37% of Homeowners Regret Buying in an HOA Community—but Should They?

Part of the appeal of buying a home is becoming the master of your own domain—no landlords, no lease renewals, just a space where what you say goes.

It's understandable, then, that homeowners associations can cause some consternation. HOAs govern the rules of a community, from landscaping standards to exterior paint colors, and enforce them through fees and fines that homeowners have little choice but to pay.

According to a recent survey by Platinum Home Builders & Design, the friction is real: 37% of homeowners regret buying in an HOA community, and 64% say their HOA causes some level of day-to-day stress.

The number is striking, but it may not be as damning as it seems. 

"It might be influenced by the fact that the people who do have complaints about their HOAs tend to be more vocal about it than those who don't," says Johana Williams, a real estate professional. "It makes sense to think people enjoy the benefits of HOAs up until the HOA becomes a personal inconvenience."

That aside, Williams acknowledges the regret rate points to a problem.

"It reflects the fact that HOAs need to evolve with consumer expectations and there needs to be more transparency with buyers and potential HOA residents."

The case against: What’s driving the regret

The complaints that surface most often in HOA communities fall into three categories: money, rules, and governance.

Fees are an understandable and common flash point. The median HOA dues nationally reached $135 a month last year, up from $108 in 2019—and that’s before special assessments, which can arrive with little warning and run into the thousands of dollars. 

“When dues cannot cover major capital needs like a new roof or parking lot, the HOA is forced into a special assessment that owners have no recourse on and must pay,” says Brett Johnson, owner and real estate agent at New Era Home Buyers. “I have owned properties where an assessment came a couple of short months after purchase and materially changed the economics of the investment.”

Rules and restrictions are the second major source of friction. HOAs can regulate a surprising range of behaviors—what color you can paint your door, whether you can park an RV in your driveway, what kinds of plants are allowed in your yard.

For buyers who purchased specifically to gain autonomy over their space, these restrictions can seem like a betrayal of the idea of ownership.

The third category is governance and enforcement: how the HOA is actually run. The decisions the HOA makes and the way it lays down the law on its rules can be a source of real frustration for homeowners. 

“A homeowner might get a violation for a weed while a neighbor’s yard is a jungle. It feels arbitrary,” says Greg Field, a real estate agent at HomeSmart Realty Pros in Arizona. “These complaints are often justified because many HOAs are managed by third-party companies that prioritize volume over community nuance.”

A significant part of the frustration may come from buyers who simply didn't know what they were walking into. 

"A lot of people complain because they bought a home in what they saw as a 'nice' neighborhood, without really considering the implications of living in an HOA-controlled community, or realizing what makes that neighborhood seem 'nicer,'" says Williams. "When you drive down the street and see a bunch of neatly groomed houses, it's not because all the residents are like-minded. It's typically more so because they don't have a choice, and that's enforced by the HOA." 

Yet for all the frustration HOAs generate, they exist for a reason—and for the right buyer in the right community, they are worth dealing with.

The case for: What HOAs offer

The most obvious benefit of an HOA is maintenance. In a condo building, the HOA typically handles exterior upkeep, landscaping, and shared infrastructure like roofs, plumbing, and elevators—tasks that would otherwise fall entirely to individual owners.

The HOA also manages the shared amenities, such as pools and clubhouses, and infrastructure like community wells. Because a home’s neighborhood often plays into its value, this is crucially important for protecting not just your environment but also your investment. 

“HOAs do the heavy lifting for property values. They prevent your neighbor from turning their front yard into a permanent RV storage lot,” says Field. “If you are in a neighborhood with a shared pool or gated entrance, the HOA is essentially a nonprofit utility company ensuring those assets don't crumble and tank your home's resale value.”

It’s also fair to say that not all HOAs are created equal. So while they are becoming increasingly hard to avoid—44% of existing homes for sale last year were governed by an HOA, up from 34% in 2019—you should take the performance and standards of your HOA into account when looking at homes. You may find that certain HOAs are a net gain for home values. 

“I have purchased in communities with strong reserves where values held up better during market slowdowns, and the HOA only became noticeable when nearby non-HOA properties started showing neglect,” says Johnson. 

What to investigate before you buy

The homeowners who regret their HOA purchase usually have one thing in common: They didn't do enough homework before closing. Most of what you need to know is available—you just have to ask for it.

Start with the finances. Monthly dues are just the entry point—the more important number is the reserve fund.

"Do not just look at the monthly fee," says Field. "Demand the Reserve Study. This document shows if the association has enough cash to replace the roof or repave the streets in five years."

If reserves are significantly underfunded, a special assessment becomes much more likely, sometimes shortly after you move in.

Pull the meeting minutes from the past six months.

"That is where you find the drama," Field says. "You will see if they are currently suing a homeowner or if they are planning a 20% rate hike."

An HOA working through a major unresolved issue when you buy is one you'll be inheriting that problem from.

Read the covenants, conditions, and restrictions (CC&Rs) before you make an offer, not after. This governing document spells out what you can and can't do with your property. 

"If the CC&Rs feel too restrictive regarding your lifestyle—like parking a work truck or installing a specific battery backup system—that house is not the right fit, no matter how nice the kitchen looks," says Field. 

Finally, talk to the neighbors. Walk the street around 6 p.m. and ask someone whether the board is reasonable or fine-happy. It's also worth asking about the ratio of renters to owners—a high concentration of renters often correlates with stricter, more aggressive enforcement.

HOAs aren’t inherently good or bad—they’re a fit question, and something that should be reviewed case by case.

"Arm yourself with ample knowledge about fees, covenants, board members, and other things that might concern you as a future community member,” says Williams. “The more you know, the less the chance you'll get nasty surprises when you're already settling in.”