While homeowners know to budget in mortgage payments, there’s a not-so-hidden monthly cost that millions are paying, and that cost is increasing—often significantly—each year.
One in three current homeowners—or 17.5 million people—across the 100 largest metros pays monthly homeowners association (HOA) or condo fees, according to a new report from consumer finance site LendingTree, which analyzed the U.S. Census Bureau 2024 American Community Survey with one-year estimates data.
And at least 15% of those people—or 2.6 million—paid over $500 a month, adding up to $6,000 or more annually.
“When you’re paying $500 or more a month, that’s a really big deal, especially when you consider how tight many Americans’ budgets are,” says LendingTree’s chief consumer finance analyst, Matt Schulz.
“That’s money that can’t go to other financial priorities, such as building an emergency fund, paying down high-interest debt, or saving for retirement.”
About 1 in 5 (21%) homeowners surveyed by LendingTree lives in a community with an HOA, a number that jumps to 34% with those earning over $100,000 yearly.
HOA fees generally cover community maintenance such as trash and snow removal, care of lawns, and building and common area repairs. In some developments, especially high-end ones, these common charges can cover amenities such as gyms, pools, or pickleball courts.
These fees are one of the most burdensome costs of being a homeowner. According to the site’s survey, 82% of respondents said their fees went up in the past three years, including almost half who said they went up “significantly.”
Who pays the most?
The metro that pays the most won’t shock anyone: New York City. Here, 53.4% of HOA-paying homeowners shell out $500 a month or more, with nearly 30% paying over $1,000 a month.
Following New York City, the metros with the highest share of homeowners paying $500 or more a month are: Honolulu, Miami, Cape Coral, FL, Bridgeport, CT, San Francisco, Boston, San Jose, CA, Los Angeles, and North Port, FL.
It probably comes as no surprise that Florida takes up three of the top 10 spots.
“Many buildings are now reaching the age where deferred maintenance can no longer be postponed,” Ana Bozovic, a Miami-based real estate agent and founder of real estate research firm Analytics Miami, tells Realtor.com®. “The post-Surfside regulatory changes accelerated this reality by mandating structural inspections, reserve studies, and full funding of reserves.”
Bridgeport, CT, at No. 5, isn’t a pricey city, but the metro includes the affluent suburbs of Danbury and Stamford.
Do monthlies matter?
Given that 30-year mortgage rates still hover at 6.38%, home prices are softening but still at historic highs, and other costs such as homeowners insurance continue to climb, experts say HOA fees matter now more than ever.
“The average buyer considers monthly fees a lot, especially at the lower price points where buyers are more sensitive to their monthly outlay,” Lisa K. Lippman of Brown Harris Stevens in New York tells Realtor.com.
Even average-cost New York City buildings can include costly features such as unionized door attendants and full-time superintendents, and amenities like fitness centers, gardens, and roof decks—all of which must be paid for.
Paradoxically, many of the newer, higher-end, amenity-laden buildings can have lower fees than smaller, boutique buildings with few or no amenities, simply because the larger ones have many more residents to share costs.
Luxury New York City broker Frances Katzen, of Douglas Elliman, tells Realtor.com that even high net worth individuals take monthly fees into account.
Katzen has “repeatedly” seen wealthy clients rethink deals once the full scope of the monthly outlay becomes apparent.
“Buyers are extraordinarily sensitive to monthly costs right now, arguably more than at any point in the last decade,” she says.
Are HOA fees worth it?
While HOAs often get a bad rap—with headlines about homes sold at auction over small unpaid fees or penalties for grass that’s a couple of inches too long—most HOA-paying owners aren’t complaining.
According to the survey, 86% of homeowners find the association rules reasonable, while a whopping 70% claim their fees are justified given the benefits they receive. Also, 43% said their HOA protects their property value and 36% call it a “necessary trade-off.”
It also pays to remember that common charges, especially in a city like New York, can include everything from heat and hot water to property taxes and building insurance.
“High HOA fees aren’t automatically a bad thing,” says Schulz. “The key is understanding what you’re getting in return. If the fees cover meaningful services, amenities, and long-term maintenance, they may be well worth it.
“If not, then the place just may not be right for you.”
New York, NY
Percentage of homeowners paying more than $500 a month: 53.4%
Median HOA fee: $558
(Realtor.com)
Honolulu, HI
Percentage of homeowners paying more than $500 a month: 52.4%
Median HOA fee: $526
Miami, FL
Percentage of homeowners paying more than $500 a month: 39.5%
Median HOA fee: $410
Cape Coral, FL
Percentage of homeowners paying more than $500 a month: 37%
Median HOA fee: $411
Bridgeport, CT
Percentage of homeowners paying more than $500 a month: 35%
Median HOA fee: $424
San Francisco, CA
Percentage of homeowners paying more than $500 a month: 31.8%
Median HOA fee: $349
Boston, MA
Percentage of homeowners paying more than $500 a month: 29.9%
Median HOA fee: $386
Los Angeles, CA
Percentage of homeowners paying more than $500 a month: 24.3%
Median HOA fee: $343
North Port, FL
Percentage of homeowners paying more than $500 a month: 23.1%
Median HOA fee: $275