The HOA Takeover: Why They’re Everywhere — and Whether They’re Worth It
If you’ve bought a home in the last decade, there’s a good chance you were handed a thick packet of rules along with your keys. Welcome to the HOA.
In Myrtle Beach, real estate buyers are constantly asking about community options without HOAs – but should they be trying to stay away from these types of communities? Homeowners associations have quietly become one of the defining features of American suburban life. In 1970, there were roughly 10,000 of them across the entire country. Today, there are approximately 373,000 — and about 12 new ones form every single day. More than 77 million Americans now live under some form of HOA governance, representing about a third of all U.S. housing stock. In 2023 alone, 82% of newly sold homes were part of an HOA community.
So how did we get here? And is living under an HOA actually good for homeowners? The answer, as with most things in real estate, is complicated.
Why Are There So Many HOAs?
The explosion of HOAs didn’t happen by accident. It’s the product of several overlapping forces that have shaped American housing for the past half-century.
1. Developers love them
The single biggest driver of HOA growth is new home construction. When a developer builds a planned subdivision, creating an HOA is often the path of least resistance. It allows them to sell homes with premium amenities — pools, fitness centers, gated entry, manicured common areas — without those costs falling permanently on the local government or the developer after the sale. The HOA collects dues, maintains the amenities, and keeps the community looking exactly the way the marketing brochure promised. Buyers get a turnkey lifestyle; developers get a clean exit.
In high-growth states like South Carolina, Florida and Texas, this model dominates. Master-planned communities — large-scale developments that contain multiple neighborhoods and HOAs within them — account for an enormous share of new construction. Florida alone handled 38% of all master-planned community home sales in 2024. For one of the most popular destinations in America, Myrtle Beach, home builders find that far more of their new homes are built in HOA communities; a trend that has been increasing since the early 2000’s.
2. Local governments have quietly offloaded responsibilities
There’s a less-discussed reason HOAs have proliferated: municipalities like them too. When an HOA takes over maintenance of roads, stormwater systems, landscaping, and common infrastructure within a development, that’s money and staff time the local government doesn’t have to spend. As cities and counties have faced tighter budgets, they’ve increasingly required or encouraged HOA formation as a condition of approving new developments. It’s a form of privatized public services — just paid for by residents’ monthly dues instead of taxes.
3. The amenity arms race
Modern homebuyers, particularly in suburban markets, have come to expect more from their neighborhoods. A community pool, a dog park, walking trails, a clubhouse for events — these are selling points that justify HOA dues in buyers’ minds and let developers charge higher prices. As one development offers amenities and sees strong sales, competing developments follow suit, each one requiring an HOA structure to sustain those shared spaces.
4. Property value protection
HOAs promise something deeply appealing to homeowners: that their neighbors can’t do something that tanks property values. No RVs permanently parked in driveways. No houses painted neon green. No long-dead grass or overgrown shrubs. Research from the Cato Institute suggests homes in HOA communities are worth about 5–6% more than comparable homes outside of them — a statistic the industry loves to cite, and one that has helped make HOAs an easy sell to buyers worried about their investment.
The Pros of HOA Living
For plenty of people, living in an HOA community is genuinely a positive experience. Here’s why. Maintained common areas and amenities
The most tangible benefit is access to shared spaces that would be unaffordable for an individual homeowner. A neighborhood pool, gym, tennis courts, or manicured green spaces are maintained and managed collectively — spreading the cost across hundreds of households. For residents who use these amenities regularly, the math often works in their favor. Consistent neighborhood appearance
Love them or hate them, HOA rules keep neighborhoods looking uniform. For many buyers, that consistency is a feature, not a bug. It means your immediate property value isn’t at the mercy of a neighbor’s neglect or dramatically different taste. When everyone maintains their lawn and exterior to a baseline standard, the whole street benefits. Dispute resolution and community structure
Without an HOA, neighbor disputes over noise, parking, or property encroachments often have no formal mechanism for resolution. An HOA provides a structure — imperfect as it may be — for addressing these conflicts. It also organizes community events, manages shared decisions, and gives residents a voice in how their neighborhood evolves over time. Higher resale values
The data is fairly consistent: HOA homes sell for more. Whether that premium is caused by the HOA itself or simply reflects the newer, better-located developments where HOAs tend to exist is debated. But if you’re buying with an eye toward resale, it’s a factor worth considering. Peace of mind on exterior maintenance
Many HOA communities — especially condo and townhome associations — handle exterior maintenance, roof repairs, and landscaping as part of the dues structure. For time-crunched homeowners or retirees who don’t want to manage those responsibilities, handing them off to a professional management company is a genuine relief.
