1. 40.5% of homes for sale had HOA fees in 2024. 2. Median HOA dues increased from $110 to $125 monthly. 3. 69.9% of new builds had HOA fees, versus 37.1% for existing homes. 4. Condos have higher HOA dues at 83.8% compared to single-family homes at 33.6%. 5. Desirable locations, like beach areas, see higher HOA costs.
While rising HOA fees can influence home buying trends, NWS operates in diverse markets. Past examples show variable regional impacts on home prices due to local HOA dynamics.
The article sheds light on housing trends that could affect NWS's real estate arm, Realtor.com. However, the broader implications on stock price are moderate.
Rising HOA fees may impact buyer sentiment soon, but long-term implications remain uncertain. Similar influences were seen during the 2008 financial crisis, affecting buyer behavior temporarily.
SANTA CLARA, Calif., Jan 15, 2025 /PRNewswire/ -- As Americans grapple with housing affordability challenges, one more housing cost is on the rise, Homeowners Association (HOA) fees. According to a new report from Realtor.com® released today, more homes on the market last year had an HOA fee and those fees were more costly than the year before. When looking at monthly HOA fees shown on listings on Realtor.com®, 40.5% of for-sale listings in 2024 had a nonzero HOA fee, up from 39.2% last year with a median fee of $125/month, up from $110.
"With a down payment and closing costs up front, and then principal, interest, taxes, and insurance every month after that, purchasing a home is already a financially daunting task, before adding in the rising cost of HOA dues," said Danielle Hale, chief economist at Realtor.com.® "Homes like condos, townhouses and new construction single family homes in neighborhoods with ample amenities are more likely to have an HOA fee. For many of these properties, HOA benefits often include a certain amount of maintenance and even utilities that homeowners without an HOA will need to include in their budget. 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."
Newly constructed homes are much more likely than existing homes to be subject to HOA dues. Among homes for sale on Realtor.com® in 2024, 69.9% of new builds came with a monthly obligation to the homeowners' association compared to 37.1% of existing homes.
Much like the splits between new construction and existing homes, HOA dues are much more widespread among condo, rowhome, and townhome listings (from here on referred to collectively as condos) than single family homes. 83.8% of condos for sale in 2024 had HOA dues associated, while just 33.6% of single family homes did.
Areas with a high concentration of new construction or a high concentration of condo units, especially in desirable beach or ski markets. Below are the ten metropolitan areas with the highest share of for-sale listings subject to HOA dues.
| Metro Area | Share of Listings with HOA | Median Monthly HOA Dues |
|---|---|---|
| Edwards, Colo. | 89.9 % | $525 |
| Myrtle Beach-Conway-North Myrtle Beach, S.C. and N.C. | 84.8 % | $138 |
| Heber, Utah | 83.3 % | $300 |
| Lakeland-Winter Haven, Fla. | 79.7 % | $78 |
| Orlando-Kissimmee-Sanford, Fla. | 78.4 % | $164 |
| Boise City, Idaho | 77.6 % | $54 |
| Las Vegas-Henderson-Paradise, Nev. | 77.1 % | $118 |
| Jackson, Wyo. | 77.0 % | $250 |
| Houston-The Woodlands-Sugar Land, Texas | 76.8 % | $67 |
| North Port-Sarasota-Bradenton, Fla. | 76.0 % | $310 |
Smaller markets with fewer newly-built homes and condos, mostly in further inland markets. Below are the 10 metropolitan areas with the lowest share of for-sale listings subject to HOA dues.
| Metro Area | Share of Listings with HOA | Median Monthly HOA Dues |
|---|---|---|
| Anniston-Oxford, Ala. | 3.8 % | $29 |
| Elizabethtown-Fort Knox, Ky. | 5.0 % | $19 |
| Jonesboro, Ark. | 5.3 % | $36 |
| Monroe, La. | 5.8 % | $30 |
| Huntington-Ashland, W.Va., Ohio, Ky. | 6.1 % | $25 |
| Albany-Lebanon, Ore. | 6.2 % | $33 |
| Merced, Calif. | 6.2 % | $137 |
| Ukiah, Calif. | 6.5 % | $131 |
| Vineland-Bridgeton, N.J. | 6.8 % | $77 |
| Orangeburg, S.C. | 7.1 % | $104 |
To read the full report and learn more: www.realtor.com/research/homeowners-associations-2024
This report aggregates weekly snapshots of all for-sale listings in the United States on Realtor.com in 2024 and in 2023 for year-over-year comparison. Listings are considered to be subject to an HOA if they have a monthly HOA fee greater than zero dollars published on them. Median monthly HOA dues calculations for a given geography or listing segment include only nonzero HOA dues (i.e. listings without HOA dues are not included as zeroes). The terms "HOA fees" and "HOA dues" are used interchangeably here.
Realtor.com® is an open real estate marketplace built for everyone. Realtor.com® pioneered the world of digital real estate more than 25 years ago. Today, through its website and mobile apps, Realtor.com® is a trusted guide for consumers, empowering more people to find their way home by breaking down barriers, helping them make the right connections, and creating confidence through expert insights and guidance. For professionals, Realtor.com® is a trusted partner for business growth, offering consumer connections and branding solutions that help them succeed in today's on-demand world. Realtor.com® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. For more information, visit Realtor.com®.
Media contact: Mallory Micetich, [email protected]
SOURCE Realtor.com