According to the U.S. Census Bureau, a staggering 84% of newly built homes sold in 2022 were part of an HOA community. Real estate expert Michael Bordenaro sheds light on the implications of this surge, comparing it to the rise of electric cars and questioning its impact on housing choices.

Eliminating Housing Choices: A Drastic Shift

Bordenaro delves into the concerning trend of diminishing housing options, paralleling it with the mandatory adoption of electric cars. With 66% of all newly completed homes in 2022 falling under HOA jurisdiction, the decrease from 177% in 2011 raises questions about the autonomy of prospective homeowners.

In his video, Bordenaro reveals that approximately 30% of the U.S. population resides in HOA communities. He highlights the typical monthly fees, ranging from $200 to $300 in single-family home HOA communities, and discusses the substantial increase in the number of HOA communities over the years.

Bordenaro presents a visual representation of the exponential growth in HOA communities since 1970, emphasizing the significant rise in numbers from 10,000 to 355,000 as of the 2020 census. The graph encompasses single-family homes, condos, and co-ops, illustrating the widespread influence of HOAs.

The Role of Local Governments in HOA Mandates

Contrary to assumptions, Bordenaro asserts that local governments often mandate HOAs for newly built communities. 

He explains the reasoning behind this, emphasizing the shift of responsibilities such as infrastructure development and maintenance onto HOA residents, ultimately affecting property taxes and overall costs.

Bordenaro explores divergent opinions on living in HOAs, citing a homeowner satisfaction survey. While 89% express contentment with their overall HOA experience, another study reveals that 50% of homeowners dislike the arrangement, with 30% feeling that HOAs wield too much power.

Examining the broader landscape, Bordenaro notes that some states, including Florida, Maryland, and North Carolina, are introducing legislation to curb the power of HOAs. Instances of overreach prompt discussions on the need to balance HOA authority with homeowners’ rights.

Benefits and Drawbacks of HOA Living

Bordenaro weighs the advantages and disadvantages of HOA living, touching on reduced maintenance responsibilities, potential property value benefits, and community-oriented aspects. However, he stresses that the restrictive rules and potential for mismanagement by HOA boards can turn a pleasant community into a nightmare.

Delving into the financial aspects, Bordenaro addresses the average HOA fees across the country and questions whether the purported benefits justify the costs. He underlines the potential financial strain on homeowners, especially with rising property taxes and additional HOA fees.

Anticipating challenges ahead, Bordenaro discusses the impending impact of a 2025 mandate requiring condos to have full reserves. He warns of potential fee increases and financial hardships for residents, emphasizing the need for careful consideration before investing in HOA communities.

People in the comments talk about their experiences: “I heard someone in South Dakota whose HOA banned owning  firearms sued the HOA and won. What is amazing to me is that the HOA was even able to implement a policy like that to begin with in a place like South Dakota of all places. Now HOA is more powerful than our constitution? And the fact that the guy had to sue the HOA to exercise his 2nd Amendment right is what is so wrong about it.”

Others chimed in: “I lived in a HOA community and will NEVER be a part of one again!   It took s year’s worth of community meetings just to get an approval to change the color of the shutters on my house. It was horrible.”

Another person added: “They’re a scam and you get nothing in return. You pay to have rules made that can make your life miserable and the monthly fee can go up without any warning. There needs to be serious limits on HOA extortion! Was in one once but NEVER AGAIN!”

Personal Reflection

Sharing personal insights, Bordenaro discusses his experience living in a condo association, acknowledging the benefits and drawbacks. He reflects on the importance of having a well-functioning board and the impact of rules on residents’ lifestyles.

What are your thoughts? As HOAs continue their unprecedented growth, are we witnessing the erosion of personal choice in the pursuit of homeownership? Do the benefits of living in an HOA community, such as increased property values and reduced maintenance, outweigh the loss of individual freedom and choice?

In a housing market dominated by HOAs, should prospective homebuyers be concerned about the diminishing options for non-HOA living spaces? Is the trade-off between convenience and potential limitations in personal freedom worth it for those living in HOA communities?

Do You Like This Article? Share It!