The Cons of HOA Living
The downsides of HOAs are real, and they get more serious the more power a given HOA wields. The fees — and they keep rising
The average monthly HOA fee for a single-family home is now around $291, which adds up to nearly $3,500 per year. That’s on top of your mortgage, property taxes, and insurance. And unlike your mortgage payment, HOA fees can increase without your approval. Thanks to inflation and rising maintenance costs, 91% of community associations reported unexpected cost increases in recent years. In some markets, fees are dramatically higher — the average in New York City is over $650 per month.
Worse, fees aren’t the only financial exposure. HOAs can levy special assessments — one-time charges for major repairs or capital projects — that can run into the thousands. And if you fall behind on dues, the HOA can put a lien on your property and, in some states, foreclose. Loss of autonomy over your own home
This is where HOA rules frustrate homeowners the most. Want to paint your front door a bold color? Add a basketball hoop in the driveway? Park your work truck out front? Hang holiday lights past a certain date? In many HOA communities, all of these require approval — or are simply prohibited. The rules vary enormously from one HOA to the next, but in strict communities, the level of control over your own property can feel jarring. Inconsistent or petty enforcement
HOA boards are made up of volunteers — fellow homeowners, not professional administrators. The quality of governance varies wildly. Some HOAs are well-run, fair, and transparent. Others are notorious for selective enforcement, personal vendettas, or boards that use their limited power in ways that feel vindictive or arbitrary. Fines for minor infractions, threatening letters over trivialities, and feuds between neighbors played out through HOA channels are common enough to have become a cultural trope. Limited recourse when things go wrong
When an HOA makes a decision you disagree with, your options are limited. You can attend meetings, vote for different board members, or in serious cases pursue legal action — but litigation against an HOA is expensive and rarely worth it for the individual homeowner. More than half of HOA residents surveyed by Rocket Mortgage said they don’t enjoy living under their association. One in ten said they had considered selling their home specifically to escape it. The financial opacity problem
HOA finances are managed by volunteer boards, and transparency is not always their strong suit. Two-thirds of homeowners in HOAs say they’re skeptical that their association handles finances responsibly. Underfunded reserve accounts — money set aside for major future repairs — are a particular concern. When an HOA hasn’t saved enough and a big expense hits, every homeowner gets handed a large special assessment bill.
What to Look for Before You Buy
If you’re considering a home in an HOA community, do your homework before closing. Ask for and read the CC&Rs (covenants, conditions, and restrictions), the current bylaws, and the most recent financial statements. Check the reserve fund balance — a healthy HOA should have substantial reserves relative to its projected maintenance costs. Find out if there are any pending special assessments or active litigation. Talk to current residents if you can.
The right HOA in the right community can genuinely enhance your living experience. The wrong one can become a costly, frustrating headache that follows you home every day.
The Bottom Line
HOAs aren’t going away. If anything, they’ll keep multiplying as long as developers build planned communities and local governments continue to privatize neighborhood infrastructure. By 2026, roughly a third of all American homes are governed by one.
Whether that’s good or bad depends almost entirely on the specific association — how it’s run, how reasonable its rules are, and how well it manages its finances. Before signing on, know what you’re getting into. An HOA that works for your lifestyle can be one of homeownership’s best features. One that doesn’t can be its most persistent regret.
Carolina Bays Homes is a home builder in Myrtle Beach which also has full service real estate with Carolina Bays Real Estate. If you would like to ask questions about this article or suggest a topic for future posts, reach out to us here.
