The Pros and Cons of an HOA

If you are currently house-hunting, chances are you have run into a few HOAs. While every HOA , or Homeowners Associations are different, they have a lot in common. HomeLight recently highlighted a study published in the Journal of Urban Economics, where it was determined that HOA’s occupy nearly 60% of recently built single-family homes. The study revealed that they also govern 80% of houses that have been built in new subdivisions. But what are the benefits of an HOA? Are there any drawbacks?

Let’s take a look at the pros and cons of an HOA in your neighborhood:


  • Outdoor Chores are Handled: While not every part of your home’s outdoor upkeep is taken care of, there is a lot that an HOA can handle. Many HOA’s will handle the exterior upkeep of your home. This could include lawn care, snow removal, trash pickup, maintaining the building exterior, and even landscaping.
  • Increase the Value of Your Home: According to that same study performed by Wyatt Clarke and Matthew Freedman, single family homes with an HOA can sell for up to 4% more than their counterparts without one. 
  • Maintain the Community Atmosphere: An HOA can also create a sense of community. There is a built-in plan for conflict resolution in most HOA policies, which can be used to help settle disputes with your neighbors. 


  • Fees: While there are many benefits to an HOA, there are some drawbacks. An HOA will require a fee from you every month to maintain the services that they provide. Some fees are as big as $500 a month, while some are only $50-100. This fee depends on the neighborhood and the services that are offered. 
  • Strict Guidelines: When your home is in an HOA, there are often strict rules about the exterior of your home. There are even rules about the type of dog you can own and the fence you can put up! The HOA can fine you for things like a jungle gym or even the color of your door. 

When considering the pros and cons of an HOA, it is ultimately up to you and your lifestyle. If you can handle the rules and the fees, then an HOA may suite your needs. 
To top ⬆