Average HOA Fees: How Much Are They?

Are you considering moving to a neighborhood with an HOA and want to learn more about how much it will cost? Here is what you need to know about average HOA fees.

A homeowner's association (HOA) is an organization that creates and enforces rules and regulations in a neighborhood, community, subdivision, or residential building. Homeowners pay the HOA each month or year for maintenance and upkeep in the neighborhood.

The fees paid to an HOA will vary greatly depending on the neighborhood, type of HOA, location, and many more factors. While you search for your next home, it is vital to research the HOA fees in your desired neighborhood or condo complex. You don't want to buy a home and run into hidden fees without being prepared. 

If you can't find the HOA fees online, your real estate agent should be able to find your total fees. 

According to the HOA-USA, over 370K homeowner associations are in the United States. This is about 53% of all owner-occupied homes in the country. Over the course of the home-buying process, you will most likely run into at least one community with HOA fees.

It is vital to understand the average HOA fee in your area to ensure you aren't paying too much in fees. Many homeowners decide to join their HOA to ensure more control over the rules and regulations set in the community. Make sure to keep reading to learn about the average HOA fees in the US. 

Keep reading to learn all about average HOA fees and how much it will cost you.

1. What Is An HOA?

An HOA is a community association that collects monthly or yearly fees from its residents to help maintain the community. This includes lobbies, elevators, swimming pools, landscaping, tennis courts, basketball courts, garbage disposal, and any other amenities. 

The HOA has pros and cons and sets specific rules and regulations that all of the community members must follow. The rules are referred to as Covenants, Conditions, and Restrictions (CC&Rs). Some HOAs will set more fees if members don't properly follow the rules and regulations of the community. 

The rules can include anything from the number of pets you can have to the number of cars you can park in front of your home. How much power an HOA has will depend on the association it is under. Some HOAs are only responsible for community grounds or buildings, and others have more say over your home. 

The HOA will have the freedom to change rules if they see fit, but all are meant to maintain and increase the value of homes in the neighborhood. The HOA will have to set rules that comply with state and federal laws. 

Not only will the HOA be responsible for enforcing rules, but their main job is to maintain the community. This is a big reason why homeowners live in HOAs: the HOA is in charge of neighborhood upkeep, which is extremely important to many homeowners.

2. How Many People Live In An HOA?

Since the mid-1800s, HOAs have grown tremendously, and a large number of homes are part of an HOA. 

According to HOA-USA, over 40 million households live in HOAs. Collectively, this represents over 370,000 homeowner associations in the United States. HOAs mean multi-family homes, condos, townhomes, and co-opts.

An HOA is a nonprofit, although the community pays monthly or yearly dues to pay for expenses. According to the Foundation for Community Association Research, about 2.72 million people live in HOAs, which is about 25.9%. 

California, Florida, and Colorado have the highest number of HOAs in the country. On the other hand, Arkansas, Oklahoma, and Mississippi have the lowest number of HOAs in the country. These three states consist of only 5% of homes that are part of HOAs. 

3. How Much Are The Average HOA Fees In NC?

With approximately 14,300 HOAs in North Carolina, each resident pays between $100 and $1,000. The average is typically between $200 and $300 per month. This will depend on the type of community, the amenities, and the services provided. 

In 2023, North Carolina ranked 9th in the country for the highest percentage of homes in HOAs. The average monthly HOA fee in the country is $390, which translates to about $4,700 per year.

In NC, the average HOA fee is $385, $5 less than the national average. This means you will save more money living in an HOA in NC compared to one in other states.

If you live in a neighborhood with an HOA, you will be required to pay the HOA fees. However, some HOAs don't require members to pay for everything. For example, if your neighborhood has a pool or golf course, you can opt out of paying for those. This will mean you cannot use them unless a paying member accompanies you. 

If you are considering living in one of the best places in North Carolina, be prepared to pay higher HOA fees. However, each of these cities and towns has amazing neighborhoods requiring much upkeep. 

Some surrounding states have the lowest fees in the country. Here is a look at the average HOA fees for states around NC:

State	Average HOA Fees
Virginia	$600 - $1,500 per year
Tennessee	$150 per month
South Carolina	$200 - $300 per month
Georgia	$290 per month

4. What Are You Paying For?

The dues you pay to an HOA will vary, and so will the services provided by the HOA. Typically, all the services fall under neighborhood upkeep and maintenance. This will include home improvement, maintenance and repairs, association insurance, municipal services, amenities, and reserve funds.

