It is fairly common knowledge that one of the main goals of an HOA is to maintain and even increase home values. How, exactly, is this done?
It is no secret that some of the biggest perks about living within one of these communities are the amenities that are included. Amenities can vary greatly from community to community, but most will have some combination of outdoor and indoor offerings for residents to enjoy. Some of the most common outdoor offerings include parks, pools, open spaces, picnic/BBQ areas and sports courts/fields. Some communities are even beginning to cater to their four-legged community members by offering dog parks. Some of the most common indoor facilities include gyms/fitness centers, community centers and clubhouses. In recent years, some HOAs have picked up on the need for spaces that community members can utilize for work or school. After 2020, more and more remote workspaces, created to provide a strong internet connection, as well as (possibly most importantly) a place away from the other members of the household, are beginning to pop up in communities in order to answer this pressing need.
These conveniences certainly make these neighborhoods nice places to live, but they also help to increase the value of the homes there. One study out of Portland suggests that simply having parks and/or open green spaces near your home can increase its value anywhere from 8% - 20% (that is most definitely nothing to sneeze at). When buyers begin to look for a home, they may be more inclined to seek out neighborhoods that can offer these bonuses, and are likely willing to pay a bit more to have access to them. This makes the neighborhood highly sought after, which raises the value of the homes there.
Following the Rules (Like it or Not)
While it may not always sound incredibly appealing to follow the rules of your association’s governing documents, and you may feel like you are doing a true disservice to your oh-so-rebellious teenage self (no one is the boss of you, after-all), odds are you will appreciate your neighbors doing so. HOAs tend to set fairly strict guidelines when it comes to the overall appearance and upkeep of the homes within the community. While it is true that you may confront bumps along the road when you set forth to paint your house, or install a shed, take heart in knowing that the (sometimes lengthy) process by which the HOA approves such undertakings helps to ensure that all of the love and money that you have put into your home over the years comes back to you. True, it may be a bit annoying that you are somewhat limited when it comes to choosing the very specific shade that you envision painting the exterior of your home, but this also means that your neighbor, who is passionate about covering the exterior of their home with a mural paying homage to Elvis Presley (don’t be cruel), will encounter the same push-back. You may dislike the fact that your association requires you to regularly mow your lawn (a chore that you have loathed since you were that rebellious teeneger), but this will guarantee that the house down the street does not let their front yard grow into something resembling a forest of storybook lore. Simply stated, the HOA’s main goal is to keep home values stable, and one of the most effective ways to do so is to maintain the visual aesthetic. While you may feel creatively stifled, your home’s value will be preserved.
A Place You'd Love to Live
If the HOA is really doing its job, then they are not only taking care of the things within the neighborhood, but the people as well. Opportunities to gather, celebrate, get to know one another, and create and strengthen bonds between residents are key elements in cultivating a strong sense of community. Events like food drives and fundraisers also allow neighbors the chance to come together to aid others within their neighborhood and beyond. These are the elements of a strong community that cannot necessarily be seen, but can most definitely be felt. All of these warm, fuzzy feelings make the neighborhood a desirable place to live, bringing in more potential buyers, increasing the demand for, and then the value of, the homes there.