Homebuilders Boost HOA Communities as Amenities Become Key Selling Point

A growing trend for newly constructed homes reveals more single-family homes are being built within community or homeowners associations, according to recent findings.

Among new single-family homes started in 2024, 65.7% were built within a community or HOA, according to National Association of Home Builders tabulations of data from the Census Bureau’s Survey of Construction. That represents 651,873 homes.

Fifteen years ago, just 47.6% of new single-family homes were constructed within a community or homeowners association, marking an 18.1% jump since then.

"HOAs have become a trend among new homes as builders want to offer communal amenities like pools, security services, and common spaces that make their homes more desirable," says Joel Berner, senior economist at Realtor.com®. "They are a cost-effective way to offer these amenities in bulk to the community as a whole."

As more builders offer these HOA services, Berner says others have started to do the same to compete, and the prevalence of HOAs has really taken off among new construction.

The cost of HOAs

With an HOA comes the inevitable, and often dreaded, association dues.

Roughly 21.6 million of the 86.6 million U.S. homeowners, or 1 in 4, paid either a condominium or a homeowners association fee in 2024, with 3 million facing hefty monthly charges of more than $500, according to a recent U.S. Census Bureau survey.

According to a report released by Realtor.com in January 2025, more than 40% of all for-sale homes in 2024 came with HOA fees, up from 39.2% the year before. 

"HOA dues absolutely are an added expense and a barrier to homeownership," says Berner. "It's important for prospective buyers to factor in all the costs of homeownership when making a monthly budget and determining how much home they can afford. Not only are there the principal and interest on the loan, but HOA fees, property taxes, homeowner's insurance, maintenance costs, and more.

New York had the highest median monthly HOA/condo fee last year, at $739—more than five times the national median of $135.

"HOA fees are a genuine concern, and one I hear often," says Brett Johnson, owner and real estate agent at New Era Home Buyers in Englewood, CO. "Anytime someone calls me to sell fast, the increasing dues or unexpected special assessments usually sit somewhere in the backstory."

Homeowners have varying opinions on HOA fees, and whether they are worth it or not.

"Younger buyers, especially first-timers and investors, seem more cautious about HOA fees," says Florida real estate agent Ron Myers of Ron Buys Florida Homes. "They don’t want surprise costs, and they’re comparing HOA fees to what they’d be paying toward the mortgage. I’ve also had older sellers in 55+ communities who are looking to cash out before the next HOA hike hits."

Many people are also worried about the unpredictability of HOA fees and how much they might rise in the future.

"Clients are concerned about the fact that HOA fees can increase over time, especially after hearing stories about large special assessments for roofs or concrete restoration in certain communities," says Jeff House, the strategic real estate adviser at Real Estate Bees in Dayton, OH.

Others view HOA fees as money well spent.

"A lot of my clients will compare the value for what they get with their HOA dues and realize that it's a nominal fee for what's covered, like landscape, pool, and pest control," says Stacy Miller of Re/Max Fine Properties in Arizona. "Some HOAs even pay for water, sewer, and trash, along with internet."

Some wary of HOA rules

Many homeowners feel apprehensive about HOA guidelines and the risk of overstepping.

"People don’t want the HOA in their business too much, and they know going in that the HOA can be your best friend or your worst enemy," Cara Ameer, a real estate agent with Coldwell Banker who is licensed in Florida and California, tells Realtor.com.

"They can dictate what colors are acceptable to paint your home, the kind of fencing you have to have, and how often you have to mow your lawn," she says, "and you'll get called out or fined if you don't comply."

Miller says her clients tend to be more concerned with HOA restrictions than the dues increasing.

Myers agrees, noting, "Buyers have strong opinions about HOAs, and some just feel like the rules are simply too strict."

Johnson says his clients tend to have mixed feelings about HOAs, and the split usually comes down to control. "Some love the clean look of the neighborhood and the predictable upkeep, but a lot of folks feel boxed in by the rules and don't love being told what color their front door can be," he says.

House says, "Some of my clients say, right away, 'I don’t want anyone telling me what I can or can’t do with my property,' and that’s the end of the HOA conversation for them."

Pros and cons of HOAs

Despite the concerns about rules and fees, many homeowners feel the pros of buying a home within a community or homeowners’ association outweigh the cons.

"Most homeowners like HOAs that can help protect property values, keep the neighborhood looking like new, and provide the amenities they themselves couldn’t afford and/or don’t want to maintain on their own, such as gyms, clubhouses, dog parks, play areas, and gated entries," says House.

These communities are where a lot of younger couples, singles, and families want to be, according to Miller.

"Here in Phoenix, most new-construction homes in the more desired areas are in an HOA," she says. "Most have reasonable HOA dues, but they also include a ton of amenities like community pools and outdoor spaces for get-togethers with neighbors." 

According to Palm Beach real estate broker Jeff Lichtenstein, CEO of Echo Fine Properties, people need HOAs the same way they need government.

"From prettying up the neighborhood with holiday lights or landscaping to enforcing that a subdivision looks clean and tidy, it’s a must," he says. "Without HOAs, you’d have anarchy."

Those resistant to HOA rules and fees would likely beg to differ—and may prioritize finding a home that is not subject to an HOA, according to Berner.

"They may find that the services provided aren't worth the cost and would prefer to build their own pool, for example," he says. "It's important to take note of what the HOA actually provides and determine whether that is worth the monthly cost."