When buying a home, you’re probably thinking about mortgage rates, home prices, your down payment, and maybe even your closing costs. But you may not be thinking about homeowners association (HOA) fees. While you won’t necessarily have these, you should know it’s possible, depending on where you decide to live.

A homeowners association is an organization that oversees a housing community (including shared spaces) and sets and enforces rules for things like upkeep. Some buyers love the perks that come with an HOA, while others may see the fees as an extra expense. The key is knowing what they cover and whether the benefits outweigh the costs.

The Benefits of Having an HOA

Think about this. If you’ve fallen in love with a home because of how beautiful the community is – maybe it’s the landscaping, the well-maintained streets, or the overall curb appeal – there’s a good chance the HOA is one of the reasons why it looks so good. Here are some of the biggest perks:

Neighborhood Maintenance: Many HOAs cover landscaping, snow removal, and common area upkeep, which helps maintain the neighborhood’s overall appearance.
Amenities: Depending on the neighborhood, an HOA could also include access to perks like a pool, clubhouse, fitness center, or even private security. In these cases, while you have to pay an HOA fee, you’re also saving money in some ways because you don’t need to have separate gym or pool memberships anymore.
Property Value Protection: Since HOAs enforce community standards, they prevent homes from falling into disrepair. So, you don’t have to worry about nearby eyesores hurting your property value.
Less Personal Upkeep: In some communities, HOAs even take care of exterior maintenance, roof repairs, or other shared responsibilities, reducing the work for homeowners.

HOA Fees: More Common, Especially in Newer Neighborhoods

Does every house have HOA fees? No, not all homes have them. But they are common, especially in newer communities. In fact, over 80% of newly built single-family homes are now part of an HOA, according to the Wall Street Journal (see graph).

But homeowners associations do not only apply to new builds. Homes that were previously lived in may also have an HOA fee. According to Axios, roughly 4 out of every 10 homes had an HOA in 2024.

HOA Fees and Your Home Search

Ask your agent which homes do and do not have HOA fees as part of your search, and how much the fees are. Some neighborhoods have quarterly dues, some have monthly, some don’t have any at all. To give you some baseline, though, the median HOA fee rose last year to $125 per month, based on a report from Realtor.com.

But remember, the costs vary, and sometimes these fees give you access to great perks. As Danielle Hale, Chief Economist at Realtor.com, explains:

“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.”

Experts Say About Homeowners Association Fees

Before buying a home in an HOA community, review the rules and homeowners association fees to know exactly what’s included, how that fits into your overall budget, and what restrictions may apply.

Would you rather pay an HOA fee for added perks, or skip it and have complete control over your property? Let’s talk with our Chicago real estate professionals about what’s best for you.