What Are the Pros and Cons of HOA Living in 2024?

If you’re looking for a new home, chances are you’ve come across one that’s a part of an HOA (homeowners association) community. These communities are becoming more popular, especially in newly built areas. In fact, as of 2022, 84 percent of newly constructed homes were part of HOA communities. So if you’ve found your dream home and it’s a part of an HOA, will it make sense for you to purchase it? There are lots of pros and cons of HOAs, and knowing as much as you can about them before you sign the contract is essential.

HOA FAQs

If you’ve come across homes for sale in HOA communities, you may have some questions about what exactly an HOA is and whether or not you’re interested in pursuing a home in an HOA community. Here are some of the top frequently asked questions about homeowners associations. 

Q: What Is an HOA?
A: HOA stands for homeowners association, and it’s an organization made up of community members that have jurisdiction over a planned community, condo, or subdivision. HOA board members are responsible for making and enforcing rules in the best interest of the community that every member is required to follow. And HOAs collect fees from the members to pay for maintenance and upkeep of the areas. When you purchase a home or a condo in a community with a governing HOA, you automatically become a member of the HOA.

Q: How Much Are HOA Fees?
A: One thing in common with all HOAs — whether it’s a subdivision, a condo building, or a townhouse community — is the obligation for each member to pay dues. While it may seem silly to have to pay an additional fee on top of all your other bills, that money goes toward the upkeep and repairs for common spaces — such as lobbies, tennis courts, pools, and community centers — and some services — such as trash pickup, landscaping, and snow removal. How much you’ll be required to pay depends on:

• The location of your property (large city vs. smaller suburb)
• How many properties are in the community
• The type of property (single-family home vs. condo)
• The amount of amenities available
• The operating expenses

HOA fees can vary. They can range anywhere from $100 to $1,000, and they can be assessed monthly or at certain times of the year (such as quarterly). Typically, they fall between $200 and $300 each month. The general rule of thumb, though: The more services and amenities your community offers, the higher the HOA fees will be.

You’ll also find higher HOA dues in areas with a high cost of living (especially in large cities such as NYC and Los Angeles), where maintenance and repairs come with a higher price tag than the national average. Multi-story condo units may also have higher HOA fees because those fees go toward paying for heating and electricity in common shared spaces.

Q: Why would you ever live in an HOA? A: People enjoy living in HOA communities because their property values stay high, the neighborhood looks nice, and they have access to community amenities such as pools, fitness centers, and walking trails.

Q: Can You Refuse To Join a Homeowners Association?
A: If the house you’re interested in buying is already a part of a community governed by an HOA, you likely cannot refuse to join the homeowners association. By purchasing the home, you are in effect agreeing to the HOA’s covenants, conditions, and restrictions (CC&Rs). 

However, if you purchase a house in a neighborhood where there is no HOA, and the residents later try to form one, they cannot force you to join it. Similarly, there are some communities with HOA rules that specifically state that membership is voluntary, so definitely look into that if you don’t want to be a part of an HOA. 

Q: Why Are HOAs So Powerful?
A: HOAs have a lot of authority because they essentially act as a local governing body. Although the CC&Rs and bylaws specific to the community are in addition to local or city ordinances, by purchasing a home in an HOA community, you are agreeing to those rules. They can include what colors you can use to paint your house, where you can park, noise regulations, visitor policies, moving truck instructions, and even the amount of pets you can have. HOA rules vary according to each community and the state they’re in, though.

Pros and Cons of HOAs

There is a lot of information out there on HOA pros and cons, and it’s always helpful to get a grasp of both sides before making a final decision about a purchase. Here are some of the most prominent pros and cons of HOA living to give you a broader perspective so you have all the information you need to decide whether an HOA community is right for you.

What Are the Positives About HOAs?

HOAs have a lot of advantages when they’re run by engaged community members who work in the best interests of residents.

1. HOAs help to maintain property values.

One of the major reasons the country has seen a rise in HOAs is because they are successful at maintaining property values for homeowners. A lot of their regulations are focused on the outside appearance of the homes, ensuring that they’re properly maintained in order to keep curb appeal high. And by holding all members of the community to the same standards and making sure that fees are used appropriately for maintenance, each area remains desirable.

2. They help foster a sense of community.

How great would it be if you lived in an area where you regularly saw your neighbors, and members of the board of directors of the HOA were your friends? Fostering a sense of community is what HOAs are all about. They use the fees they collect to maintain and enhance community shared spaces, whether that’s fitness areas, pools, community centers, or trails around the areas. And they often host community events such as BBQs, movie nights, or holiday parties. 

Q: What are positives about HOAs? A: HOA pros include stable property values, safe communities, and convenient amenities.

