HOA Fees Explained: What You’re Paying For (and Why)

When you’re buying a home, there’s a lot on your mind — from mortgage rates and home prices to your down payment and closing costs. But there’s another important detail that often gets overlooked:
Homeowners Association (HOA) fees.

While not every home has them, HOA fees are common — especially in newer communities. And depending on where you’re looking, they might be part of your monthly budget. So, before you fall in love with a property, it’s smart to understand how HOA fees work and what they actually cover.

What Is an HOA?

A homeowners association (HOA) is a group that manages and maintains a neighborhood or housing community. They’re responsible for setting and enforcing rules, maintaining shared spaces, and keeping things looking great.

For some buyers, the added structure and upkeep are a major bonus. For others, the fees might feel like just another expense. The key is to weigh the value of what you’re getting.

The Benefits of Living in an HOA Community

Ever noticed how some neighborhoods always look clean, well-landscaped, and beautifully maintained? There’s a good chance an HOA is behind that. Here are a few common perks:

• Neighborhood Maintenance: Landscaping, snow removal, and common area upkeep are often covered — keeping your community looking sharp.
• Amenities: Some HOAs offer access to pools, clubhouses, gyms, parks, or even private security — all included in your fee. You might save money by skipping separate memberships.
• Protecting Property Values: HOAs set community standards, helping prevent nearby homes from falling into disrepair and hurting your home’s value.
• Less Personal Upkeep: In some communities, the HOA may cover exterior maintenance, roof repairs, or other shared responsibilities — reducing your to-do list as a homeowner.

How Common Are HOA Fees?

Not every home comes with an HOA, but they’re becoming more common — especially in newer developments.

According to the Wall Street Journal, over 80% of newly built single-family homes are part of an HOA.

And it’s not just new homes. A recent Axios report found that roughly 4 out of every 10 homes across the U.S. had an HOA in 2024.

What Do HOA Fees Cost?

HOA fees vary widely depending on the community, amenities, and services provided. Some are charged monthly, others quarterly.

As a reference point, Realtor.com reports that the median HOA fee was $125 per month last year — but again, that number can go higher or lower depending on the area.

That’s why it’s important to ask your agent which homes in your search have HOA fees, and how much they are.

Should You Buy in an HOA Community?

Here’s what Danielle Hale, Chief Economist at Realtor.com, says:

“When considering a home with an HOA, buyers should work to understand what benefits it provides… and how the HOA fees factor into their overall budget.”

In other words — look at both the cost and the value.

Bottom Line

If you're considering a home in an HOA neighborhood, be sure to:

• Review the HOA rules and what’s included
• Factor the fee into your monthly budget
• Think about whether the amenities and services align with your lifestyle

Would you rather pay an HOA fee for added perks and lower upkeep?
Or would you prefer full control over your property without the extra cost?

Let’s talk about what makes the most sense for you. We can help you explore both options and find the right fit for your needs and budget.