Homeowners’ Associations (HOAs) are established to maintain property values and create orderly, well-managed communities. While their role is to ensure consistency and fairness, HOAs often become the target of significant frustration. For potential buyers and investors, understanding the pros and cons of an HOA is essential.
Whether you’re evaluating properties for personal use or considering investment opportunities, knowing how HOAs operate and what complaints commonly arise can help inform your decision-making process.
KeyLeads conducted a detailed campaign to uncover the most frequently cited grievances against HOAs. Using data from over 2,500 Reddit submissions and 200,000 comments, the analysis categorized complaints into specific themes, linked them to user-identified states, and matched them against HOA demographics and policies.
Most complained about issues
The majority of complaints (36%) focused on HOA actions and policies, such as restrictive rules, lack of transparency, overreach, and biased decision-making. These policies were the most frequently cited grievances in online forums.
Copy of KeyLeads – HOA headaches
Neighbor conflicts and financial concerns each accounted for approximately 14% of the complaints. Neighbor disputes included issues with noise, parking, pets, and trash management. Financial complaints centered on high fees and mismanagement of funds.
Other notable issues included:
- Condo/Apartment Concerns: Shared walls, guest parking, and rental regulations made up over 11% of grievances.
- Freedom/Personal Rights: Complaints about restrictions on signs, outdoor activities, and surveillance made up 10%.
- Aesthetic Disputes: Rules around fences, paint colors, and yard maintenance were a factor in 8% of complaints.
- Maintenance Issues: Concerns about neglected repairs, landscaping, and security systems rounded out the list at 7%.
HOAs by state
Not surprisingly, states with larger populations or higher HOA densities saw the most complaints. However, the analysis revealed intriguing trends about where these grievances were concentrated:
- California led with 18% of complaints, even though fewer than 40% of residents live in HOA-managed properties.
- Florida ranked second with nearly 16%, despite having the highest percentage of HOA residents (41%).
- North Carolina showed a disproportionate share of complaints, ranking third at 8.5%, despite being eighth in HOA population density.
- Texas had fewer complaints (7%), which may be linked to lower housing density in HOA neighborhoods.
- Illinois has almost a third of the population in an HOA, and the state comes in fifth for the highest number of complaints (5.3%).
- Colorado came in 8th for complaints but has the highest percentage of people in a HOA with over 2 in 5 residents in one.
KeyLeads – HOA headaches – the states with the most complaints about their Hoa
| State | % of Complaints | HOA housing units per square mile | What percentage of people in the state are in a HOA? |
| California | 18.09% | 30.60 | 37.03% |
| Florida | 15.96% | 59.1 | 41.45% |
| Texas | 6.91% | 8.2 | 19.76% |
| Illinois | 5.32% | 26.3 | 31.16% |
| North Carolina | 8.51% | 21.6 | 26.07% |
| New York | 1.06% | 26.1 | 19.11% |
| Massachusetts | 2.13% | 62.3 | 23.87% |
| Colorado | 1.60% | 9.2 | 42.22% |
| Georgia | 4.26% | 14.7 | 20.65% |
| Washington | 3.72% | 13.5 | 31.28% |
| Arizona | 4.79% | 7.8 | 30.00% |
| Virginia | 0.53% | 18.8 | 23.42% |
| Ohio | 1.06% | 15.2 | 14.00% |
| Michigan | 2.13% | 6.0 | 14.33% |
| Minnesota | 2.13% | 7.1 | 27.01% |
| South Carolina | 1.60% | 18.0 | 25.60% |
| New Jersey | 1.60% | 64.0 | 15.93% |
| Pennsylvania | 1.60% | 11.7 | 10.19% |
| Missouri | 0 | 4.6 | 15.25% |
| Wisconsin | 0 | 6.6 | 13.03% |
| Tennessee | 1.06% | 7.2 | 10.40% |
| Indiana | 1.60% | 9.6 | 12.68% |
| Connecticut | 1.06% | 33.6 | 12.91% |
| Oregon | 1.60% | 2.4 | 13.72% |
| Nevada | 1.60% | 1.9 | 17.16% |
| Utah | 2.66% | 2.5 | 18.64% |
| Alabama | 2.13% | N/A | N/A |
| Montana | 1.60% | N/A | N/A |
| Kentucky | 1.06% | N/A | N/A |
| Hawaii | 0.53% | N/A | N/A |
| Idaho | 0.53% | N/A | N/A |
| Maryland | 0.53% | N/A | N/A |
| New Hampshire | 0.53% | N/A | N/A |
What type of property is most likely to experience difficulties with HOAs?
Condos were the most common source of HOA dissatisfaction, representing nearly half of all complaints. Shared spaces, stricter rules, and higher fees often contribute to these issues.
Townhouses, on the other hand, are the property types least likely to experience issues with their HOAs with less than 1 in 5 complaints.
“Before committing to a property, buyers and investors should carefully review HOA policies,” advises real estate expert, Cynthia Seifert. “For buyers, it’s important to inquire about fees, common complaints, and rule enforcement. Investors, on the other hand, investors should evaluate whether the HOA’s policies will support long-term property values and align with their investment goals.”
Conclusion
HOAs remain a polarizing feature of homeownership, balancing community benefits with potential restrictions. Understanding the most common complaints and regional nuances can empower buyers and investors to make informed decisions, ensuring that their next property aligns with their personal or financial goals.
