As you search for your dream luxury condominium in Boston, the cost of HOA fees can certainly make an impact on your final housing decision
What are HOA fees?
Homeowners association fees, simply abbreviated as HOA fees, are funds that contribute to maintaining the common areas of a planned community, such as condominiums, townhouses, or free standing homes within a gated development. HOA fees are typically paid monthly by the homeowner.
The cost of HOA fees is determined by a variety of factors, including the community's location, available amenities, and general lifestyle.
Consider your budget and your must-haves for an ideal living situation. Are HOA fees worth the investment for your situation? Work with your realtor to determine which condo or shared community properties have proportionate HOA fees based on your needs.
What is the average cost of HOA fees in Boston?
According to a nationwide study conducted by Trulia, HOA fees are continuing to rise in major U.S. metropolitan areas. The four major findings from the study revealed:
- HOA fees have been increasing at a faster rate than home prices
- HOA Fees are higher in older buildings
- If a building has a fewer number of units, the HOA fees will be smaller
- If a unit has fewer bedrooms, the HOA fees will be smaller
Here's a look at Boston's HOA fee statistics from the Trulia study:
Boston, MA Metropolitan Area (2005-2015)
- 15.9%: Percentage of Homeowner Households Who Pay A HOA Fee in Metro Area, 2015
- $387: Weighted Average HOA Fee of Households That Pay HOA Fee, 2015
- 14.5%: Percentage of Homeowner Households Who Pay A HOA Fee in Metro Area, 2005
- $318: Weighted Average HOA Fee of Households That Pay HOA Fee, 2005
2005 vs. 2015
- 1.4: Point Change in Homeowner Households Who Pay A HOA Fee, 2005 to 2015
- 21.7%: % Change in Average HOA Fee, 2005 to 2015
- 2.0%: Per Annum Change
View Trulia's complete study: Attack of the Killer HOA Fees
Although HOA fees are rising, this should not necessarily deter a homeowner from looking at condominiums, townhouses, and other planned communities.
As property values increase, especially in metropolitan cities that are popular industry hubs, it is only natural that HOA fees would rise to reflect the nature. The appeal of condo living differs greatly from the appeal of single-family home living—it can be inferred that the condo-lifestyle permits a homeowner living in a metropolitan area to enjoy community amenities at their convenience, as well as allows the homeowner more flexibility to move his/her career.