A significant shift in the American housing landscape is underway, with homeowners association (HOA) fees becoming an increasingly common and costly feature for prospective buyers. According to a recent study by Realtor.com, nearly half of all homes currently on the market now come with these mandatory monthly charges, adding another layer of financial consideration for those seeking to purchase property.
The Growing Prevalence and Cost of HOA Fees
The data, published in late January 2026, indicates that 43.6 percent of listed homes across the United States are subject to HOA fees. The median monthly cost for these fees now stands at $135, a notable increase from $108 recorded back in 2019. This represents a substantial 25 percent rise over a six-year period, significantly outpacing general inflation and wage growth in many regions.
Historically, HOA fees were primarily associated with condominium buildings and newly constructed community developments. However, as noted by Realtor.com Senior Economist Joel Berner, this is no longer the case. "HOAs are no longer confined to condos or brand-new developments," Berner stated. "Rising insurance costs, stricter building safety standards and higher labor and material prices are pushing associations to raise dues, making monthly HOA fees a much more common - and more costly - feature of homeownership than they were even a few years ago."
Geographic Hotspots for HOA Prevalence and Expense
The study reveals distinct geographic patterns in both the prevalence and the financial burden of HOA fees. At the state level, Nevada leads the nation with 68.3 percent of listed homes carrying HOA fees, followed closely by Arizona (65.1%), Florida (64.6%), Delaware (63.8%), and Utah (58.2%).
When examining the actual cost burden relative to mortgage payments, Florida emerges as the epicentre of high HOA expenses. The Sunshine State is home to seven of the ten metropolitan areas where HOA fees constitute the highest percentage of a typical mortgage payment on a median-priced home.
The most financially impactful areas include:
- Miami-Fort Lauderdale-West Palm Beach, FL: Median HOA fee of $617, representing 26.9% of the mortgage payment.
- Panama City-Panama City Beach, FL: Median fee of $532, constituting 22.7% of the mortgage.
- Naples-Marco Island, FL: Median fee of $711, making up 20.3% of the mortgage.
In these three Florida metro areas, HOA fees account for at least one-fifth of the mortgage payment on a median-priced home, creating a significant additional financial hurdle for buyers, particularly retirees attracted to the state's climate.
Broader Context of Housing Affordability
This surge in HOA costs arrives during a period of profound housing affordability challenges across the United States. A separate analysis by Bankrate in December 2025 found that more than three out of four homes on the market are unaffordable for the average household. While the typical household earns approximately $80,000 annually, Bankrate noted that an income nearing $113,000 is required to afford a median-priced home in today's high-cost, low-inventory market.
The addition of a median HOA fee of $135 per month, or $1,620 annually, further elevates the income threshold needed for homeownership, pushing the dream further out of reach for many American families. This sentiment is echoed in broader polling; a recent New York Times analysis of U.S. voters found that 54 percent believe housing costs are fundamentally unaffordable.
Controversies and Political Responses
The expansion of HOAs has not been without controversy. Beyond the financial strain, these associations have garnered negative attention for stringent enforcement of community standards. Notable cases include a five-year legal battle in a Florida retirement community over a homeowner's decorative cross, which resulted in a $70,000 settlement, and another instance where a Florida woman faced jail time due to an HOA lawsuit concerning brown grass and a dirty mailbox.
In response to the nation's overarching housing crisis, President Donald Trump has taken executive action aimed at lowering costs and boosting inventory. A key move involved signing an order to ban Wall Street investors from purchasing single-family homes, with the intent of opening up more supply for individual buyers and potentially applying downward pressure on prices.
However, many housing experts remain sceptical that this measure alone will substantially improve housing availability or affordability for the average American. The complex interplay of construction costs, interest rates, local regulations, and now, rising HOA fees, presents a multifaceted challenge that no single policy is likely to solve quickly.
For prospective buyers, the message is clear: the financial calculus of homeownership now must rigorously account for the growing likelihood and rising cost of mandatory HOA fees, transforming what was once a niche concern into a mainstream factor in the American property market.
