Many real estate professionals (myself included) believed that condos and townhomes would become more valuable and in demand as baby boomers reached retirement age.
The idea being that this demographic, of roughly 70 million people, would downsize from their large single-family homes to enjoy the ease and low maintenance of a smaller condo or townhome.
Well, that’s not exactly what’s happening.
Instead of moving into multi-unit buildings as predicted, many baby boomers are transitioning into single-family homes in communities with homeowners associations.
Why an HOA Community?
Single-family housing developments with HOAs are growing in popularity across the county. According to new data from the U.S. Census Bureau, there were 840,000 single-family homes completed in 2018. Of those homes, 64 percent, or about 535,000, were part of an HOA.
Homeowners, including downsizing baby boomers, are choosing to pay the extra HOA cost because of the amenities offered, low ongoing maintenance, and the assurance of knowing their neighbors will adhere to aesthetics regulations.
Professionals are predicting new HOA homes will continue to take up a larger and larger share of the overall new single-family housing market.
Is it Right for You?
If you are looking to decrease the work associated with homeownership but not interested in moving into a condo or townhome, an HOA development could be right for you.
Just keep in mind, you will pay for the benefits of the HOA and you must follow the rules yourself! Before you buy, read the regulations to make sure you fully understand the agreement.
We know HOA developments and agreements. Let us help you determine if it’s right for you. Give The Garatoni Group a call at 612.821.7456 to discuss. We’re with you on every step!