2025 U.S. Real Estate Predictions and Homeowner Association Fees

Introduction to 2025 U.S. Real Estate Predictions

Zillow predicted a more active market with additional inventory for 2025, giving buyers more room to negotiate. However, homebuyers should expect some turbulence with fluctuating mortgage rates, even as more homes become available. Alana Mann, President of The Statesman Group of Companies, joined LiveNOW from FOX to discuss.

New Data on Homeowner Association Fees

New data is revealing how many households in the United States paid condo or homeowners association (HOA) fees in 2024, providing a more complete picture of the cost of homeownership. The findings, featuring one-year estimates, were published in the U.S. Census Bureau’s 2024 American Community Survey (ACS).

Nearly 1 in 4 Homeowners Paid HOA Fees in 2024

According to the data, around 21.6 million of the nation’s 86.6 million owned households in the United States paid either a condo or homeowners association (HOA) fee in 2024. About 5.6 million or 26% of homes paid less than $50 a month and about 3 million homes paid more than $500 a month. The national median monthly fee was $135. But a large share of homeowners in some states — most notably New York (64%) — reported paying more than $500. So did about half of homeowners in the District of Columbia and in Hawaii.

Distribution of HOA Fees Across the Country

The 21.6 million households that paid condo and HOA fees in 2024 were not evenly distributed across the country. Some states like Arizona, Florida, and Nevada, which typically attract a lot of retirees to planned communities, had higher proportions of homeowners who reported paying condo or HOA fees. Meanwhile, states with among the smallest shares included Maine, North Dakota, Rhode Island, South Dakota, and Wisconsin.

What are HOA Fees?

Homeowner associations are nonprofit organizations that manage housing, often in planned or gated communities. HOAs collect fees to manage common areas and amenities. Condo fees are similar but cover more shared services and structural features like roofs and hallways. HOAs are more prevalent than condos in the United States and their fees are typically lower.

Related: Cost of Homeownership

The cost of homeownership hit a new high in 2024, according to an annual report. This is partly due to the increasing HOA and condo fees that homeowners are required to pay. The report highlights the need for prospective homeowners to factor in these costs when considering purchasing a home.

Source of the Information

The information for this story was provided in the 2024 American Community Survey (ACS). HOA and condo fees homeowners pay are only one of the monthly housing costs captured in the ACS. The survey also provides data on insurance costs, property taxes, mortgage, and utilities expenses. This story was reported from Los Angeles.

Conclusion

In conclusion, the 2025 U.S. real estate market is expected to be more active, with more inventory available for buyers. However, homebuyers should be aware of the potential turbulence caused by fluctuating mortgage rates. Additionally, the cost of homeownership is increasing, partly due to rising HOA and condo fees. Prospective homeowners should carefully consider these costs when purchasing a home.

Frequently Asked Questions

Q: What is an HOA fee?

A: An HOA fee is a monthly fee paid by homeowners to cover the costs of managing common areas and amenities in planned or gated communities.

Q: How many households paid HOA fees in 2024?

A: According to the data, around 21.6 million households paid HOA fees in 2024.

Q: What is the national median monthly HOA fee?

A: The national median monthly HOA fee is $135.

Q: Which states have the highest proportions of homeowners paying HOA fees?

A: States like Arizona, Florida, and Nevada have higher proportions of homeowners paying HOA fees, due to the large number of planned communities in these states.

Q: What is the difference between HOA fees and condo fees?

A: HOA fees cover the costs of managing common areas and amenities, while condo fees cover more shared services and structural features like roofs and hallways.

Q: Are HOA fees negotiable?

A: HOA fees are typically non-negotiable, as they are set by the homeowner association to cover the costs of managing the community. However, homeowners can try to negotiate with the HOA board to reduce fees or request exceptions in certain circumstances.