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Comprehensive HOAs Statistics and Trends Report for 2023

KRJ Management

Introduction

Welcome to the definitive guide on Homeowners Associations (HOAs) in the United States for 2023. At KRJ Management, we understand the importance of staying informed about the latest trends and statistics in the HOA industry. Whether you’re a homeowner, a property manager, or simply curious about HOAs, this report will provide you with invaluable insights into the current landscape of HOAs in the United States.

General HOA Statistics

Let’s start by delving into some key general statistics surrounding HOAs based on data compiled up to 2021:

1. HOA Neighborhoods

  • HOAs managed an impressive 358,000 U.S. neighborhoods as of 2021┬╣.
  • A staggering 74.2 million U.S. residents called an HOA community home as of 2021┬╣.

2. HOA Community Composition

  • In 2021, approximately 29% of the entire U.S. population resided in an HOA community┬╣.
  • Condominium community associations made up 35% to 40% of all homeowners associations in 2021┬╣.
  • Single-family homes and townhomes within HOAs accounted for 58% to 63% of all broader homeowner community associations in the United States as of 2021┬╣.

3. Property Values

  • As of 2021, the combined property value of homes within HOA communities reached a staggering $11 trillion┬╣.

4. HOA Board Members

  • In 2021, there were 2.5 million U.S. homeowners actively serving as HOA board members or committee members┬╣.

5. Cooperative Communities

  • Cooperative housing communities, often known as co-ops, comprised 2% to 4% of all community associations in America in 2021┬╣.

6. Housing Units

  • In 2021, the United States had 27.7 million housing units, reflecting an increase of 200,000 from the previous year┬╣.

HOA Industry Statistics

The HOA industry is a thriving sector, and understanding its dynamics is crucial. Here are some industry-specific statistics based on data from 2021:

1. Property Management

  • Property management companies were responsible for overseeing 60% to 70% of all HOAs┬╣.

2. Community Association Managers

  • The United States had an estimated 55,000 to 60,000 community association or homeowners association managers in 2021┬╣.

3. Large-Scale HOAs

  • Out of the 350,000+ HOAs in the United States, 6,000 to 9,000 were classified as large-scale HOAs┬╣.
  • Large-scale HOAs managed neighborhoods with more than 1,000 lots or an annual budget exceeding $2 million┬╣.

4. Employment

  • The number of employees in HOA management companies ranged from 100,000 to 105,000 in 2021┬╣.

5. Financial Overview

  • In 2021, community HOAs collected a total of $106.4 billion in assessments from homeowners┬╣.
  • Out of this, $26.6 billion was allocated for future repairs and upgrades, focusing on common property like roofs, roads, and community amenities┬╣.

HOA Geographical Statistics

The prevalence of HOAs varies by region and state. Here’s a closer look at the geographical distribution based on 2021 data:

1. Leading in Numbers

  • California boasted the highest number of HOAs with 50,010, accompanied by the most residents living in HOA communities, totaling 14.3 million┬╣.

2. High Prevalence

  • In 2021, Florida had the highest percentage of residents living in HOA communities at 45.6%┬▓.

3. Lowest Prevalence

  • Arkansas had the lowest percentage of residents belonging to homeowners’ associations, standing at just 2.1%┬▓.
  • South Dakota recorded the fewest homes within HOAs┬▓.

HOA Financial Statistics

Understanding the financial aspects of HOAs is crucial. Here are some financial statistics:

1. Rising Expenses

  • In a survey conducted in March 2023, 91% of HOA board members and community association managers reported unexpected expense increases due to rising maintenance costs and inflation┬│.

2. Assessments Increase

  • To cope with rising costs, 73% of surveyed community association managers and board members planned to increase assessments in 2023┬│.
  • A substantial 87% of property management companies managing HOAs also planned to raise fees in 2023┬│.
  • Additionally, 71% of surveyed property management companies intended to raise fees by up to 10% in 2023┬│.

3. Monthly HOA Fees

  • The mean monthly HOA fee in 2021 stood at $191Ôü┤.
  • With 27.7 million housing units within HOA communities, U.S. HOA members collectively paid an estimated $5.29 billion in monthly dues in 2021Ôü┤.

HOAs and New Construction Homes

Newly constructed homes often come with HOA affiliations. Here’s a look at the intersection of HOAs and new construction homes:

1. Secured Communities

  • Approximately 12 million U.S. housing units, constituting 10% of all housing units, were in communities secured by fences or walls in 2021Ôü┤.

2. Increasing Prevalence

  • In 2021, a significant 78% of newly constructed single-family homes built for sale were part of an HOA communityÔüÁ.
  • This marked an increase from 2011 when 64% of newly constructed homes for sale were within HOA communitiesÔüÁ.

3. Regional Trends

  • In 2021, the South led the nation in new HOA-controlled homes, with 82% of its new single-family homes situated within HOA communitiesÔüÁ.
  • By contrast, only 40% of new homes constructed by individual homeowners or contractors were in HOA-controlled communitiesÔüÁ.

Conclusion

In conclusion, Homeowners Associations continue to shape the residential landscape in the United States. These statistics paint a clear picture of their prevalence, financial dynamics, and regional distribution. Whether you’re considering moving into an HOA community or managing one, understanding these trends is essential for making informed decisions.

At KRJ Management, we prioritize transparency and empower homeowners and property managers with valuable insights. If you have any questions or need further information, feel free to reach out to us. We’re here to assist you in navigating your HOA effectively.

Sources

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