July 21, 2026 | Mark Luis Foster
In the Not So Great news department comes this gem from the Minneapolis Business Journal, which quotes a study from the data firm TrueHOA:
According to the analysis, only 23.4% of Twin Cities homeowners pay HOA or condo fees, which ranks 29th among the 45 markets studied. But they pay a monthly median of $276 in such fees, the 10th-highest in the nationwide analysis. Metro-level HOA and condo median fees are based on the U.S. Census Bureau’s most recent American Community Survey and integrated with current LendingTree data.
TrueHOA, which is described as a “block chain tech company for boards and members,” analyzed data to determine how HOA fees can add up when capitalized over the long term, finding that every $100 per month in HOA fees translates to approximately $20,000 in long-term costs.
The kicker:
Based on TrueHOA’s calculations, that Twin Cities monthly median fee could add up to $55.200 in long-range equity losses.
What I don’t see in the analysis is what I would call “offsetting costs.” For example, your per driveway cost of lawn care, snow removal, garbage removal, and even master insurance in an HOA is still cheaper than living across the street in a non-HOA due to bulk billing. As a non-HOA homeowner, you’re paying out of pocket for those services if that’s what you seek. Data like this tends to ignore that issue, and that makes long-range equity losses all the worse (or better, if you’re an HOA hating media outlet).
We were not asked to opine on this story, but thankfully CAI was called.
Dawn Bauman, CEO of Community Associations Institute, a Falls Church, Virginia-based HOA advocacy group with 60 chapters across the world, said 86% of residents involved in a community association rate their experience as positive or neutral. That’s a reflection of the value homeowners place on services, amenities, community connections and overall living experiences, she said.
What about the critics of HOAs? What say them?
“Governing documents of the HOA specify what discretion the board and its management have to impose late fees or interest on unpaid assessments. Some HOAs interpret that very broadly, charging interest upon compounding interest that in some cases wouldn’t be allowed in the foreclosure mortgage context,” explained Thomas Tillona, senior staff attorney at Staten Island Legal Services. “I think it may still come as a surprise to people that you can lose your home over these fees but there’s also a greater awareness of the challenges HOAs are posing.”
It’d be great if buyers read the rules when they buy into an HOA. That may mitigate the issue described above.
This story is available at the Business Journal in its latest edition; however, it’s behind a paywall. HERE.
