings with homeowners in the community, HOA directors must do the following:
- Address homeowner interests and concerns
- Collect, manage, and spend HOA dues
- Create and enforce community rules
- Set homeowner expectations
- Support community improvement projects
In 2024, HOAs collected a total of $120.9 billion in member assessments, according to the FCAR. Between 30% and 40% of HOAs are self-managed, meaning they operate under an elected board of volunteers, rather than through a management company or professional manager. As of 2024, there were an estimated 60,000–65,000 community association managers and 9,000–10,000 management companies serving HOAs across the U.S.
How Many HOAs Are There in the U.S.?
Between 370,000 and 374,000 HOAs currently operate across the country, based on estimates from the FCAR. As of 2024, there were 369,000 communities with HOAs. These communities served 77.1 million residents—23% of the U.S. population—living in 28.8 million housing units.
The exact number of communities with HOAs varies greatly nationwide. The table below shows the top five U.S. states with the highest number of HOA communities based on data from 2024.
| State | Number of HOA Communities | Number of Residents | Number of Housing Units |
|---|---|---|---|
| California | 51,250 | 14,412,000 | 5,064,000 |
| Florida | 50,100 | 9,506,000 | 3,908,000 |
| Texas | 22,900 | 6,244,000 | 2,263,000 |
| Illinois | 19,750 | 3,896,000 | 1,541,000 |
| North Carolina | 15,050 | 2,878,000 | 1,174,000 |
Twenty-three U.S. states and Washington, D.C., had 3,000 or fewer communities with HOAs in 2024. Here’s the list of states with fewer than 1,000 HOA communities during the same year:
- Alaska
- Arkansas
- Mississippi
- North Dakota
- South Dakota
- West Virginia
- Wyoming
In 1970, there were only 10,000 communities with HOAs, encompassing 2.1 million residents and 0.7 million housing units. The decade between 1980 and 1990 saw the most significant increase in the number of housing communities governed by HOAs. The jump from 36,000 communities to 130,000 communities represents a roughly 261% increase in the number of HOAs, with a corresponding 222% increase in the number of housing units and 208% increase in the number of residents.
What Are HOA Fees, and What Do They Cover?
HOA fees consist of monthly dues homeowners pay to support the amenities and services offered to them through their membership. Homeowners typically pay the same set monthly dues, but rates can vary based on home size and other factors. Since these dues reflect the perks homeowners receive by belonging to the HOA, the better the amenities, the higher the monthly fees.
Here’s a list of examples of amenities and services typically covered by HOA fees:
- Common area maintenance and repair
- Landscaping
- Liability insurance for common areas
- Pest control
- Security cameras, gates, and guards
- Snow removal
- Trash removal
- Water and wastewater utilities
According to the U.S. Census Bureau’s American Housing Survey, which was last conducted in 2023, the national average HOA fee is $243 per month. The average fee was up from $191 in 2021 and $170 in 2019.
These monthly payments don’t include any special assessments or extra charges the HOA might add throughout a given year. These extra charges, called special assessments, help pay for unexpected repairs or large projects when monthly dues and reserve funds fall short. Even though special assessments are rare, they can strain a homeowner’s budget if they don’t have the extra money saved.
The Impact of Rising HOA Fees on Homeowners
HOA fees are becoming a larger part of homeownership costs nationwide. In 2024, Realtor.com found that 41% of property listings came with HOA dues, up from 39% the year before. The median monthly fee also increased to $125, a nearly $15 jump in just one year. Rising HOA costs are often tied to higher insurance premiums, ongoing maintenance, and inflation in labor and materials. For anyone shopping for a home in one of these communities, we recommend including HOA fees in your long-term budget alongside your mortgage and property taxes.
New HOA Rules and Regulations in 2025
States are rolling out new laws to make HOAs more transparent and easier for homeowners to work with. In 2025, several new regulations are reshaping how HOAs operate and how homeowners interact with them.
- California: California’s new electronic voting law (AB 2159) allows HOAs to use electronic voting for board elections and amendments to governing documents, making participation easier for residents.
- Florida: Lawmakers now require HOA communities with over 100 units to provide a website or app that includes budgets, financial statements, and rules. New reforms also boost financial reporting, mandate reserve studies, and expand homeowner access to records.
