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?
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.
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.
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!
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