Community Associations Real Estate Statistics

Community associations have become a defining feature of the U.S. housing market, particularly in suburban and high-density urban areas.

Whether it's a homeowners association (HOA), a condominium board, or a co-op, these organizations manage everything from shared amenities to long-term maintenance budgets.

But beyond the swimming pools and landscaping rules lies a detailed financial and demographic story.

This blog breaks down the data behind how community associations are growing, who lives in them, what they cost, and how they affect homeownership. If you're involved in property management or considering buying in an HOA community, the numbers here will help you understand where the market stands, and where it’s headed.

Growth Trends in Community Associations

Community associations, including homeowners associations (HOAs), condominium communities, and cooperatives, have grown significantly in the United States over recent decades.

This expansion reflects changing housing preferences and development patterns.

In 1970, there were approximately 10,000 community associations in the U.S.
By 2023, this number had risen to an estimated 365,000, indicating a substantial increase over the past five decades.
Projections for 2025 suggest the number of community associations will reach between 369,000 and 373,000.
As of 2023, approximately 77 million Americans resided in community associations, accounting for about 33% of the U.S. housing stock.
This represents a significant increase from 2.1 million residents in 1970.
In 2023, 64.8% of all new single-family homes started were built within a community or homeowner’s association, up from 62.6% in 2022.
This trend is particularly pronounced in the Mountain division, where 81.9% of new homes were part of such communities in 2023.
California leads with approximately 14 million residents living in community associations as of 2023.
Florida and Texas also have significant community association residents, reflecting regional preferences for such living arrangements.

The consistent growth of community associations underscores their integral role in the U.S. housing market, offering residents shared amenities, maintenance services, and a structured community.

Historical Overview: Growth from 1970 to Present

The growth of community associations in the United States mirrors the shift toward planned developments and shared responsibility housing.

Since the early 1970s, these associations have grown in number and influence, ranging from homeowners associations (HOAs) to condominium communities and cooperatives.

In 1970, there were only about 10,000 community associations nationwide.
By 1980, the number jumped to approximately 36,000, driven by suburban expansion.
1990 saw around 130,000 associations, supporting growing demand for shared amenities and managed communities.
As of 2023, there are approximately 365,000 community associations in the U.S.
According to the Community Associations Institute, that’s over a 3,500% increase since 1970.
These associations now represent about 33% of U.S. housing units, housing 77 million residents.
In contrast, only 2.1 million Americans lived in such communities back in 1970.

The dramatic rise reflects changes in housing development, municipal cost-sharing strategies, and homeowner demand for shared services and amenities.

Annual Formation Rates & Projections

The consistent formation of new associations points to their sustained role in future housing development. Single-family homes and condominium communities account for the majority of these new builds, particularly in states with high population growth.

In 2023, 64.8% of all new single-family homes started were in community associations.
That’s up from 62.6% in 2022, according to the National Association of Home Builders.
In the Mountain region, the percentage was even higher, 81.9% of new homes started in 2023 were part of an HOA community.
The U.S. is expected to have between 369,000 and 373,000 associations by 2025.
About 5,000 to 7,000 new associations form annually, based on recent averages.
This constant growth aligns with local governments' increasing reliance on associations to maintain roads, landscaping, and shared amenities like pools or walking trails.

These trends highlight a shift toward privately managed communities as a growing standard in the American housing market, particularly where municipal resources are stretched or new developments require self-managed services.

Demographic Insights

Percentage of U.S. Population Residing in Community Associations

The proportion of Americans living in community associations has seen a notable increase over the past few decades:

1970: Approximately 2.1 million residents lived in community associations.
2023: This number has risen to approximately 75.5 million residents, accounting for about 30% of the U.S. population.

This growth reflects a change towards shared-responsibility housing and the appeal of managed communities offering various amenities.

Regional Distribution of Community Associations

The prevalence of community associations varies significantly across different states:

California: Leads with approximately 50,700 community associations, housing around 14.4 million residents.
Florida: Follows with about 49,800 associations, accommodating approximately 9.5 million residents.
Texas: Hosts around 22,300 associations, with about 6.1 million residents living within these communities.
In contrast, states like Arkansas and Mississippi have a lower prevalence of community associations, with only about 2% to 3% of their populations residing in such communities.

