Housing Experts Project Another Year of Modest Growth for U.S. Condominiums and Homeowners Associations in 2024
While experts predict an improvement in mortgage markets and builder outlook for the U.S. housing market in 2024, nevertheless the number of new communities and existing home sales will be subject to a series of domestic and international issues. The general housing market probably will have some volatility, but the community association housing market should remain as the buyer’s choice for a new home or an existing home.
The number of new condominium communities and homeowners associations is expected to increase by 3,000-4,000 this year, according to projections by the Foundation for Community Association Research, an affiliate organization of Community Associations Institute (CAI).
Community associations, also known as homeowners associations, condominiums, and housing cooperatives, are home to 75.5 million Americans and represent 30-33% of the U.S. housing stock, according to the Foundation’s U.S. National and State Statistical Review for Community Association Data. The Foundation estimates the number of U.S. community associations will grow from 365,000 to as many as 370,000.
“While we’re optimistic about the continued growth of community associations, we also are closely monitoring the dramatic increase in U.S. home prices and increase in mortgage rates that has cooled the housing market,” says Dawn M. Bauman, CAE, executive director of the Foundation and CAI’s chief strategy officer.
Bauman adds, “The demand for housing continues to outpace the number of sellers in many states, such as Florida and Texas, where increased mortgage rates are impacting housing affordability. Another real concern is how labor and supply chain issues remain a real problem for homebuilders.”
Since the 1970s, community associations have been a popular housing choice for people around the world—especially for condominium buyers seeking proximity to city centers, public transportation, and schools. Planned communities also give local municipalities the ability to transfer the obligation of providing services such as trash and recycling pickup, snow removal, sidewalk and street maintenance and lighting, stormwater management, and more to homeowners.
The 2022 Homeowner Satisfaction Survey, a biennial, nationwide report conducted by Zogby Analytics on behalf of the Foundation, provides a better understanding of condominium and homeowners associations. Homeowners say the following about their community association living experience:
- 89% rate their overall experience as very good or good (66%) or neutral (23%).
- 87% say members of their elected governing board “absolutely” or “for the most part” serve in the best interests of their community.
- 76% say their community manager provides value and support to residents and their association.
- 89% say their association’s rules protect and enhance property values (68%) or have a neutral effect (21%); only 7% say the rules harm property values.
For more community association statistics, visit the Community Association Fact Book.