Upon signing for homeownership rights, you are agreeing to abide by the HOA rules. These rules will apply to all community members, no matter if they rent or own. The majority of rules will be in place to keep your community safe and clean, but several may include restrictions on your landscape choices. This may include fencing types and height limits, outdoor structures, decks, pools, maintenance standards, and more. 

Maintenance and repairs usually only apply to common spaces such as the sidewalks, parks, pools, and signs. If you live in a condo or apartment, this includes the interior and exterior of the building. 

Many HOAs require members to pay dues to access certain amenities like the pool, clubhouses, fitness centers, and sports courts/ courses. Many even have restaurants that require members to spend a specific amount of money each month to stay a member. 

Similar to any business, an HOA will set aside money from dues to a reserve fund. This fund is used in emergency situations or non-recurring repairs.  

An HOA can increase property values with well-maintained parks, roads, and sidewalks. Homes in HOAs are actually valued at least 4 percent higher than homes that are not in one. This can make selling your home much easier, as it is seen as more valuable than others. This can increase your quality of life, and you won't have to worry about garbage removal, lawn care, and security. 

5. How Are HOA Fees Determined?

A voting board of the HOA usually determines the dues. This committee votes on where the money should go, how much fees should be, and when fees are due.

Typically, to join an HOA, you will have to be voted on by your community members. Depending on your state's laws, the current HOA board may have to inform community members within a few days before the annual meeting to vote on who may join. 

If you are renting a property, check with your HOA because some allow non-owners to join. This could be a great way to learn more about the community and possibly set you up to buy your own home. 

While about 35% of HOAs are operated by volunteers, there has been growth in the market for professional community managers. About 8,500 community association management companies nationwide, which collectively employ about 102,500 employees. 

Most HOAs are managed by the Community Association Management in North and South Carolina. They ensure HOAs comply with state and federal laws while staying financially stable. 

If you do not comply with the rules and restrictions placed by your HOA, they are allowed to levy a fine against you as a resident. If you cannot or refuse to pay a fine, some HOAs may suspend your privileges to specific amenities until the fine is paid.

If a community member racks up unpaid fees, the HOA can put a lien on the house. This means if it is sold, the lien has to be paid before the buyer can pay the owner. In extreme cases, an HOA has the right to file a lawsuit or even foreclosure in which the HOA is forced to sell a home to make up for the unpaid dues. 

Methodology

We used data from many different sources to help determine how much homeowners spend on HOA fees. Most of the data was sourced from the following sources:

• Homeowner's Association - USA
• North Carolina Community Association Management
• Community Association Management
• Foundation for Community Association Research
• Queen City News

FAQ: Average HOA Fees

Here are some commonly asked questions about the average HOA fees and how much they cost.

Where are the highest HOA fees?

The highest HOA fees in the United States are in Honolulu, Hawaii. The average HOA fees in Honolulu are about $730.

What is the average HOA in North Carolina?

HOA fees vary drastically from neighborhood to neighborhood; the average North Carolina resident pays between $100 and $1,000 monthly. Most residents pay about $250 in HOA fees. 

What percentage of Americans line in an HOA?

Surprisingly, only about 35.6% of Americans live in an HOA. 

Why do people join HOAs?

Many residents decide to join their HOA to have more control and say over community rules and maintenance. The HOA will directly impact you as a homeowner, and it is important to many homeowners to have a say in what goes on in your community. 

Why do HOAs have so much power?

Typically, HOAs are given power when the association grants them rights and privileges. The association will allow the HOA to set its own rules and regulations for the community. The HOA will also have the resources to enforce its rules. 

Average HOA Fees - The Bottom Line

There are many pros and cons to consider before buying a home in a neighborhood with an HOA. Being a part of an HOA neighborhood can give you a sense of community, which is extremely important if you are new to the area.

Many HOAs host events where you can meet your neighbors and learn more about your new home. If you are a first-time homeowner, this is a great way to learn the most important things about owning a home. 

Before putting down any down payments, check the neighborhood's HOA and figure out as much as you can. From the price of fees to community amenities, you should know what you are getting yourself into. 

Once you have decided if you want to live in an HOA, you are all set to find the best home in the best location. Raleigh, NC, is one of the fastest-growing areas in the country and has many beautiful homes for sale; you'll have to act fast if you want to buy your dream home in one of Raleigh's best neighborhoods. 

Before you buy your next home in the Triangle, feel free to contact one of our helpful real estate specialists, as they are eager to help you find the perfect home. We know that buying a home can be overwhelming, so make sure you are prepared beforehand.