Condo shoppers have more to contend with than just rising home prices. According to a new report from Trulia, homeowners association (HOA) fees are on the rise across the nation.
The U.S. has seen a rise in homeowners association (HOA) fees since 2005, according to the report. It shows that the average HOA fee in 2005 was $250. Ten years later, in 2015, the average fee increased to $331. This increase outpaced the nation’s home price growth and also exceeded the inflation rate by 5.9 percent.
Even throughout the decade’s housing crisis and recession, HOA fees continued to march upward and onward. Trulia delved into the types of properties and markets that are likely to have high HOA fees and what caused these fees to rise so consistently.
Residential building age
For every year that a building gets older, the HOA fees increase. For example, the report found that the HOA fees paid by households in buildings constructed in 2005 or later were about $90 per month cheaper than monthly fees in homes built between 1960 and 1969.
Trulia’s research shows that the main reason for the consistent rise in HOA fees over the past decade is because the average residential building in the United States is increasingly getting older, and older buildings tend to require higher HOA fees.
Number of units
More units also equal higher HOA fees. Buildings with 20 to 29 units had monthly HOA fees that were $160 higher per month than single family detached homes within a development, while buildings with 50 or more units had monthly HOA fees that were $330 higher than the same single family homes. The report also estimates that an additional bedroom in a home increased the HOA fee by $30 a month.
HOA fee winners and losers
Out of the 50 largest metro areas in the United States with occupied housing units, New York had the highest average HOA fee paid by households at $571 per month. Miami came in fourth with an average monthly HOA fee of $415. Areas with the lowest average HOA fee paid by households included Nashville ($194) and Las Vegas ($198).
I don’t understand why there’s a demand in pushing HOA fees. I would think it would be a deal breaker in buying real estate. Q Can you say no to HOA Fees before buying a property…
Dear Mayor of Chicago
As a loving City of Chicago Citizen and home owner, I have been deeply concerned about the lack of mandate or regulation on home association management companies specifically on rising HOA costs which takes advantage of home owners. As a city I request a review of the current regulations monitoring Home Owner Association companies and their rising costs to home owners. My HOA was at $400 in 2016
in the West Loop and now in 2021 the company has raised it to $700.00 per month. How is there not a cap and accountability set to the management companies to protect home owners? Given the challenges in Chicago and rising costs, there should be a zoning cap at how much HOA costs should cover based on services and amenities. I am deeply disappointed and sincerely request your help to investigate and raise this matter for public good. I dont want to leave this city but its becoming far to expensive and the people feel neglected.
Respectfully,
A Concerned City of Chicago Citizen