Should You Buy a Home with an HOA? It Might Be More Important Than You Think

When buying a home, most people focus on mortgage rates, home prices, down payments, and closing costs. But one often overlooked factor is the HOA fee—a cost that may not apply to every home, but is increasingly common, especially in newer developments. So, what exactly is an HOA (Homeowners Association), and is it worth the cost?

What Is an HOA and What Value Does It Offer?

If you've ever driven through a neighborhood where everything looks clean, landscaped, and well-maintained, chances are there's an HOA behind it. HOAs are organizations that manage shared community spaces and enforce community rules to maintain property values and neighborhood aesthetics. Here are some of the benefits:

• Neighborhood Maintenance: HOAs take care of landscaping, snow removal, and maintenance of shared areas, helping maintain a polished, cohesive community look.

• Amenities: Many HOAs include access to fitness centers, pools, clubhouses, and security services—eliminating the need for separate membership or service fees.

• Property Value Protection: HOAs can enforce rules to prevent neighbors from neglecting their property, protecting the appearance and value of the community.

• Reduced Home Maintenance Responsibility: In some communities, HOAs may cover exterior painting, roof repairs, or other significant maintenance tasks.

HOAs Are Especially Common in Newer Communities

According to the Wall Street Journal, over 80% of newly built single-family homes are part of an HOA. Axios also reported that as of 2024, around 40% of all U.S. homes were in HOA-governed communities. So if you're house-hunting—especially in modern subdivisions—you're likely to encounter HOA properties.

How Much Does an HOA Cost?

Per Realtor.com, the median monthly HOA fee in 2023 was $125, but fees can range anywhere from $50 to over $500 depending on location, amenities, and community size. Some HOAs charge quarterly instead of monthly. Others may not charge anything at all.

Realtor.com’s chief economist, Danielle Hale, advises buyers to evaluate whether the services offered—like security or maintenance—align with their personal budget and lifestyle priorities.

What About the Chicago and Illinois Area?

In suburban areas like Naperville, Schaumburg, Northbrook, Vernon Hills, and other newer townhouse developments in the northwest suburbs, HOAs are almost standard. Many sellers highlight HOA benefits to attract buyers. Conversely, older single-family homes or city co-ops (especially in Chicago proper) may have low or no HOA fees—something to keep in mind when narrowing down your options.

Bottom Line: HOA Fees Are Not Just a Cost—They’re a Lifestyle Choice

HOA fees shouldn’t be seen as just an “extra expense.” They’re essentially outsourcing your time, convenience, and maintenance needs to a dedicated team. And they help maintain a community’s appearance and value over time. However, they’re not for everyone. Some HOAs enforce strict rules that may feel restrictive to homeowners who prefer more freedom with their property.

So, what’s your style?Would you rather pay a bit more for a well-managed, amenity-rich neighborhood—or live with fewer restrictions and more autonomy?

The choice is yours—but it’s a choice worth making thoughtfully.