The housing bill nobody talks about

Editor’s note: This article first appeared in Money Matters, a newsletter from Britannica Money, on May 31, 2026.

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Rising HOA fees are changing the cost of homeownership.

© Jakub Krechowicz, rawpixel.com/stock.adobe.com; Photo illustration Encyclopædia Britannica, Inc.

If you own a home in a community with a homeowners association, you’re likely familiar with the amount you pay in HOA fees and how much more expensive they’ve become. Roughly 1 in 4 owner-occupied households paid HOA fees in 2024. Nationwide, homeowners are facing rising HOA dues and special assessments tied to insurance, maintenance, and repair costs.

But the frustration isn’t just about money. Buying into a community with an HOA also means buying into a system of rules and governance that can affect everything from your budget to your property rights, often with little homeowner participation or oversight.

The rising cost of homeownership in HOA communities reflects many of the same pressures affecting the broader housing market. Insurance premiums have climbed sharply in many parts of the country, especially in areas vulnerable to hurricanes, flooding, and wildfires. At the same time, the cost of labor, construction materials, and routine maintenance has increased, leaving many associations with higher operating expenses. Depending on the type of property, median HOA fees rose 26% to 29% between 2019 and 2025, according to Realtor.com.

For condominium communities in particular, new safety rules adopted after the 2021 Surfside condo collapse in Florida have added another layer of financial pressure. Associations that once delayed repairs or failed to adequately set aside money for maintenance and major structural work—known as “reserves”—are now being pushed to save more aggressively.

Some homeowners say the increases have become difficult to absorb alongside rising insurance costs, property taxes, and other housing expenses. But industry groups and property managers argue that many communities are simply facing the true cost of maintaining aging buildings, private roads, shared amenities, and other infrastructure that homeowners might otherwise pay for individually.

When you buy into an HOA community, you’re also agreeing to a set of rules and financial obligations intended to help maintain shared spaces and community standards. Monthly dues can increase, special assessments can be imposed for major repairs, and disputes over rules or maintenance can become expensive and difficult to resolve.

Because HOA boards are typically run by volunteer homeowners and many communities rely on outside management companies, homeowners may have little visibility into how decisions are made—or how money is being spent. Participation in meetings and elections is often low, which can leave a small number of people making decisions that affect an entire community.

As complaints about fees, governance, and transparency have grown, some states have started tightening oversight. Georgia recently adopted new protections for homeowners facing fines and foreclosure actions, while Tennessee now requires HOAs to carry insurance against fraud and theft. Idaho officials also investigated several associations accused of charging illegal transfer fees.

HOA fees and community rules can change after you buy a home, whether because of higher dues, special assessments, or revised policies. Understanding how an HOA operates before you buy can help you avoid surprises later.

HOA communities can offer convenience, shared amenities, and neighborhood upkeep, but they also come with financial obligations and rules that may change over time. Is an HOA right for you? Knowing how an association operates and the issues the community is facing can help you answer that question.