Growth Of HOAs In 2022 And What Does This Mean For Communities?

admin | April 27, 2022

There are thousands of homeowners associations in the United States alone. These HOAs in 2022 are poised to increase in number, as a handful of factors influence their growth.

Browse By Category


Sign up for Our Newsletter

Are you a HOA Member?(Required)

There are thousands of homeowners associations in the United States alone. These HOAs in 2022 are poised to increase in number, as a handful of factors influence their growth.

 

HOAs in 2022: A Look-Back

Community associations come in several forms, including homeowners associations, condominiums, and housing cooperatives. These associations have been growing in popularity since the 1970s. In fact, in the years between the 1970s and the 2000s, community associations went from a meager 10,000 to 222,500 strong.

Condominiums, in particular, have remained a top choice among house seekers because they provide easy access to public transportation, amenities, and city centers.

In the year 2020 alone, 65% of new single-family homes were constructed within homeowners associations. Today, these associations house 74.1 million Americans, which equates to about 25% to 27% of the U.S. housing stock.

The number of homeowners associations as well as the residents who live in these communities has clearly been trending upwards year after year. But, will this trend maintain its momentum? Are homeowners associations expected to continue growing this year?

 

Will There Be a Growth in Homeowners Association in 2022?

Residents of homeowners associations already know what makes these communities so attractive. But, those who have never experienced association living or are currently hunting for houses may not be aware of the statistics surrounding HOAs in 2022.

The Foundation for Community Association Research recently published its projections for community associations for this year. This includes homeowners associations, condominiums, and housing cooperatives. According to the research, the prediction for HOA growth in 2022 is quite modest, with the number poised to increase by 5,000.

The increase is considered modest, though it does not go against the growth in previous years In fact, in 2019, about 4,000 new community associations popped up. The year prior, there were only 2,500 new community associations.

 

Factors Affecting the Growth of HOAs in 2022

Those unfamiliar with how homeowners associations work may question the projected increase. What exactly are the elements that impact homeowner associations growth in 2022?

 

High Demand for Homes

hoa growth in 2022For a while, it looked as if the demand for housing was waning. But, ever since the COVID-19 pandemic, the U.S. housing market has been flourishing. The pandemic brought on historically low mortgage rates, and homebuyers have seized the opportunity to take advantage of them. This trend has continued on since the second half of 2020.

The demand for housing, though, is already so high that sellers are having trouble keeping up. There are new home constructions underway, but the consistent shortages in the supply chain and labor may make it difficult to produce enough housing to meet the demand.

 

Benefits of HOA Living

One of the things that made HOAs popular in 2021 is the benefits of association living. Many homeowners associations, particularly condominiums, are located in prime areas. They are close to city centers, schools, restaurants, and public transportation.

In addition to their location, homeowners associations also provide a sense of stability. Thanks to the HOA reserves, common elements and areas are expected to last longer and at a better quality. Of course, some associations have had to learn the value of a well-maintained reserve fund the hard way.

Another benefit is that residents gain access to amenities and common areas such as clubhouses, pools, parks, walking trails, gyms, and tennis courts. More often than not, the use of these amenities and facilities is exclusive to members of the community only.

Homeowners associations also provide services such as trash collection, recycling, road maintenance, snow removal, and stormwater management. Instead of the local government handling these things, control is mostly transferred to the homeowners themselves.

Beyond that, homeowners associations offer a sense of community that does not come with standard homeownership. These associations also keep property values high through proper common area maintenance and the enforcement of rules.

 

Homeowner Satisfaction

It is also worth attributing the continued growth of HOAs to homeowner satisfaction. A lot of homeowners feel pleased with how their associations operate, inspiring many others to live in similar communities.

According to the 2020 Homeowner Satisfaction Survey, 89% of homeowners feel content with their experience in HOAs. The survey also showed that 89% of residents believe that their HOA board is doing well in serving the community’s best interests. Apart from that, a whopping 94% of surveyed homeowners say that their community’s rules have a positive or neutral effect on property values.

 

Strong Rental Market

homeowners association in 2022The number of new homeowners has definitely shot up since the pandemic. And while more and more people are taking another step toward the American dream, there is still a good chunk of the population that prefers to rent.

The rental market in the United States remains solid, as many younger Americans opt to rent than buy. Renting is a popular choice for those who aren’t seeking a huge housing commitment. It is also a good way to get a feel of a neighborhood or city before making a large investment in a home. Additionally, some people simply lack the means to take out a mortgage.

Because of the strong rental market, some developers feel more inclined to construct apartments instead of single-family homes or condominiums. This has a significant influence on the projected modest growth of HOAs in 2022.

 

The Right Management

Homeowners associations possess a lot of merits. But, these communities only manage to remain this way thanks to proper management. Some associations opt to take the self-management route, relying solely on the expertise of the HOA board.

Not all HOA boards, though, have the time or necessary experience for all aspects of community management. Such communities find that the best way to keep the association in good working order is to hire a professional management company. A management company can assume most of the board’s duties without taking over the decision-making part of its job. These companies also provide value through their network of connections and board education programs.

 

The Bottom Line

Clearly, there is no stopping the growth of HOAs in 2022. Though modest, this anticipated increase can be attributed to the many attractive qualities of community associations. When it comes down to it, HOAs provide a more secure form of homeownership, offer valuable amenities and services, protect property values, and instill a sense of community. As such, more potential buyers will look to these communities for a place to call home.

A homeowners association, though, is only as good as those who manage it. Find the best HOA management company today with the help of our online directory.

 

RELATED ARTICLES:


Sign up for Our Monthly Newsletter

Sign up below for monthly updates on all HOA Resource

Are you a HOA Member?(Required)
company logo
company logo
company logo
company logo
company logo
company logo
company logo
company logo