Hoping to find a neighborhood that won’t leave you stretched to the limit financially every month? Your choice of state might matter more than you’d expect. Some states are filled with HOA communities and all the added fees that come with them, while others keep homeowner involvement to a minimum. Whether you’re trying to dodge these fees altogether or you’re open to paying a bit more for perks like a pristine pool or well-maintained gardens, it pays to know where HOA costs run highest. Here’s a rundown of which states top the list for HOA fees.
1. Missouri
Average Monthly HOA Fee: $469
Annual Cost per Household: $5,627
Missouri leads the nation with the highest average HOA fees. Homeowners in the state pay an average of $469 per month, amounting to over $5,600 annually. Approximately 311,000 households in Missouri pay HOA fees.
2. Arizona
Average Monthly HOA Fee: $448
Annual Cost per Household: $5,371
Arizona homeowners pay an average of $448 monthly in HOA fees, with about 875,000 households participating in HOA communities.
3. Oregon
Average Monthly HOA Fee: $402
Annual Cost per Household: $4,825
In Oregon, the average HOA fee is $402 per month. Approximately 228,000 households in the state pay these fees.
4. Colorado
Average Monthly HOA Fee: $401
Annual Cost per Household: $4,812
Colorado's HOA fees average $401 monthly, with 893,000 households participating in HOAs across the state.
5. Maryland
Average Monthly HOA Fee: $401
Annual Cost per Household: $4,812
Maryland homeowners pay an average of $401 per month in HOA fees, with 395,000 households contributing.
6. Tennessee
Average Monthly HOA Fee: $400
Annual Cost per Household: $4,800
In Tennessee, the average HOA fee is $400 monthly. Approximately 292,000 households in the state pay these fees.
7. Mississippi
Average Monthly HOA Fee: $396
Annual Cost per Household: $4,752
Mississippi homeowners with HOA fees pay an average of $396 per month. Only about 28,000 households are part of HOAs in the state.
8. Arkansas
Average Monthly HOA Fee: $394
Annual Cost per Household: $4,728
In Arkansas, the average HOA fee is $394 monthly, with 26,000 households participating in HOA communities.
9. Wyoming
Average Monthly HOA Fee: $393
Annual Cost per Household: $4,716
Wyoming homeowners pay an average of $393 per month in HOA fees. Around 21,000 households in the state are involved in HOAs.
10. Virginia
Average Monthly HOA Fee: $392
Annual Cost per Household: $4,704
Rounding out the top ten, Virginia homeowners pay an average of $392 monthly in HOA fees. Approximately 786,000 households in Virginia contribute to HOAs.
Understanding Why HOA Fees Vary Across Different States
There are a lot of reasons behind why HOA fees vary from state to state. Everything from how many urban centers are in a state, to the way local laws are written, to whether there’s a new housing boom, can shift how expensive HOA fees end up. Let's explore what’s influencing these differences and help you make sense of the HOA map.
1. City Centers and New Builds
Any time you’re looking at a busy city skyline that's packed with condos and townhomes, you are also looking at a lot of HOAs. Places with dense populations often have more HOA communities because there’s less room to spread out. When neighbors live in close proximity to each other, having an HOA step in and keep peace — and keep up appearances — can make life easier.
Areas with a lot of fresh, new construction homes also tend to have more HOAs. New neighborhoods with fancy flourishes and manicured green spaces often plan these associations from the start. One recent stat found that 78% of newly built single-family homes for sale were part of an HOA community. HOAs also happen to be more common in the South. A recent study found that 82% of new single-family homes in the South were in an HOA community.
2. State Laws and Regulations
Ever try to assemble something without instructions? It’s usually painful. HOAs thrive in places where lawmakers have done the extra work of writing the manual. Some states have regulations that make it easy to form and manage an HOA. When developers know the rules are clear, they’re more likely to set one up as well. Residents also appreciate knowing their rights and responsibilities are spelled out plainly.
California and Florida both have detailed laws that lay out how HOAs should work, and that helps encourage more of these communities to form. If you prefer a more independent approach — fewer rules, fewer fees — then states with fewer HOA-friendly regulations might be where to look.
3. Housing Market
In areas where home values run high, people usually feel better about paying HOA fees to protect their investments. If your home’s worth a small fortune, adding on monthly dues for tidy lawns and secure gates might feel like a smart tradeoff rather than an annoyance. When buyers come with high expectations and expect amenities like pools, tennis courts, and a dog park, HOAs pop up to supply that demand.
4. Cultural and Lifestyle Preferences
If you’re the type who appreciates a cohesive neighborhood look and well-maintained public spaces, an HOA-run community might feel like a dream. However, if you’d rather paint your door a bold, unconventional color and park your camper out front, an HOA might feel a bit too restrictive.
Retirees often gravitate to states that have warm weather and easy living — places like Arizona and Florida. These states also have a lot of HOAs and it’s for good reason. These communities often handle the heavy lifting (like lawn care), leaving retirees more time to enjoy their morning coffee and less time arguing with the neighbor over fence height.
5. Urban vs. Rural Communities
Big cities bring people closer together. When everyone’s stacked in rows of homes and condos, it’s natural for communities to form HOAs to handle issues like noise and parking. In more rural spots, you’ll find fewer HOAs. If your closest neighbor is a half-mile down the road, you might not need a committee to settle disputes or monitor who is parked where. Wyoming and Mississippi are more rural, so you’ll see fewer HOAs and, by extension, fewer households paying those monthly fees.
6. Historical Developments
In places where neighborhoods date back multiple decades, HOAs might be rare. Managed communities were a lot less common and homeowners mostly handled their own property maintenance and paint jobs. As a result, older areas might still remain HOA-free zones.
But states that experienced recent building booms often have newer communities built with HOAs from day one. Developers know modern buyers might enjoy planned amenities and consistent maintenance. Missouri, for instance, mixes old and new. Where newer subdivisions have popped up, so have higher HOA fees.
7. Economics
Homeowners with more disposable income are usually more inclined to pay for the convenience of managed communities. Higher median incomes and a comfortable cost-of-living ratio can mean residents don’t mind chipping in for community luxuries. For some people, it's worth the expense to never have to think about who’s going to fix that fence, or mow that lawn.
If you live in a state where wages run higher, that might line up with a willingness to pay HOA dues. After all, it might feel like a fair price to pay to live somewhere that always looks picture perfect.
8. Environmental and Geographic Factors
In some places, nature shapes HOA needs more than anything else. If you live in an area that gets a lot of snow, your HOA fees might help cover constant plowing and salting. If your home backs up to a scenic nature preserve, the HOA might handle everything from maintaining trails to replacing benches.
In Colorado, for example, HOA fees often tackle snow removal and the upkeep of outdoor rec areas. Residents appreciate that, especially come mid-January when the neighborhood still looks postcard-perfect and nobody’s breaking their back shoveling a communal sidewalk.
Final Thoughts on HOA Fees
Navigating HOAs and their fees can be a important part of your homebuying journey. Having to pay monthly fees might seem unappealing, but they can provide a lot of value. HOAs help to keep communities functioning smoothly and looking their best, and the shared amenities can improve your quality of life.
At NewHomeSource, we're here to help you find the perfect home that meets your needs. Whether you're looking for a community rich with amenities or a neighborhood with fewer fees and restrictions, we provide resources to guide you every step of the way.
Michael Letendre
Michael Letendre is a writer for NewHomeSource and Builder Magazine.