Reality check: HOA managers face decline of their industry, like it or not

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.

Independent American Communities

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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One Reply to “Reality check: HOA managers face decline of their industry, like it or not”

  1. If HOA Management Agent was required to complete a ‘forensic accounting’ every three (3) years conducted by an outside source would stop the majority of legal complaints. The outside accountant must accredited to conduct a “forensic accounting”, Not the same firm as the annual audit conducted for the annual meeting.

    Liked by 1 person

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