HOA Fees: The Hidden Cost Buyers and Sellers Need to Factor In

A growing number of U.S. homeowners are paying homeowner association (HOA) or condominium association fees — and the amounts can be steep. According to the U.S. Census Bureau’s 2024 American Community Survey, one in four U.S. homeowners paid HOA or condo dues last year, with about 3 million households paying over $500 per month.

Why HOA Fees Exist

Homeowner associations are nonprofit entities that collect monthly or quarterly fees to maintain shared spaces such as landscaping, clubhouses, swimming pools, and security systems. Condo associations serve a similar purpose but often carry higher dues since they also cover building maintenance, roofs, hallways, and elevators.

Developers increasingly include HOAs in new communities to protect neighborhood aesthetics and property values. Today, nearly 80% of new homes nationwide are sold in HOA-governed neighborhoods. This means HOA fees are no longer an occasional expense — they’ve become a standard part of modern homeownership.

What Buyers Need to Know

While HOA fees can enhance your community experience, they also impact affordability. Buyers often underestimate how these monthly or annual dues affect their overall housing budget. The median HOA or condo fee across the U.S. is $135 per month, but that number can climb quickly depending on location, amenities, and property type.

For instance, we worked with a client a few months ago exploring luxury condos in downtown Seattle, where HOA fees exceeded $1,000 per month. Those fees covered impressive amenities — concierge service, rooftop decks, gyms, and secured parking — but they also added a major recurring cost that factored heavily into purchase decisions.

Here in Washington State, about 26% of homeowners pay HOA or condo dues.

• Seattle: Typical fees range from $250 to $600 per month, often topping $1,000 in upscale buildings.

• Tacoma: Most fall between $200 and $400, with some nearing $500 depending on amenities.

• The statewide average sits around $388 per month.

These costs should always be reviewed alongside your mortgage, property taxes, insurance, and utilities to get a realistic picture of monthly housing expenses.

What Sellers Should Consider

If you’re selling a condo or a home within an HOA, your dues matter to buyers. When comparing listings, buyers often evaluate total monthly costs, not just the purchase price. A property with higher HOA fees must stand out with desirable amenities or maintenance coverage that justifies the cost.

Emphasizing what your HOA fees cover can make a real difference when selling. Detailing services like exterior maintenance, landscaping, water, sewer, trash, insurance, or recreation facilities helps buyers see the full value behind the dues. When we work with buyers and notice one building’s HOA fee is higher than another, we always compare what’s included—sometimes those higher fees actually save money by covering utilities or services that would otherwise come out of pocket each month.

Who Pays More: Owners With or Without Mortgages?

Interestingly, homeowners without a mortgage tend to pay higher HOA or condo fees than those still paying one. The Census Bureau found that mortgaged households paid a median of $120 per month, while debt-free homeowners averaged $184. In high-cost markets like New York, non-mortgaged owners paid nearly $800 per month.

The Bottom Line

As HOA and condo fees continue to rise, both buyers and sellers need to factor them into real estate decisions. For buyers, this means adjusting your budget before making an offer. For sellers, it means understanding how your property’s fees compare to others on the market and marketing it accordingly.

If you’re shopping for a home — or planning to list — we can help you evaluate HOA costs, amenities, and resale advantages so you make the smartest move possible.

🌟 Your Next Step: Let’s Talk

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Because your next chapter should be about joy—not worry. 💛

Susie | Real Estate Agent Serving clients in Washington for 20+ Years

P.S. Curious about your home’s value? Ask me for a free, no-obligation assessment today. 253-255-5966