Why HOA Fees Matter for Your Housing Budget
When budgeting for a condo or apartment, HOA fees are easy to overlook — but they add up fast. A $350/month HOA fee means $4,200 per year in additional housing costs on top of your mortgage or rent. In cities like New York or San Francisco, luxury high-rise HOA fees can exceed $1,000/month.
Older buildings tend to have higher fees due to deferred maintenance costs and less energy-efficient systems. Newer buildings may start with lower fees but can increase them as the building ages. Buildings with extensive amenities (gym, pool, doorman) charge more than basic buildings.
These estimates are rough US averages. Always request the HOA fee schedule and reserve fund status before buying or renting in an HOA community.
Frequently Asked Questions
Yes. HOA fees typically increase 2–5% per year. Special assessments can also be levied for major repairs (roof, elevators, etc.), potentially adding thousands of dollars to your costs.
Review the HOA's reserve fund (should cover 70–100% of projected costs), meeting minutes for any disputes, CC&Rs for restrictions, and whether any special assessments are planned.