When you're in the market for a new home, it’s easy to focus on mortgage rates, home prices, your down payment, and closing costs. However, you might overlook homeowners association (HOA) fees. While these fees aren’t a given, they can come into play depending on the community you choose to settle in.

A homeowners association, or HOA, is an organization that manages a residential community, including common areas, and establishes rules for maintenance and upkeep. Some buyers appreciate the advantages that come with being part of an HOA, while others view the fees as an additional cost. It’s important to understand what the HOA covers and determine if the benefits are worth the expense for you.

Why an HOA Can Be a Great Asset to Your Community

If you've found yourself smitten with a home thanks to the stunning community—perhaps it's the lush landscaping, tidy streets, or the general charm—there’s a strong chance that the homeowners association (HOA) plays a key role in keeping things looking sharp. Here are some of the major benefits:

• Keeping the Neighborhood Looking Good: One of the nice things about an HOA is that they often take care of things like landscaping, snow removal, and keeping common areas tidy. It really helps the whole neighborhood stay clean, neat, and welcoming.

• Extra Perks That Make Life Easier: Depending on where you live, your HOA might give you access to things like a pool, gym, clubhouse, or even private security. Sure, there’s a monthly fee, but it can actually save you money—you might not need that separate gym or pool membership anymore.

• Protecting Your Home’s Value: One big plus of an HOA is that they help keep everyone’s property in good shape by enforcing certain rules. That means you won’t have to worry about a neighbor’s rundown house dragging down your home’s value.

• Less Work for You: In some neighborhoods, the HOA handles things like exterior maintenance, roof repairs, or other shared upkeep. So, there’s less on your plate as a homeowner—which means more free time and fewer weekend chores.

HOA Fees: Pretty Normal These Days, Especially in Newer Communities

Not every house has HOA fees. While they aren't universal, they are quite common, particularly in newer neighborhoods. In fact, the Wall Street Journal reports that more than 80% of newly constructed single-family homes are now part of an HOA.

It's not only new constructions that come with homeowners associations; even previously occupied homes can have an HOA fee. In fact, Axios reported that around 40% of homes had an HOA in 2024.

HOA Fees and Your Home Search

Ask your agent about which homes have HOA fees and which don't as you search for a property. Also, find out how much those fees are. Some neighborhoods charge quarterly, some monthly, and a few have no fees at all. As a reference point, the median HOA fee climbed to $125 per month last year, according to a report from Realtor.com.

The costs can differ, and in some cases, these fees provide valuable benefits. As Danielle Hale, Chief Economist at Realtor.com, points out:

““When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”
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— Danielle Hale, Chief Economist at Realtor.com

Bottom Line

Before you purchase a home in a community with a homeowners association (HOA), it's smart to take a look at the rules and fees. This way, you'll understand what’s included, how it fits into your overall budget, and any restrictions that might come with living there.

Would you prefer to pay an HOA fee for extra benefits, or would you rather not pay it and have complete control over your property? Let’s discuss what might work best for you.