Before buying into a homeowners association, understanding rules, fees, and community dynamics is key to a positive ownership experience.
Community associations — homeowners associations (HOAs), condominiums, co-ops, and mixed-use communities — offer amenities and services that many buyers value. Today, 77.1 million Americans live in 369,000 community associations, representing 33.6% of U.S. housing with a combined home value of $12.9 trillion, according to the Foundation for Community Association Research’s 2024 U.S. National and State Statistical Review.
Many HOAs provide features such as pools, playgrounds, walking trails, lakes, and professional security, all luxuries often unattainable for individual homeowners. Associations also help maintain property values by enforcing community standards and protecting against neighborhood deterioration.
However, while HOAs bring benefits, challenges can arise from misunderstandings or unrealistic expectations. Doing your homework before buying can help ensure a positive experience.
What you need to know
If you’re considering a home in an HOA, ask your real estate agent for copies of the governing documents, especially the Covenants, Conditions & Restrictions (CC&Rs). These outline rules on assessments, home modifications, landscaping, parking, pets, and more. If anything is unclear, consult your agent or an attorney.
Talk to current residents about their experiences with the HOA. Consider speaking directly with a board member or the community manager to understand how the association operates.
Assessments: your fair share
HOA assessments — mandatory monthly, quarterly, or annual dues — fund shared services like trash collection, landscaping, snow removal, and maintenance of common areas. Some even include exterior upkeep of homes.
Review the HOA’s budget to see what assessments cover and whether there’s a reserve fund for major repairs. Without reserves, you could face special assessments for projects like roof replacements or road resurfacing.
Embrace your community
Community associations are designed to bring neighbors together and preserve the quality of life for everyone. While every community has rules and policies, these standards help maintain property values and create a welcoming, well-kept environment.
As a homeowner, you can play an active role in shaping your neighborhood’s future. Attend meetings, join a committee, or consider running for the board. Getting involved not only strengthens your connection to the community but also ensures it remains a place you’re proud to call home.
Download CAI’s First-Time Homebuyers Guide to HOAs for a complete checklist and resources.
