HOAs create a more beautiful, safer, and all-around better place to live. This is reflected in higher property values. At least that’s what we’ve been told… and we happily repeat it.

But is it really true?

The Internet Says, No

If you ask the internet the answer is a resounding “no”! (Entertaining examples here, here, and here just for a few.)

Science Says, Yes!

But according to a study by George Mason University, HOAs do increase property values. On average, a home in a community association sells between 5% and 6% higher than an equivalent home in an equivalent non-HOA neighborhood.

Home Buyers Value HOAs

Why the higher price? Simply because home buyers place a higher value on homes in HOAs than they do on homes that are not part of an HOA. In other words, the market is voting for the promise of community associations with real dollars.

Proclaim the Truth

Of course this doesn’t mean that there aren’t very real problems in many HOAs. There certainly are. But at least we can continue to confidently proclaim that HOAs do increase property values. I think this is good news!

Sterling Jenkins

Founder and CTO at GoGladly
Sterling has lived in HOAs and has managed them for a living. A self-described nerd, Sterling finds books about HTML5 and games like Settlers of Catan unreasonably exciting. His nerdiness extends to his love of camping, fishing, and hiking in Utah's breathtaking Rocky Mountains. He especially likes enjoying the outdoors with his beautiful and supportive wife and 4 awesome kids.

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