The HOA trade groups keep promoting condos, townhouses, and active adult communities with HOAs. But consumers aren’t buying as many homes burdened by deed restrictions and mandatory assessments.
By Deborah A Goonan, Independent American Communities
How many times have we heard representatives from HOA industry trade groups utter the words, “Homeowner Associations are not going away?”
But that, dear readers, is nothing more than wishful thinking. Let’s start with the facts.
The construction industry is building fewer new HOA homes and condos
As explained in a previous post (Are homeowners, condo associations in a period of market decline?), the rate of new construction for single family homes with HOAs is leveling off or decreasing in recent years, in spite of the overall recovery in the real estate market.
Analyzing statistics compiled by Community Associations Institute (CAI), during and following the most recent deep recession, the rate of growth for new HOA communities and housing units is down by 25% and 61% respectively, showing signs of market decline. Growth in residency has remained relatively unchanged, while size…
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