Imagine, if you will. You just got another notice saying that your HOA dues are going up again. This is the third year in a row, and you are getting sick of it. These are pretty significant increases. They used to hardly ever go up, and when they did, it was just by a little bit. Is the board of directors or the management company mismanaging the property? What’s going on? Why is this happening?
I’ll explain.
Why Have My HOA Dues Gone up So Much, and Whose Fault Is It?
Although possible, your homeowner association is probably not being grossly mismanaged or something worse, like fraud. Of course, there clearly needs to be oversight to prevent waste and fraud. There are rules to follow, and financial transactions are traceable. You should pay attention, ask questions, and get involved.
We will talk more about some checks and balances, along with how you can make sure your HOA is being well-run, in a future blog. We have a blog post called "What’s Included in HOA Dues," which I encourage you to check out. Here we are going to look at why monthly dues have gone up so much lately.
Monthly Homeowner Dues Have Increased Everywhere!
Your community is not the only one experiencing HOA dues increases. We are seeing it in pretty much every community we are involved with through sales and management. It is not just a local phenomenon; it is happening all across the country. According to an analysis by Realtor.com, the median monthly HOA fees have increased 29% from 2019 to 2025 across the nation.
If it is not mismanagement and happening everywhere, why have HOA dues gone up so much? There are multiple reasons that HOA dues have been going up so much lately. When you start combining those reasons together, the increases can become quite significant.
Seven Reasons Most Homeowner Association Dues Have Gone Up
- Skyrocketing Insurance Premiums – Insurance premiums have been skyrocketing with increases way exceeding anyone’s expectations. In some cases, premiums almost double with little or no warning. These sudden and significant increases have affected some communities more than others, but all HOAs are feeling the effects.
- Low Reserves – Many HOAs have not sufficiently funded their reserves to pay for future repairs and replacement of important components of the property. Now they have to play “catch-up” to avoid special assessments and keep the property operating. Reserve studies, new lender requirements, and public awareness are speeding this process up.
- Inflation – General inflation has played a big part in increasing HOA dues. Cost of labor, rising repair cost along with the cost of things like landscaping, painting, and rising utility bills, all play a part in the increases we are seeing in HOA dues. When the price of everything else goes up, so do HOA dues.
- Aging Properties – As properties age, they are more expensive to operate and repair. The plumbing starts wearing out, so does the roof, electrical systems, and all sorts of things need attending to. There may also need to be updates, such as changing to more efficient lighting or updating the common area keys to a more modern electronic system.
- Deferred Maintenance – Some boards kept putting off upkeep and repairs in order to keep the monthly dues low. They might put off that paint job, figuring it doesn’t look too bad, while not understanding the protective role paint can play. Communities can only do this for so long before they find themselves in a financial bind with a rundown property in need of expensive repairs.
- New Laws – The onslaught of new laws is causing HOA dues to go up in a couple of ways. The most obvious is with the direct cost of complying with laws like SB 326, requiring balconies and other exterior elevated elements to be inspected and repaired. The second is the indirect cost of understanding and adhering to these regulations, making management and legal guidance more necessary.
- Changing Priorities – There was a day when boards felt it was their fiduciary duty to cut costs everywhere they could and keep the monthly dues down. Over the years, boards have started to understand their duty to include asset preservation, quality of life, and safety as even greater priorities than low dues. Of course, it is a balance, and we have come a long way.
Some Good News About the Increases in HOA Dues
Fortunately, there is some good news with all the increases we are seeing in HOA dues. Some of the upside in these increases include:
- Better Run Communities - With all these increases, communities and management companies have been looking closer to find inefficiencies and better ways to operate.
- More Homeowner Participation – Some associations would just let the same person, or two people, do all the work. Nobody asked questions or helped out. Now that the dues have gone up so much, often with special assessments, more homeowners are starting to get involved.
- Well-Maintained Properties - Dues are being increased to put money back into the properties. If your dues have not been going up, you should probably be concerned about how well the property is being maintained.
- Increased Reserves – Lots of the pressure to increase monthly dues is to increase reserves. When there are enough reserves, you have less chance of special assessments and a greater ability to handle surprises that may come up in the future.
- Better Than a Special Assessment – It is better to have higher dues now than a surprise special assessment show up in the future. In fact, if your dues have not been increasing, you may want to find out why. Hopefully is because the community is well-reserved and prepared.
Bottom Line
HOA dues have gone up a lot lately. It is probably not fraud or mismanagement, as it is happening all over the country. According to a Realtor.com study, HOA dues have increased nationally by 29% from 2019 to 2026. There are multiple reasons they have been going up, and when you combine them, the increases can be significant.
Seven reasons monthly HOA dues have gone up include skyrocketing insurance premiums, low reserves, inflation, aging properties, deferred maintenance, new laws, and changing priorities.
This is not all bad news. The silver lining is that these increases usually result in better-run communities, more homeowner participation, well-maintained properties, increased reserves, and it is better than a special assessment.
Thank You
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