For many Americans, retiring in one of the fair-weather Sun Belt states is a long-held dream—but it can carry a steep price in homeowners association (HOA) or condominium fees that aren’t always factored into the budget.
Last year, a fourth of all owned U.S. households, totaling 21.6 million, paid either HOA or condo fees, according to the detailed new 2024 American Community Survey (ACS) data released by the U.S. Census Bureau on Sept 11.
A homeowners association refers to an organization made up of the owners of condos, townhouses, or single-family homes in a planned or gated community.
Monthly HOA fees paid by community members are used to provide security and maintain the shared areas of that community, including swimming pools, parking lots, and clubhouses.
Condo fees are similar, but they are typically higher than HOA dues and go toward building maintenance, common area utilities, and contributions to a reserve fund for future major repairs.
Homes with HOA and condo fees were not evenly spread across the U.S.
A trio of Sun Belt states—Nevada, Arizona, and Florida—stand out for having the highest share of households saddled with additional monthly housing costs.
Realtor.com® senior economist Joel Berner says that the survey’s finding reflects what’s been happening in the housing markets of many Southern and Western states in recent years, which has seen new construction booming.
“Our previous research has shown that HOAs are most common among newly built homes and communities,” explains Berner. “These three states are fast growing and have high levels of new construction, so it’s not surprising to see higher incidence of HOA obligations there.”
In Nevada, Arizona, and Florida, new-construction homes in master-planned communities, which typically come with HOAs, make up a higher share of the properties.
Nevada tops HOA list
Nevada was at the top of the ACS ranking, with more than half (51.3%) of all the homeowners in the Sagebrush State being on the hook for either HOA or condo levies.
The median monthly payment in Nevada last year amounted to $95, or $40 lower than the national median.
Notably, a homeowner without a mortgage in Nevada paid slightly more, at $114 per month.
Tania Jhayem, a real estate agent and investment specialist with Urban Nest in Las Vegas, says that the proliferation of HOAs in Nevada comes as no surprise to her.
“Here in Las Vegas, the majority of homes we sell are in communities with HOAs,” she tells Realtor.com. “Buyers like that HOAs maintain neighborhood standards, help preserve curb appeal, and often provide amenities like pools, parks, or security.”
But Jhayem points out that some home shoppers recognize that having an HOA comes with some downsides.
“Many feel the extra cost adds to the already difficult affordability challenges in today’s economy, so they weigh carefully whether the services justify the monthly expense,” adds the agent.
Beyond the added expense, Jhayem says she has clients who specifically look for homes not located within an HOA to avoid having to contend with rules and restrictions commonly associated with this type of living arrangement.
“Many have expressed that they don’t want to be told what they can and can’t do with their home,” she notes.
Ultimately, Jhayem says buyers consider whether the services provided by an HOA are worth the extra cost, and whether the rules align with their lifestyle.
“For some, a $100 to $200 monthly fee for a well-kept neighborhood is absolutely worth it,” she says. “For others—especially first-time buyers or investors watching their numbers—HOA fees can be a deal-breaker.”
Arizona and Florida in top three
Arizona, another popular retiree destination, had 44.7% of households burdened with condo or HOA fees last year, with a median monthly payment of $98.
Florida was close behind, with 44.3% of homeowners having to budget for additional community maintenance costs each month.
Among the three states with the highest share of homes with HOA or condo fees, Florida stood out for having the highest median payment, at $230.
The condominium sector of Florida’s housing market has been in a state of crisis following the passage of a state law aimed at making older buildings safer.
The legislation was adopted in the wake of the partial collapse of Champlain Towers South in Surfside in June 2021 that killed 98 people.
Under the new law, buildings 30 years and older must undergo a safety inspection, and homeowners and condo associations are required to set aside sufficient reserve funds for any necessary repairs.
The adoption of the stricter safety regulations has sent HOA and condo fees skyrocketing for many owners, leaving some in fear of losing their homes and prompting others to sell in a hurry.
Sam Labkovsky, a computer programmer from New Jersey who owns a second home in North Miami Beach, tells Realtor.com that his monthly HOA fees surged a staggering 250% in a span of six years—and more than doubled since 2022.
In 2018, Labkovsky and his wife were visiting a relative who lives at Mar-Len Gardens Co-ops, a gated community for adults over age 55, when he decided to purchase a two-bedroom unit in one of the buildings.
With a $72,000 price tag, paid in all cash without a mortgage, and a monthly HOA fee of $380 a month, Labkovsky says it seemed like a good deal at the time.
But according to the homeowner, everything changed in 2022, following the passage of the building safety law. That year, Labkovsky’s monthly HOA fee ticked up to $413—but that was only the beginning.
Labkovsky says in 2025, his monthly charge increased to $880. In addition, he expects to owe special assessment fees totaling $2,500.
While the owner concedes that he and his wife are not struggling financially with their day-to-day expenses, having to pay what he called “unreasonable” dues has left a bad taste in his mouth.
“It’s like if somebody sticks their fingers in your pocket and takes an additional $5,000 or $6,000 from your pocket,” he says.
Labkovsky says he has repeatedly raised questions about the surging fees but has not received satisfactory answers. Fed up with the rising fees, the owner has decided to put his first-floor unit up for sale.
“Because there is no reason to keep this. It’s like a suitcase without a handle,” says Labkovsky, adding that so far, he has not received any offers.
Asked if he would consider buying another similar property in the future, Labkovsky quickly dismissed the idea: “Oh, no, I don’t think so.”
