November 25, 2025 | Mark Luis Foster
If you’re an HOA leader or HOA resident, you likely made a decision to move into your HOA with the intent of streamlining your life so that capable people other than you take care of yards, snow clearing, maintenance, etc. You may have also made that decision knowing that HOAs offer some cost benefits from that standpoint, with bulk billing of services creating savings on what I call a “per driveway” expense.
But no matter where or in what type of community you live, the cost of homeownership in general has increased dramatically. The newest quoted average number for annual homeownership is (ready?) $16K.
From FOX Business:
A new analysis from real estate marketplace Zillow and Thumbtack, an online marketplace for local services, found that insurance, maintenance and property tax can cost the average homeowner $15,979 per year. Maintenance costs account for $10,946 of that, while about $2,003 goes toward homeowners insurance and $3,030 toward property taxes, according to the November analysis.
Collectively, housing costs jumped 4.7% in the past year, which has outpaced household incomes that rose only 3.8% during the same period, according to the report.
Predictably, coastal markets in the USA have the highest expense load. Homeowner costs in New York City, for example, hit an expense level exceeding $24,000. In San Francisco, arguably California’s most expensive market, costs hit $22,781. In Boston, MA, $21,320.
All of these increases are caused by a soup of complexity, with insurance the leading culprit. According to the report:
Insurance premiums have risen 48% nationwide since February 2020, topping $2,000 annually on the typical home. However, Florida, in particular, is getting hammered by insurance premiums due to the state’s high hurricane and flood risks, rising rebuilding costs and expensive reinsurance for insurers. On top of that, fraud and lawsuits have driven up legal costs and many insurers have left the state, which is reducing competition and driving up prices.
There is a government effort to try and mitigate homeowner affordability.
… the White House is exploring how to monetize Fannie Mae and Freddie Mac, which could involve selling all or part of the government’s stake in the enterprises. Fannie Mae and Freddie Mac play a critical role in the home financing industry and have been under federal conservatorship since the 2008 financial crisis. Bessent said the administration is looking at how to get the best value for taxpayers when it comes to Fannie Mae and Freddie Mac, and how to keep mortgage rates from rising – or lower them – in order to fix the persisting affordability crisis.
Ah, the joys of homeownership.
Read the story HERE.
