August 25, 2025 | Mark Luis Foster

The National Association of Realtors estimates that more than 75 million people live in an HOA in the USA, which accounts for approximately 30% of existing housing stock. The latest data indicates that more than 80% of new construction is now being built in an HOA.

A real estate online magazine called Mansion Global, which defines itself as being part of Barron’s Group, comprising publications like Barron’s magazine, MarketWatch and Financial News, has published a long article about HOAs and what some would call an emerging dilemma: Is it worth buying into an HOA?

Their article seems to blame boards for the collective deep breath that’s apparently happening in the high-end market.

The source of conflict often lies in the boards themselves. An HOA is a collection of neighbors who make up a panel of directors that can rule a neighborhood with benign let’s-have-nice-things authority or with an iron, fine-inducing fist.

This despite the fact that a recent survey (which we’ll cover soon in this blog) from Foundation for Community Association Research found that 82% of HOA residents are on friendly terms with their boards.  No telling what the remaining 18% might label themselves.

The article goes on to indicate that the upper end of the market looking at HOAs as a potential investment is asking “more serious questions” before signing on the bottom line.

Chad D. Cummings, a corporate and tax attorney operating throughout Texas and Florida at Cummings & Cummings Law, advises clients to “exercise extreme caution” before buying into a planned community.  “In my experience, the risks associated with such associations are significantly under-appreciated,” Cummings said. “Once a deed is signed, the buyer is contractually bound by a private regime that often operates with sweeping power and minimal accountability.”

They quote experts who suggest buyers go through substantial due diligence before making the decision.

To keep from being blindsided after moving into an HOA, luxury agents recommend treating HOA vetting like forensic accounting. Ask how much the community has raised dues in the last five years, and by what percentage. A steady climb of 3% to 5% may be manageable, but sudden double-digit jumps can spell trouble.

Read the whole article HERE.