Home sales continue to be strong in the wake of the COVID-19 pandemic with roughly 27% of Americans now living in a community with a homeowners association (HOA) or planned community. According to the Foundation for Community Association Research, the overwhelming majority (89%) of homeowner and condominium association residents rate their overall experience living in a community association as very good (40%), good (30%), or neutral (19%).
“Both homeowners and home buyers appreciate the stability that HOAs provide to their neighborhood of choice,” Steve Weibel, CEO of Beacon Management Services, said. “These consumers know that there are reserve funds available for the repair, replacement and enhancement of common property whether that is a swimming pool, elevator, clubhouse or community road or parking lot.”
The 2020 Homeowner Satisfaction Survey details the top reasons that community associations continue to grow:
- The value of collective management. HOA boards are comprised of democratically elected homeowners who voluntarily serve their communities. Research shows there are 2.4 million community association board and committee members in the U.S. performing 97.6 million hours of volunteer service annually.
- Privatizing public functions. Local governments often stipulate that the developer or home builder create an association to assume responsibilities that previously belonged to local and state governments. This might include road maintenance, trash removal and stormwater management, just to name a few. According to the report, 75% of new housing for sale is in a community with a homeowners association.
- Expanding affordable housing. There is a consistent effort to increase the percentage of homeowners in the U.S., and since the 1960s, condominiums and townhomes have provided a lower-cost entry to housing. These homes are attractive to first-time homebuyers due to their affordability and the fact they are often located in areas where single-family homes are much more expensive. Condominium communities account for 35–40% of the reported total of community associations.
Beacon Management Services continues to experience the growth of HOAs first hand. To learn more about our available services, visit www.beaconmanagementservices.com/client-services.