The Rise Of The HOA: Why HOAs Are Proving To Be Popular With Homeowners Today
According to a study in 2019, almost 60 percent of newly built single-family homes and 8 percent of new houses are part of a Homeowners Association (HOA). Not only are they becoming more common, but these properties are selling quicker and for more on the market. While California still leads the table with a record number of HOAs, Mississippi remains at the bottom, with fewer than 1,000 HOAs, but this figure is rising rapidly. With such undisputable statistics, it is clear that HOA homes are becoming more popular as the years go by. So with all of the arguments about the downsides to living in an HOA and the lack of freedom that comes with it, why do HOA homes continue to outsell their counterparts on the market today? It turns out that even with their cons, HOA homes are providing some unique benefits to their owners.
The Maintenance And Landscaping Perk
A major perk of being in an HOA is that landscaping and maintenance are taken care of for you. According to the American Time Use Survey, Americans spend as much as 70 hours a year on landscaping and lawn care. This does not include the time spent mowing lawns, which will drive the figure up considerably. Given that one in five Americans regard mowing the lawn as their least favorite chore, the benefit of having it done for them is a welcome one.
There is also the additional paperwork perk. Access to amenities like community pools and parks is a bonus of most HOAs. However, HOA homeowners don’t need to worry about the paperwork aspect of this. It is the association’s responsibility to apply for the necessary permits and ensure that health and safety codes are adhered to.
Higher Property Values Mean Fewer Property Fluctuations And Great Profits When You Sell
In a study by George Mason University, it was found that a house with an HOA sells for 5 to 6 percent higher than a house that is not in one. HOA communities are also known for lower property price fluctuations, partially due to their rules and regulations aimed at creating desirable communities with amenities like tennis courts, swimming pools, and well-landscaped lawns. Like branding for a business, the enforcement of certain rules and regulations cumulates to create a certain image for the community. However, some homeowners are still fearful of HOA Selective Enforcement – the non-uniformity of rule enforcement for different homeowners in the association. In fact, states like Florida and Washington have come under fire in recent years for cases of selective enforcement. Nonetheless, lower uncertainty in the value of their property and a guarantee of higher returns when selling remains lucrative.
Some HOAs Provide An All-Inclusive Package, Including Utilities
One of the downsides of HOAS that is commonly cited is the additional fee homeowners need to pay. This can vary according to HOAs and locations. For some states like Florida, homeowners in an HOA can pay between $200 and $300 per month, while HOAs in California charge $600-$700 per month. In high-cost areas like Beverly Hills, luxury condos can charge as much as $3,000 extra. However, many of these associations also include utility bills in their monthly fees, including gas, landscaping, and water bills. For a homeowner, this simplifies the task of monthly home maintenance, with most of their household bills clumped into one payment.
Even though HOAs may seem like the dream setup for homeowners, it pays to do your homework before joining one. Although they come with a lot of perks that continue to reel in homeowners today, there are also many cited cases of downfalls. Whether the pros will outweigh the cons of being an HOA homeowner remains up to you.
