Homeowners associations (HOAs) don’t exactly have the greatest of reputations among homeowners. There are many reasons for that; the restrictions that HOAs put on certain aspects of homeownership are among the top reasons. HOA fees also aren’t fixed like mortgages, and some people find these associations to be more of a hindrance than anything else.
There are benefits to HOAs, like community recreation and even landscaping services. But do these benefits outweigh the pain points among homeowners? A new study from Rocket Mortgage asked 1,000 Americans about their experiences with homeowners associations, how much they’re paying, and more, to get a sense of where they stand on these notorious organizations.
Overall, the study found that 43% of homeowners like having an HOA, meaning that nearly 60% don’t enjoy it. And among respondents who are on an HOA board, 37% don’t like having one despite serving on a board themselves.
Notably, the study showed that 10% of homeowners said they considered selling their houses for HOA-related reasons. That may not seem like a large percentage, but the idea that 100 people would consider selling their home because of a homeowners association is no small thing. The Rocket Mortgage study also found that 40% of homeowners and 19% of HOA board members feel that their HOA is incompetent.
The study also used data from the U.S. Census Bureau to get an idea of the states with the most HOAs, and Florida came out on top with 45%. Right behind Florida was Colorado, where the estimated percentage of residents in an HOA was 41%.
What about the fees and dues associated with HOAs? According to the study, the average monthly due for an HOA was $259, and the average dues were found to be within 17% of a mortgage. While the average amount homeowners pay in dues each month may seem like a lot, 69% actually said they feel that the dues they pay are reasonable. 20 percent said they feel the cost of their HOA is unreasonable, and 12% were neutral on the issue.
Given the sentiment surrounding HOAs, it might be easy to overlook the benefits of these organizations. There are, however, things about these organizations that can be good for homeowners and provide value. The study found that the most common benefit of an HOA was landscaping services (52%), followed by sidewalk maintenance (43%), children’s play areas (39%), and a swimming pool (38%).
Encouragingly, 59% of homeowners said they feel like their HOA fees are reasonable compared to the amenities they get to enjoy. Community WIFI (74%), outdoor recreation (55%), and swimming pools (54%) were the most-enjoyed amenities among respondents that HOAs provided.
Largely, it seems that there are benefits to having an HOA and that homeowners aren’t too bothered by the dues they have to pay to enjoy these things. However, a majority of respondents in the Rocket Mortgage study don’t like having an HOA, and it’s clear that some people are so averse to these organizations that they’d even consider selling their house in order to not have to deal with them.
Regardless of where you stand on HOAs, homeownership does sometimes come with rules and regulations if you’re in certain neighborhoods and communities. And with HOAs prevalent all across the country, there’s definitely no reason to think that these associations will become obsolete any time soon. For the time being, HOAs will be a necessary evil for some. For others, they’ll continue to be a beneficial part of living in their community, and the amenities will outweigh the headaches.
