Understanding HOA Fees: What Every Homebuyer Should Know

When you’re buying a home, your focus is likely on mortgage rates, prices, your down payment, and closing costs. But don’t overlook one key factor that could impact your monthly expenses: HOA fees.

You might not encounter them in every neighborhood, but in many communities—especially newer ones—homeowners association (HOA) fees are common. These fees help maintain shared spaces and enforce neighborhood standards. For some buyers, the perks are worth it. For others, they may feel like an extra cost. The important thing is knowing what they cover—and if those benefits are worth it to you.

Why Some Buyers Appreciate HOAs

If you’ve ever admired a beautifully maintained neighborhood—with clean streets, lush landscaping, and attractive amenities—there’s a good chance an HOA played a role. Here’s what those fees may go toward:

• Community Upkeep: Many HOAs handle landscaping, snow removal, and maintenance of shared areas.
• Amenities Included: Pools, gyms, clubhouses, or private security are often part of the package—saving you money elsewhere.
• Property Value Protection: By enforcing standards, HOAs help keep neighboring homes in good shape, which protects your investment.
• Less Work for You: In some communities, exterior repairs or shared maintenance tasks are handled by the HOA.

HOA Fees Are More Common Than You Think

Not every home has HOA fees—but they’re becoming increasingly standard. In fact, over 80% of newly built single-family homes are now part of an HOA (per the Wall Street Journal). So, if you're looking in a newer community, it’s likely something you’ll need to consider.

HOA Fees Aren’t Just for New Construction It’s not only brand-new homes that come with HOA fees. Many resale homes—those previously lived in—are also part of homeowners associations. In fact, according to Axios, around 40% of all homes in 2024 were in HOA communities.

HOA Fees and Your Home Search

As you explore properties, make sure to ask your agent which homes do—or don’t—include HOA fees, and how much those fees run. Some communities charge dues monthly, others quarterly, and some may not have fees at all. To give you a general idea, Realtor.com reports that the median HOA fee in the U.S. rose to $125 per month last year.

But cost is only part of the equation.

As Danielle Hale, Chief Economist at Realtor.com, puts it:

“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.”

Bottom Line

Before you buy a home in a community with an HOA, take the time to carefully review the association’s rules, fees, and what services are covered. It’s important to understand how those costs fit into your monthly budget and what kinds of restrictions or responsibilities come with living there.

Ask yourself this: would you prefer paying an HOA fee in exchange for added convenience and shared amenities, or would you rather skip the fee and maintain full control over your property and its upkeep?

Either way, it’s a personal decision—and a local agent can help you weigh the pros and cons so you find the right fit for your lifestyle and financial goals.