Governed communities are getting harder to avoid. Homeowners associations account for more than 30% of the U.S. housing stock, reports the Foundation for Community Association Research, and that number will continue to rise as the Foundation predicts developers will form more than 3,000 HOAs in 2024.

Considering more Americans will be living in governed communities, we thought it would be interesting to see what trends have shaped these communities over the past 6 years. Are communities doing better today than they were in 2018? Just how much have fees increased? Read on to find out.

Table of contents

• The homeowner satisfaction survey
• Trends
  • Overall satisfaction
  • Community managers
  • Board members
  • Perks
  • Drawbacks
  • Reserve studies
  • Assessments

The homeowner satisfaction survey

The data used in this article was collected from the Foundation for Community Association Research’s Homeowner Satisfaction Survey. This survey is completed every other year. A few thousand participants who live in U.S. cooperatives, HOAs, and condominiums, provide anonymous answers to a survey company on behalf of the Foundation.

By using the same set of questions every time the survey is conducted, the Foundation for Community Association Research is able to benchmark shifts in sentiment and satisfaction, providing a clear picture of how community associations impact quality of life, property values, and neighborhood dynamics over time.

Trends

Overall satisfaction

Generally speaking, owners are still satisfied with their communities. Slightly fewer participants feel very good or good about where they live, while slightly more respondents feel neutral or bad about their governed communities. This is not entirely surprising given all of the challenges that communities have faced since 2020. After the pandemic, the cost of living has spiked. This has impacted everyone, and has created new stresses for condo and HOA communities.

New legislation and the presidential election have also created challenges and friction within community associations.   

Community managers

The need for experienced managers is not disappearing. While some communities have at least considered self-management to offset costs, most associations perform better with professional help.

Does your association employ a community manager?

• 57% said yes in 2018
• 61% said yes in 2020
• 66% said yes in 2022
• 62% said yes in 2024

Despite the fact that services cost more, a higher percentage of community associations employ managers or management companies now than they did in 2018.

In all cases, HOA communities were the least likely to employ a community manager. Interestingly, fewer housing cooperatives currently employ community managers. 80% of cooperatives worked with a manager or management company in 2018. Now only 64% report having them.

In your view, does the manager provide value and support to residents and the community as a whole?

• 73% said yes in 2018
• 74% said yes in 2020
• 76% said yes in 2022
• 72% said yes in 2024

The percentage of respondents who feel that community managers add value has not changed much in 6 years. The modest spike in 2022 could be attributed to covid. Managers went above and beyond to ensure owners and residents got the information they needed, and operations continued to move forward.

Board members

Board members have been busier than ever. Some communities are finding it hard to fill occupancies since board members do not get paid to serve their communities. It’s a lot of work for small thanks. Nonetheless, most board members do what they can to make their community better, and most owners recognize that.

Do you think the members of your elected governing board strive to serve the best interests of the community as a whole?

• 46% said for the most part, and 38% said absolutely in 2018
• 46% said for the most part, and 43% said absolutely in 2020
• 51% said for the most part, and 36% said absolutely in 2022
• 52% said for the most part, and 30% said absolutely in 2024

The majority of association members believe board members are doing a satisfactory job, and some think their board members are doing a very good job serving the community. While most would probably say improvements could be made, they may also feel that they would perform at a similar level if they were serving as a member of the board.

Perks: top 3 best things about living in a community association

A clean and attractive neighborhood continues to be the main perk for association members. That’s likely because owners can sell their homes for more when they belong to a governed community.

Some rules really do help to ensure homes are properly cared for, which makes them more attractive to potential buyers.

The second and third top perks have received similar support since 2018. Both of these association benefits matter to owners, but safety appears to be a more significant priority now.  

Drawbacks: top 3 worst things about living in a community association

Surprisingly, some respondents had no drawbacks to report. In 2020, 29% of respondents said that there was nothing bad about their community association. That number has dropped to 15% in 2024, but that still says a lot about some peoples’ living environments.

Paying dues has gradually become the worst part of belonging to a community association. This makes sense considering some associations have had to increase assessments by 10% or more over a calendar year to keep up with costs.   

Reserve studies

Some states are now legally required to conduct regular reserve studies. That being said, there hasn’t been a noticeable change over the past 6 years in the number of communities conducting reserve studies. 

If you live in a condominium or homeowners association, does your community have a reserve study to help plan for repair and replacement of major components owned by the community?

• No data for 2018
• 60% said yes in 2020
• 60% said yes in 2022
• 61% said yes in 2024

Assessments

When asked how much they were paying in assessments each month, the majority of respondents said they paid between $101 and $300 every month. That remained unchanged from 2018 to 2024.

Fewer people are paying less than $25 in assessments, but that makes sense considering it simply costs more to manage an association today than it did 6 years ago. It would be challenging to manage a community, even a small one, on such a modest budget.

How do you feel about the amount of your overall assessments that you pay for the services provided by your association?

• 54% said just the right amount, and 33 % said too much in 2018
• 62% said just the right amount, and 30% said too much in 2020
• 51% said just the right amount, and 37% said too much in 2022
• 49% said just the right amount, and 36% said too much in 2024

While more people feel that assessments are too high, the increase isn’t all that significant between 2018 and 2024. Despite assessment hikes, just about half of association members still believe that the assessments they pay are fair and justified.   

Conclusion

Community associations have experienced several significant events over the past 6 years. From new legislation to hefty insurance increases to labor shortages, condominiums, HOAs and cooperatives have had to be both flexible and proactive in order to maintain the property and meet expectations. In many cases, technology has been a key resource as it allows these associations to be more efficient without having to spend more money.   

Overall, people are still happy to be a part of a governed community. Though assessments and restrictions on exterior home improvements appear to be the biggest drawbacks, people appreciate that there is an added element of safety and regulation in community associations.  

Members agree that, for the most part, board members are doing what they can to maintain or improve the community, and professional managers are worth hiring.