Part of the rising mortgage costs in the United States is due to fees residents pay to homeowners’ and condo associations:

Rising home insurance premiums and homeowners association fees have also contributed to growing monthly expenses. The median annual cost of property insurance increased by 5.3 percent last year, the Census survey found, with bigger increases for larger homes. Nearly a quarter of all U.S. homeowners paid fees to a condo or homeowners association last year, at a median cost of $135. In Nevada, Florida and Arizona, 45 to 50 percent of households paid such a fee.

The Census report has more details. Where do more residents pay association fees?

Some states like Arizona, Florida, and Nevada that typically attract a lot of retirees to planned communities had higher proportions of homeowners who reported paying condo/HOA fees.

Others with among the smallest shares: Maine, North Dakota, Rhode Island, South Dakota, and Wisconsin.

The prevalence of these associations differs quite a bit across contexts. And even within places with more associations, some people may more than others:

The amount of condo and HOA fees differed widely between and within states. In 2024, about 5.6 million or 26% of homes paid less than $50 a month and about 3 million homes paid more than $500 a month.

The national median (half were less and half more) monthly fee was $135. But a large share of homeowners in some states — most notably New York (64%) — reported paying more than $500. So did about half of homeowners in the District of Columbia and in Hawaii. 

These fees could be going up for multiple reasons:

1. Increased repair and maintenance costs. Replacing roofs or maintaining common areas or other regular duties of these associations cost more, just as almost everything costs more in recent years.
2. Increased insurance costs. As homeowner’s insurance goes up, so would insurance for associations and larger buildings.
3. With the cost of current needs going up, this could also affect projections about the future. As associations think about their reserves and future outlays, they may need more to keep up with in order to have a required and/or prudent amount on hand.

It may be difficult to reduce these costs easily as these associations have specific responsibilities to residents.