Financial Aspects of Community Associations

Average HOA Fees & Recent Trends

HOA fees vary widely based on factors such as location, property type, and the amenities offered. Recent data highlights these variations:

As of 2023, the national average monthly HOA fee was approximately $243.
In 2024, the median monthly HOA fee among existing homes increased to $148, marking a 14.7% rise from the previous year.
Alabama reported the highest average HOA fees at $458 per month.
South Carolina had the lowest average, with fees around $310 per month.
Single-family homeowners typically pay between $200 to $300 monthly.
Condominium owners often face higher fees, averaging between $300 to $400 per month.

These figures underscore the importance of prospective homeowners researching HOA fees specific to their desired location and property type.

Impact of HOA Fees on Homeowners' Financial Decisions

HOA fees can significantly influence both the affordability and desirability of a property.

Lenders include HOA fees when calculating a borrower's debt-to-income (DTI) ratio.Higher HOA fees can increase the DTI ratio, potentially reducing the loan amount for which a buyer qualifies.
Ongoing HOA fees add to monthly housing expenses, impacting overall affordability.
Unexpected special assessments can arise, requiring homeowners to contribute additional funds for major repairs or community projects.
Well-managed HOAs that maintain community standards and amenities can enhance property values.
Conversely, high or mismanaged fees may deter potential buyers, affecting resale value.

Benefits & Challenges of Living in Community Associations

Living in a homeowners association (HOA) or similar community setup offers a mix of advantages and responsibilities. Many homeowners choose these communities for the structure, amenities, and shared services, but there are also trade-offs to consider.

Benefits of living in community associations:

Access to amenities: HOA communities often include swimming pools, fitness centers, walking trails, and shared parks that are maintained year-round. These perks increase convenience and add value to the living experience.
Property value stability: Consistent enforcement of HOA rules and upkeep of common property help preserve home values. According to the Community Associations Institute, well-managed associations can positively impact resale prices.
Maintenance of shared areas: The HOA handles landscaping, trash removal, and upkeep of common spaces, reducing homeowners’ personal responsibilities.
Clear guidelines for residents: Rules on noise, exterior modifications, and parking keep neighborhoods orderly. For some, this structure provides peace of mind and predictable living conditions.
Reserve funds for large projects: Association reserve funds are used for long-term maintenance, which helps residents avoid sudden repair costs.

Challenges of living in community associations:

Monthly fees add up: The average monthly HOA fee in the U.S. ranges from $148 to over $300, depending on property type and location. These ongoing costs must be factored into a homeowner’s long-term budget.
Limited personal autonomy: Strict rules can feel restrictive, especially when it comes to property modifications, exterior paint colors, or landscaping preferences.
Board disputes and governance issues: Association boards typically comprise volunteer homeowners. Poor leadership, unclear processes, or internal conflict can affect operations and resident satisfaction.
Special assessments: If reserve funds fall short, residents may be required to pay special assessments for major repairs in addition to monthly fees.
Uneven quality across regions: Some states, like Florida and California, have strong HOA regulations and oversight. Others, such as West Virginia or New Hampshire, may lack consistent enforcement, which can impact resident experience.

Conclusion

The statistics behind community associations reveal more than how many exist, they show how much these organizations influence modern homeownership.

From rising participation rates and shifting regional trends to the financial impact of HOA fees, community associations play a growing role in shaping property values and homeowner decisions.

Understanding these stats helps real estate professionals, property managers, and homeowners make better choices.

Frequently Asked Questions

What is an example of a community association?

A homeowners association (HOA) for a residential neighborhood is a common example of a community association.

What is the highest hoa fee?

Luxury condos in major cities can charge over $3,000 per month, depending on location and amenities.

What does "HOA" stand for?

HOA stands for "Homeowners Association." It's a group that manages shared spaces in a community.

What are the characteristics of a community association?

Community associations collect dues, enforce rules, manage amenities, and maintain common areas for residents in shared housing communities.