HOA Fees on the Rise as Associations Cover a Larger Share of U.S. Homes

For homebuyers in 2026, there’s a growing reality that’s difficult to ignore: homeowners associations are everywhere and they’re getting more expensive.

According to new analysis from Realtor.com, the share of homes listed for sale that come with HOA fees continued to climb through 2025, along with the cost of those fees. What was once a feature largely associated with condos and gated communities is now a defining part of the broader U.S. housing market.

For many buyers, the question is no longer whether a home has an HOA but how much it will add to the monthly budget.

HOA Presence and Costs Keep Climbing

Realtor.com’s data shows a steady, multi-year expansion in HOA coverage across the housing market.

Here are the most important findings:

• 43.6% of U.S. homes for sale now have a non-zero HOA fee
• That’s up from 41.9% in 2024 and 34.3% in 2019
• The median monthly HOA fee rose to $135, up from $125 last year
• HOA fees have increased nearly 25% since 2019
• HOAs are permitted in all 50 states and Washington, D.C.

The growth isn’t subtle—it’s structural.

What HOAs Provide—and What They Cost

Homeowners associations manage and govern residential communities. Membership is mandatory when buying a home within an HOA-governed development.

In return, homeowners often receive access to:

• Pools and clubhouses
• Landscaping and exterior maintenance
• Security services
• Private roads and shared infrastructure

But these services come with a recurring cost monthly dues that are separate from mortgage, taxes, and insurance.

As housing affordability tightens, those additional monthly obligations are becoming a more significant factor in purchase decisions.

Have you noticed how HOA fees can quietly rival property tax bills in some communities?

Single-Family Homes Are Increasingly Part of the HOA Story

HOAs are no longer just a condo phenomenon.

Realtor.com found that:

• 33.4% of single-family homes now have HOA fees
• 84.8% of condos and townhomes are subject to HOAs
• Both shares are rising

Single-family homes with HOAs tend to be larger and more expensive than those without:

• Median size: 2,306 sq. ft. with HOA vs. 1,818 without
• Median price per square foot: $216.76 vs. $205.10

For condos, size differences are minimal but HOA properties still command a higher price per square foot.

This suggests buyers are paying both upfront and monthly for managed communities.

Do HOA Fees Slow Down Home Sales?

Interestingly, HOA status didn’t significantly impact how long homes stayed on the market in 2025—at least at the national level.

That finding suggests buyers are increasingly accepting HOAs as normal, particularly in markets where alternatives are limited.

In many regions, avoiding an HOA now means sacrificing:

• Location
• Newer construction
• Amenities
• Inventory options

Is the tradeoff worth it? For many buyers, the market is making that decision for them.

New Construction Is Driving HOA Growth

One of the strongest drivers of HOA expansion is new construction.

Realtor.com found that:

• 67.9% of new-build listings have HOAs
• Only 38.9% of existing homes do
• But the share of existing homes with HOAs is rising faster

This shift reflects the housing boom of 2020–2022, when developers heavily favored HOA-governed communities. As those homes age and resell, they’re flowing into the existing-home market—bringing HOA obligations with them.

In short, yesterday’s new builds are today’s resale homes, and the HOA footprint is expanding as a result.

Why Age of the Home Matters

The price difference between HOA and non-HOA homes is especially pronounced among existing homes, and age plays a major role.

According to Realtor.com:

• The average existing home with an HOA was built in 1998
• The average existing home without an HOA was built in 1968

That 30-year gap matters.

Newer homes typically feature modern layouts, updated systems, and planned communities all of which command higher prices. In 2025:

• Median price of existing homes with HOA: $450,000
• Median price of existing homes without HOA: $374,900

HOAs aren’t just adding fees they’re closely tied to newer, higher-priced housing stock.

Big Regional Differences Across the U.S.

HOA prevalence varies dramatically by state and region.

Highest HOA share:

• Nevada — 68.3% of listings subject to HOA fees

Lowest HOA share:

• South Dakota — just 12.3%

Nevada’s high share reflects its large concentration of condos and new construction, while South Dakota’s housing stock skews older and more rural.

Regionally:

• The West and South have the highest HOA concentrations
• Those same regions have seen the largest post-pandemic increases
• High levels of new construction are the common denominator

If you’re shopping in the Sun Belt, the odds are increasingly stacked toward HOA living.

What This Means for Homebuyers

For buyers, HOA fees are now a core affordability variable not a footnote.

Monthly dues can:

• Reduce mortgage qualification amounts
• Push total housing costs above comfort levels
• Increase long-term ownership expenses

Buyers should evaluate HOAs carefully:

• What services are included?
• How often do fees rise?
• Are special assessments common?

A lower purchase price can be misleading if HOA dues escalate quickly.

What This Means for Investors

For investors, rising HOA prevalence is a double-edged sword.

On the positive side:

• HOAs can preserve property values
• Maintenance responsibilities are often reduced

On the downside:

• HOA fees cut into cash flow
• Rental restrictions may apply
• Special assessments create risk

In markets where nearly half of listings carry HOA fees, investors must underwrite with greater precision.

The Bigger Picture: HOAs Are Now a Structural Feature

The growth of HOAs isn’t a short-term trend it’s the result of decades of development patterns, zoning rules, and municipal cost-shifting.

As local governments push infrastructure and maintenance responsibilities onto private associations, HOAs become the default model for new housing.

That means:

• More predictable community standards
• Higher ongoing costs for homeowners
• Fewer non-HOA options over time

For many buyers, the choice isn’t HOA vs. no HOA—it’s which HOA.

Conclusion: HOA Fees Are Part of the New Housing Math

Homeowners associations now govern nearly half of the U.S. housing market, and their monthly fees are steadily rising. While HOAs offer amenities and structure, they also add a permanent layer of cost that buyers can’t ignore.

At Nadlan Capital Group, we believe understanding total housing cost not just the purchase price is essential in today’s market. HOA dues, like taxes and insurance, can shape long-term affordability just as much as interest rates.

Do you think HOAs provide enough value to justify rising fees or are they becoming another affordability hurdle? Let us know what you think and stay connected with Nadlan Capital Group for clear, practical insights into today’s housing market.