3. HOA rules help to deter nuisance behavior.

Folks who live in an HOA community are all held to the same rules outlined in the CC&Rs and bylaws. This means that everyone will have to obey regulations surrounding noise, parties, parking, and upkeep of the exterior of their homes. In traditional neighborhoods, these kinds of issues can turn into problems between neighbors if left unresolved. And if the rules aren’t enough to deter offenders? HOAs are allowed to impose fines until the issues are remedied. 

4. HOAs often provide convenient amenities.

Having nearby access to a variety of extras is what draws a lot of people to HOAs. Many of these communities offer shared spaces — meaning residents only, plus their guests — including pools, tennis courts, playgrounds, trails, and fitness centers. You don’t have to drive all over town to find these kinds of amenities with an HOA, and you can take advantage of them without having to leave the neighborhood!

5. The rules help with safety measures in the area.

Some HOAs offer an extra safety feature: gated communities. Only residents can open the gates, and some have guards — in person or virtual — in place to verify non-residents who want to gain access. Not all HOAs are gated, but they all do often have restrictions when it comes to who can use the facilities, what type of gatherings residents can have, and how many people can stay overnight. It makes residents feel safer knowing that there are rules concerning who can be on the property and when. 

What Are the Disadvantages of HOAs?

Of course there are also some cons to living in an HOA community that you will have to be okay with if you want to reside there.

1. HOA fees must be paid.

All HOAs operate by collecting fees from residents. This is in addition to your mortgage and any other bills that you are responsible for on a regular basis. The fees can vary widely depending on the type of property, your location, and how many amenities your community has, but they’re typically in the range of $200-$300 per month. The money collected is handled and dispersed for maintenance and upkeep projects by the HOA board of directors, who are elected to enforce the rules and regulations. 

An extra fee every month may cause some homeowners to feel the pinch in their wallet, especially if they don’t feel like the board is using their money wisely. The HOA is designed to use the money in the best interest of the entire community, but some residents may not be pleased with the projects they decide to fund. 

2. You’ll risk foreclosure if the fees aren’t paid.

Your HOA’s CC&Rs may state that they have the power to pursue foreclosure on your home should you not pay your fees, fines, or adhere to community standards for your home. This varies according to the state and the actual bylaws of your particular HOA. Foreclosure is usually a last resort, but you should still be aware that HOAs can have the power to do that.

Q: What are the disadvantages of an HOA? A: Some of the biggest disadvantages of an HOA are the monthly fees, restrictions, and rules you are required to follow.

3. HOAs can be mismanaged.

Why are HOAs bad? HOAs can be frustrating when they are mismanaged by unqualified people on the board. Inefficient management can cause resentment among residents, as they wonder what their fees are being directed toward. Since every board is made up of actual residents of the community, it’s important that those who are elected are held accountable for their actions, or lack thereof. HOAs with high community engagement are more likely to hold leaders responsible. 

4. Some homeowners find the rules restrictive.

If you love making your house a reflection of your personality, then perhaps an HOA may not be for you. For instance, there may be HOA rules pertaining to the exterior appearance of all the houses in order to increase curb appeal and create a sense of continuity. Some residents may find that being told what colors you can and cannot use on your house, what types of flowers you can plant, whether or not you can build a fence, etc., can cause feelings of resentment. HOAs have these rules to keep the quality of life high and the area safe, but they may be too restrictive for some. 

5. You can be charged assessments in addition to HOA fees.

In addition to your regular dues, HOAs have the right to charge assessments if they do not have the money from fee collection to cover a project or unforeseen event. An assessment is a one-time (hopefully not more) additional fee that all residents have to pay in order to make up the difference and cover the necessary funds that the HOA currently does not have.

Unenforceable HOA Rules To Look Out For

Additionally, if you want to move into an HOA area, you should know about unenforceable rules. These are HOA rules or bylaws that counter federal or state law, or are enforced inconsistently. If you think one of your HOA rules is unenforceable, you may be able to fight it. Some of these unenforceable HOA rules include:

• Rules enforced without authority
• HOA rules enacted without a majority vote
• Rules that promote discrimination
• Unreasonable restrictions

The Pros and Cons of HOAs — Recap

With the increase of HOA communities in the past few years, it seems highly likely you may find a home you’re interested in that’s part of one. Knowing the pros and cons of HOAs can make the decision to join one or not a little easier. Here’s a recap of what we’ve discussed.

Moving With PODS Into an HOA Community

If you’re ready to make the move to an HOA community, consider using a PODS portable storage container. Make sure you clear it with your HOA first, though, to ensure having a portable storage container in your new driveway or on the street won’t be an issue. 

How does PODS work? They will deliver the container to your current house or apartment so you can pack everything up on your schedule. Then a PODS driver will pick it up and deliver it to your new community so you can unload at your leisure and begin to enjoy your new home and neighborhood!