From the Daily Dose
HOA Fees Outpace Home Prices
Homeowner Association fees (HOA) have risen across the nation, even outpacing inflation, according to a report from Trulia. The average monthly HOA in 2005 was $250, but by 2015, that number grew to $331, outpacing both national housing prices and inflation. HOA fees are primarily used to help cover the cost of maintaining community common spaces such as pools and landscaping. This can include both multi-family homes and single-family houses in a community.
Trulia notes that the financial crisis did not do much to slow the rising HOA fees, even in the face of dropping home prices. Trulia’s data attempts to identify what kind of properties are likely to have high HOA fees.
Using data from the U.S. Census, Trulia found that HOA fee increases outpaced home prices. Between 2005 and 2015, HOA fees rose 32.4 percent, while the median home price rose only 15.1 percent. HOA fees are particularly higher in older buildings. HOA fees for homes built in 2005 or later were, on average, $90 cheaper than homes built between 1960 and 1969. Smaller homes also tend to have smaller HOA fees, and data shows that an additional bedroom could mean $30 more per month in HOA fees.
Trulia links the rising cost of HOA fees to aging homes. The average age of buildings occupied by homeowners is 5 years older than it was in 2005, 36 years compared to 41 years. As buildings got older, HOA fees rose, even throughout the recession.
Trulia looked at the largest metros to see where HOA fees differ. New York took the top spot, with average HOA fees averaging $571 per month. Nashville, Tennessee enjoys the cheapest average HOA fees, averaging $194 per month, closely followed by Las Vegas at $198 per month.
By metro, HOA fees increased the most in the Virginia Beach, Virginia area, between 2005 and 2015, jumping up 75.4 percent. Though New York may have the highest HOA fees, it saw the least change, as average HOA fees only increased 12.8 percent in that time.
Read all of what Trulia has to say here: https://www.trulia.com/blog/trends/hoa-fees/