- Arizona: Lawmakers are reviewing House Bill 2442, which requires clearer HOA budget disclosures. Senate Bill 1494 would raise the threshold for foreclosure over cases of unpaid dues and require payment plan options.
- Washington: Washington’s uniform HOA law (SB 5796) will bring HOAs under a single set of rules by 2028, standardizing enforcement, elections, and dispute resolution.
Is Living in an HOA Worth It?
Results from the FCAR’s 2024 Homeowner Satisfaction Survey showed that 94% of community association residents get along with their immediate neighbors. The same survey revealed that 60% of homeowners who belonged to an HOA had a positive experience with their community association, while another 26% rated their overall experience as neutral.
The table below highlights the advantages and disadvantages of living in an HOA.
| Pros | Cons |
|---|---|
| Provide access to amenities like pools, gyms, playgrounds, security, and parks | Come with additional costs on top of your mortgage and other financial responsibilities |
| Relieves the physical burden of property upkeep services like trash and snow removal | Has the potential for costly special assessments |
| Can help homeowners maintain and even enhance property values | Fees may not align with perceived benefits |
| Promotes community engagement | Regulations may feel too restrictive for some homeowners |
| Offer neighborly dispute settlements | Potential for mismanagement of privileges and fees |
| Homeowners can volunteer and influence the HOA board’s decisions | Rules enforcement can become intrusive |
Our Conclusion
HOA living offers advantages like shared amenities, community upkeep, and stable property values. However, rising monthly dues and the risk of extra fees can add financial pressure, and rules may feel restrictive for some homeowners. Membership costs are rising as HOAs expand, while new laws are providing residents with greater transparency and a stronger voice in how elected boards operate. Weighing these benefits and drawbacks can help you decide if an HOA community fits your lifestyle and budget.
FAQs About HOAs
Are HOA fees tax deductible?
HOA fees are not tax deductible if the property you pay them for is your primary residence. However, you can claim a portion of the HOA fees if you rent the property or if you’re self-employed and deduct the square footage of your home office.
Can your HOA enter your home?
HOA members can only enter your home without permission for emergencies, such as a fire or flooding. Should the HOA need to enter your home for maintenance purposes, they must give you reasonable notice as defined by state or city laws. Specifics regarding an HOA member entering your home can often be found in the HOA’s governing documents.
Can an HOA kick you out?
An HOA cannot kick you out of your home by evicting you. However, an HOA can place a lien on the property due to unpaid HOA fees that can force foreclosure. Proceeds from the home’s sale would go toward paying off the delinquent HOA fees.
Do all condos have HOA fees?
No, all condos don’t have HOA fees. Condo fees are different from HOA fees because they’re assessed in a slightly different manner, but they cover similar access to amenities and common area maintenance services.
What happens if you don’t pay HOA fees?
If you don’t pay your HOA fees on time, you’ll typically incur a late fee per the legal terms you agreed to in the HOA’s CC&Rs. Prolonged delinquency can result in the HOA filing a lawsuit and placing a lien on your property, which could lead to foreclosure.
What kind of home insurance should I buy as an HOA homeowner?
You will need to buy an HO-6 policy or condo insurance if you own an HOA, which covers your unit’s interior, personal belongings, and liability. Your HOA’s master policy typically covers the building’s exterior and shared spaces, including hallways, the roof, and amenities. An HO-6 policy fills in the gaps by protecting what the overall HOA doesn’t. Review your governing documents to confirm the start date of your coverage.
What’s the current state of the HOA insurance market in 2025?
HOA insurance has become more expensive and harder to secure. Some insurers are pulling out of the market entirely, especially in areas with high risk or aging infrastructure. In states like Minnesota, some communities have seen insurance premiums rise by up to 400%. These trends are placing financial pressure on associations nationwide, according to Yahoo Finance and Program Business.
Can changes to HOA insurance impact my dues or lead to special assessments?
As insurance premiums rise or coverage becomes harder to find, HOAs often pass those costs on to homeowners. This may result in higher monthly dues or one-time special assessments. In some cases, associations reduce coverage levels to cut costs, which means you could pay more out of pocket for damage or repairs.
