TEXAS — If you own a home or condo in Houston, Austin or San Antonio, a recent study shows you’re more likely to pay homeowner association (HOA) fees than most homeowners around the country. As a result, you’re more likely to feel the impacts of the rising HOA fees.
Some Cypress property owners say that, on top of the rising costs of owning a home, they have watched their HOA fees go through the roof. Jeffery Byers said his HOA fees have increased by hundreds of dollars a month over the last six years, and he wonders how his HOA is spending his hard-earned dollars.
“We want our property to look nice, but how would you like to have all of these bricks falling in this lake like that? It’s embarrassing,” he said, pointing to the neighborhood lake.
Diane Sanders owns a family-run real estate business, helping clients all over West Houston, including the Cypress area.
“Since COVID, we’ve seen them go up more here lately,” she said. “A lot more because of insurance.”
Skyrocketing insurance and property taxes are already taking a toll on homeowners around the country and in Texas, where HOA costs have ranged from $100 to $500 a month, according to homeowners.
A new study from the online loan marketplace LendingTree found that Houston is third in the country on the list of cities where homeowners are most likely to pay HOA fees, with more than half of all homeowners paying HOA or condo fees. Austin ranks eighth and San Antonio ranks 17th.
Las Vegas and Orlando take the first and second place spots, respectively.
“We probably have 75% of our active listings are in an HOA,” Sanders said. “Whereas, compared to the nationwide, it’s more like 40% to 45%.”
Matt Schulz, chief consumer finance analyst for LendingTree, said inflation and rising labor costs are part of the domino effect impacting affordability, especially in higher income communities with golf clubs and lots of scenery.
“It’s really important to understand what you are getting for those costs, because just how strong the return on investment is with these HOA fees is really just about your lifestyle,” said Schulz.
If you’re dead set against paying HOA fees, there are other options, but Schulz said you can expect fewer amenities.
“When you are shopping around for a new home, a new condo, it is something that is important to ask about and to understand before you get too far down the line,” he said.
Despite the rising costs, Schulz said the American dream is still alive, and Sanders agrees.
“Be sure you get a resale certificate upfront for your property. Most buyers have never heard of that. Ask your agent and be sure and get one of those. It will tell you a lot of information about the reserve account, about the insurance, about lawsuits, about bylaws,” she said, adding those HOA fees may be here to stay, but a little research will go a long way.