Is an HOA Worth It? Here’s What Buyers Need To Consider

HOA Fees: What You Need To Know Before Buying a Home

When you’re house hunting, you’re probably focused on mortgage rates, down payments, and closing costs. But there’s one cost that can easily get overlooked—and that’s HOA fees.

Not every home has them, but if you're considering a newer neighborhood or a home with shared amenities, there's a good chance an HOA is part of the package.

So what exactly is an HOA, and what should you know before moving into one?

What Is an HOA and What Does It Do?

A homeowners association (HOA) is an organization that manages and maintains a residential community. That includes setting and enforcing rules, handling shared spaces, and sometimes even covering maintenance or repairs. While some buyers appreciate the structure and benefits, others see the fees as an added cost.

Here’s a breakdown of what you might be paying for:

The Perks of Living in an HOA Community

1. Neighborhood Maintenance: Many HOAs cover things like landscaping, snow removal, and the upkeep of shared areas. That adds up to better curb appeal and a consistently clean, polished look.

2. Amenities: Some HOAs provide access to extras like pools, fitness centers, clubhouses, and private security. That can save you money elsewhere—like on gym or pool memberships.

3. Property Value Protection: HOAs enforce rules that help maintain the overall appearance of the neighborhood. That means you won’t have to worry about a neighbor’s rundown property dragging down your home’s value.

4. Less Personal Upkeep: In some communities, the HOA handles exterior maintenance, roofing, and more. That’s less work—and less expense—for you.

How Common Are HOA Fees?

HOAs are especially common in newer neighborhoods. According to the Wall Street Journal, over 80% of new single-family homes are part of an HOA. But even older homes can be located in HOA communities. Axios reports that about 4 in 10 homes in the U.S. had an HOA in 2024.

What Do HOA Fees Cost?

HOA dues vary. Some are monthly, some quarterly. Some include all kinds of extras; others just cover the basics. The median HOA fee in the U.S. rose to $125 per month last year, according to Realtor.com—but here on the Central Coast, that number can swing quite a bit depending on the neighborhood and amenities.

As Realtor.com’s Chief Economist, Danielle Hale, says:

“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

HOAs can offer real value, but they’re not for everyone. Before buying in an HOA neighborhood, make sure you understand the rules, the fees, and what you’re getting for your money.

Would you prefer added perks with an HOA, or more freedom without one? Let’s talk through what fits your lifestyle and budget best. And don’t forget to check out buywithamber.pillarrealestate.com for more buyer tips and resources to guide you home.