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When it comes to buying a home, you might be laser-focused on what your monthly mortgage payments will be and how you'll build a budget around that expense.

But there's another housing cost you might need to consider, and it could take a huge bite out of your budget. Homeowners association and condo association fees are on the rise, and those costs can add up.

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The Wall Street Journal reported in early April that for single-family homeowners, median HOA fees jumped 26% from 2019 to $63 a month, according to Realtor.com data (1). And for condo owners, the median monthly condo fee was $420 in 2025 — a 29% increase since 2019.

An analysis by LendingTree found that in 2024, across the 100 largest metros in the U.S., about 17.5 million homeowners said they paid HOA or condo fees. And about 2.6 million of those people, nearly 15%, said they paid at least $500 a month in fees (2).

When you add these fees to the high mortgage rates and home prices Americans have been facing, along with higher costs for utilities and insurance, it's a combination that could leave some homeowners struggling to keep up.

HOAs are also becoming more common, with U.S. Census Bureau data showing that in 2024, 81% of new single-family homes sold belonged to homeowners associations (3).

HOAs are made up of volunteer homeowners in a real estate development, including condos, townhomes or single-family homes (4). HOAs typically set rules for the development, and they can also oversee amenities and shared spaces, charging dues to residents.

One California resident told The Wall Street Journal that his condo association fees have more than doubled since 2015 (1). Donald DeFesi said he pays $1,500 a month in fees; when those fees are combined with his insurance and property taxes, the total is more than what he pays on the principal and interest for his mortgage.

And a Colorado couple told The Wall Street Journal that their monthly condo fees were about $600 when they bought their home in 2019, but now they pay almost $1,300.

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If you're ready to buy a home, make sure you look into whether the property is part of a homeowners association.

If the property is part of an HOA, research what the fees go toward and what the fee increases have been in recent years.

According to HomeLight, HOAs may also require you to pay an upfront fee toward the HOA reserve, which is an emergency fund the association keeps in case of major repairs (4).

Condo and home buyers will also want to look into special assessments — whether there are any incoming special assessments, or if there have been in the recent past. Special assessments are one-time fees for maintenance or improvements that can't be covered by the association's reserve fund (5).

HOAs are required to declare special assessments to buyers, but it's worth talking to the HOA about whether there are any major infrastructure or repair projects coming down the pipeline in the future, and whether there are any discussions about upgrades or changes to shared amenities as well.

You can also look at the HOA's bylaws to see how special assessments are levied, and check out the financials of the HOA — if the reserve fund is low, it could mean the potential for a special assessment in the future (5).

HomeLight also recommends that you look into the CC&Rs (covenants, conditions, and restrictions) of a prospective HOA, as these are the rules that the HOA will enforce, which can sometimes be far-reaching.

CC&Rs can restrict things such as landscaping, paint colors, whether you can park an RV or boat, fences, pets and whether you can use your property for rentals (4).

If you already own a property that's part of an HOA or condo association, and you're unhappy with the fees, look into whether you can join the board of the association to help steer future spending.

You can also look for ways to lower your home expenses in other areas. While homeowners insurance is getting more expensive, spending just a few minutes shopping around for a better deal can help you save hundreds per year.

According to J.D. Power, 47% of policyholders saw their rates rise in 2025, and the average single-family homeowner already pays an eye-watering $2,370 in annual premiums.

This is bad news for those who simply auto-renew with their current provider every year. In such a quickly shifting landscape, it can pay to take 2 minutes to shop around for better rates.

OfficialHomeInsurance.com makes it easy to find the coverage you need without the hassle of calling multiple providers for quotes.

Simply fill out a few details and you could save an average of $482 a year.

And whether you’re looking to buy a new home or refinance your existing mortgage, taking the time to shop around could also save you thousands in the long run.

Freddie Mac recommends obtaining quotes from three to five lenders to secure the best possible mortgage rate. Even a small rate reduction can translate into significant savings over the life of a loan.

To make this process easier, places like the Mortgage Research Center (MRC) can help you quickly compare rates and estimated monthly payments from multiple vetted lenders.

By entering basic details — like your zip code, property type, price range and annual income — you can view mortgage offers tailored to your needs and shop with confidence.

If you are looking to invest in real estate, but don’t want sudden HOA fee hikes to eat into your returns, there are other options for investing in property that can give you the benefit of real estate without the HOA headaches.

You can tap into the fractional real estate market by investing in shares of vacation homes or rental properties through Arrived.

Backed by world-class investors, including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.

To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation.

Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.

And if you’re looking to move beyond short-term rentals, you might also consider investing in long-term multifamily and industrial rentals.

Accredited investors can now tap into this opportunity through platforms such as Lightstone DIRECT, which gives accredited investors access to single-asset multifamily and industrial deals.

Lightstone DIRECT lets individual investors tap into the institutional approach of Lightstone, one of the largest privately held real estate investment firms in the U.S., with $12 billion in assets under management.

The platform eliminates middlemen and the extra layers of fees that can add up in traditional real estate investing, usually known as “fee stacking.” This streamlined approach provides more direct access to institutional-quality deals.

Over nearly four decades, Lightstone has delivered strong risk-adjusted performance — including a 27.6% historical net IRR and a 2.54x historical net equity multiple on realized investments since 2004.

Each opportunity requires a $100,000 minimum and undergoes a rigorous review by Lightstone’s principals, including founder David Lichtenstein.

Lightstone also invests at least 20% of its own capital in every deal — roughly four times the industry average. With skin in the game, the firm ensures its interests are directly aligned with those of its investors.

— With files from Rebecca Payne

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We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

The Wall Street Journal (1); LendingTree (2); U.S. Census Bureau (3); HomeLight (4); Forbes (5)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.