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Homeowners Associations growing in popularity

If you’re part of a homeowners association (HOA), then you probably won’t be surprised to learn that things are looking on the up for this way of living – as predicted by the Foundation for Community Research. The foundation has found that the number of new condominium and homeowners associations is expected to rise by 1.3% this year, and that they now represent nearly 25% of housing stock in the U.S. In 2019, around 74.5% of homes sold were part of HOA communities. Dawn Bauman, executive director of the Foundation for Community Research, stated that although the current global health crisis had posed tough financial and operational challenges for this type of housing, it remains strong, and is predicted to continue its growth in the coming years.
High Levels Of Satisfaction Among HOA Members
Around 70% of residents of HOAs have stated that their experience in this association has been ‘very good’ or ‘good’. Almost 90% feel that their governing body acts in their best interests, and some 74% say their community managers are supportive and helpful. Around 71%, meanwhile, say that their community rules improve their property values. The downsides of belonging to an HOA are few, report home dwellers, but they do occasionally exist. Those who take on the role of board members, for instance, may find that residents have unrealistic expectations regarding rules and regulations or changes they wish to adopt or effect. The norms surrounding HOA board members harassment are clearly defined, though. They include writing a letter to the relevant homeowner/s, opting for mediation via the association’s management company, and, in a worst case scenario, involving the police.
Reasons For The HOA Boom
The main reasons for the rising popularity of HOAs are their comfort and convenience. Most condominiums, for instance, are located close to city centers, schools, and public transport. They additionally provide shared amenities such as gyms, pools, security, and the like, with expenses being shared by members. The National and State Statistical Review for Community Association Data, meanwhile, shows that HOAs enable municipalities to impose obligations on homeowners – including those covering recycling, snow removal, and sidewalk and street maintenance.
Where Are Most HOAs Located?
Research published by Wyatt Clarke and Matthew Freedman shows that HOAs with the biggest premiums tend to be located in the South and West, with smaller premium states existing in the Midwest and Northeast. Clarke and Freedman found that HOA are more likely to be white or Asian, and less likely to be black or another race. They also tend to be richer, leading the researchers to conclude that the demand for HOAs is partly driven by a desire for exclusion, and partly by weak government. HOAs, they state, is a form of ‘private government’ that is more popular in areas with lower taxes, lower government spending, and less land use regulation.
HOAs are booming, with premiums being higher in the South and West than in other areas. The convenience and ability to access a wide array of amenities are just two reasons for this growth. HOAs are also more popular in zones with lower taxes and weaker government, since they enable homeowners to fill in possible gaps in governmental regulations.
Categories: Home & GardenLife