When buying a home, most people immediately think about mortgage rates, home prices, down payments, and closing costs. These are the financial pillars of the purchase process and dominate much of the discussion. But there’s another potential cost that can sneak into the equation—one that many first-time buyers overlook until they’re deep in the house-hunting journey: homeowners association (HOA) fees.

Depending on the location and type of home you’re considering, an HOA fee may be part of your monthly housing expenses. And while some buyers see HOA fees as just another cost, others view them as a worthwhile investment in convenience, aesthetics, and even property value protection. Understanding how they work and what they offer is essential to making an informed decision.

Let’s take a deeper look at what HOA fees really are, what they cover, and how they should factor into your home search.

A homeowners association is typically established in residential communities, particularly in developments with shared spaces or amenities. These associations are responsible for managing those common areas, enforcing community rules, and maintaining an overall standard of appearance and order within the neighborhood.

Think of an HOA as the organizational backbone of a community. Its goal is to preserve the value of the homes and provide residents with services or features that contribute to a high quality of life. In exchange, homeowners pay regular fees—monthly, quarterly, or annually—based on the services the HOA provides.

While HOAs can sometimes have a reputation for being strict, they also bring a long list of benefits that many homeowners appreciate.

One of the most visible advantages of an HOA is the consistent upkeep of a neighborhood. If you’ve ever driven through a community and admired the pristine landscaping, the well-maintained sidewalks, or the lack of cluttered yards, there’s a good chance an HOA is behind that curb appeal. These organizations often handle lawn care for shared spaces, snow removal, seasonal plantings, and general maintenance of entrances or community signage. The result is a neighborhood that looks polished and welcoming year-round.

In many communities, HOA fees also go toward funding amenities that would otherwise be expensive or logistically difficult for individual homeowners to maintain. Pools, fitness centers, walking trails, tennis courts, dog parks, and clubhouses are just a few of the perks that might come with HOA membership. For families or individuals who enjoy these types of features, the HOA fee can often replace the need for separate gym or recreational memberships.

Another key benefit is the protection of property values. HOAs enforce certain rules—like restrictions on house paint colors, lawn care standards, or limitations on vehicle parking—to ensure homes maintain a cohesive appearance. While this may feel limiting to some, it can also provide peace of mind. You don’t have to worry about a neighbor letting their property fall into disrepair or turning their front yard into a parking lot. Those kinds of unsightly changes could hurt your property value, but an HOA’s standards help prevent that.

In some townhouse or condo communities, HOA fees go even further. They might include roof replacement, siding maintenance, or exterior painting. In these cases, homeowners aren’t just paying for aesthetics—they’re also buying into a maintenance system that removes some personal responsibility and ensures major work gets done on time and up to code.

Still, it’s important to understand that not all homes have HOA fees. While they are particularly common in newer developments and planned communities, there are many single-family homes—especially in older neighborhoods—that operate without them.

That said, the number of HOA-governed homes is on the rise. According to The Wall Street Journal, over 80% of newly constructed single-family homes in the U.S. are now part of an HOA. That means if you’re shopping in a newer subdivision or a recently built community, there’s a high chance an HOA will be involved.

But HOA fees aren’t exclusive to new builds. Many resale homes—particularly those in suburban developments or condo complexes—also carry them. Data from Axios shows that in 2024, roughly four out of every ten homes across the U.S. were in HOA-governed communities. That makes understanding these fees not just relevant, but essential for today’s buyers.

As you browse homes and narrow your search, it’s crucial to ask your real estate agent whether a home has an HOA and, if so, what the fees are. HOA costs can vary dramatically. Some are as low as $25 per month, while others—especially those tied to luxury communities with high-end amenities—can exceed several hundred dollars monthly.

According to a recent report from Realtor.com, the national median HOA fee rose to $125 per month last year. While that’s a helpful benchmark, what you pay will depend entirely on the services provided and the region you’re buying in.

But don’t make the mistake of evaluating HOA fees as just another cost line. It’s better to think of them in terms of value. What does the fee actually cover? Is it saving you money elsewhere—such as on gym memberships, pool maintenance, landscaping, or security? And more importantly, does the lifestyle it supports align with your personal preferences and priorities?

Danielle Hale, Chief Economist at Realtor.com, puts it clearly:
“When considering a home with an HOA, buyers should work to understand what benefits it provides like maintenance, security, or communal amenities, and how the HOA fees factor into their overall budget.”

If you’re someone who enjoys a polished, organized neighborhood with plenty of shared features and services, an HOA might be a great fit. On the other hand, if you prefer having full control over your home’s exterior or don’t plan on using the amenities, you may find the fees to be more of a burden than a benefit.

The decision to buy into an HOA community is ultimately a personal one. Some homeowners thrive in HOA environments where everything is structured, maintained, and regulated. Others prefer the freedom to make their own choices about their property, even if that means taking on more personal responsibility for maintenance or aesthetics.

Before committing to a home, make sure to review the HOA’s governing documents. These outline the rules, restrictions, and fee schedules you’ll be expected to follow. Some HOAs restrict things like short-term rentals, parking commercial vehicles, or even installing solar panels. You’ll want to know exactly what you’re agreeing to before closing the deal.

Bottom Line

Buying a home is more than just a financial transaction—it’s a lifestyle decision. HOA fees are one part of that bigger picture, and they can have a significant impact on both your monthly expenses and your overall living experience.

If you’re exploring homes that include HOA fees, make sure to ask the right questions, weigh the benefits, and determine whether the community’s values match your own. Whether you choose a neighborhood with or without an HOA, understanding this aspect of homeownership will help you make the most informed—and confident—decision possible.

And if you’re unsure where to start, talk to a trusted local real estate agent. They can walk you through the pros and cons of specific communities and help you find the right fit for your lifestyle and budget.