Does an HOA Really Raise Home Value?

Does an HOA Really Raise Home Value?

More than half of owner-occupied households are located within the jurisdiction of a homeowners association (HOA) — that’s 40 million households. In exchange for a monthly fee, homeowners enjoy a regulated standard of living as well as access to common amenities, such as enhanced street lighting, cleared walkways, community pools and clubhouses. While there’s no doubt HOAs can make life more comfortable, there’s some debate as to whether HOAs raise home values.

The Argument Against HOAs

HOAs have many restrictions that may impact what you can do with your property. For example, some HOAs will not allow you to rent out a room or park a commercial or work vehicle in your driveway. Personal expression is also limited as all improvements and changes, such as a new paint color, must be approved by the HOA board. Then, there is the additional cost to factor in.

Opponents to HOAs argue that lack of freedom and the higher cost make HOA neighborhoods undesirable for home buyers, which may drive down home prices and make it more difficult to sell your home.

The Argument for HOAs

Statistics don’t back up the opponents’ claims, however. According to a Regulation article, homes located within an HOA sell for 5% to 6% higher than equivalent homes in similar neighborhoods without an HOA. Homes located within HOA communities also maintain value and are often insulated from the volatility of the market.

How HOAs Protect Property Values

HOAs protect property values in multiple ways. Not only do they ensure that renters will not move into the area, they prevent the neighborhood from falling into disrepair by enforcing maintenance and cleanliness rules. HOAs keep communities safe, stabilize property values and protect the community from domino foreclosures. All in all, an HOA will protect the investment you made into your home.

Living in a community managed by an HOA has its perks, but it will cost you. On average, you can expect to spend $200 to $300 per month on HOA fees, according to In exchange, you’ll have access to certain amenities as well as the peace of mind that comes with knowing your property values are protected.

~Here’s to Your Success!