For years, mortgage rates have dominated the conversation around housing affordability. But across the Valley, many buyers are discovering another expense that can quietly derail even the most carefully planned budget: homeowners association fees.
Nearly half of all homes for sale in the U.S. (about 44 percent) now come with HOA dues, and those costs are steadily climbing. The median HOA fee reached $135 in 2025, up from $125 in 2024 and just $108 in 2019. While those numbers may seem manageable at first glance, the reality is that HOA fees are far less predictable than a fixed mortgage payment.
According to Trevor Halpern, J.D., CEO of Halpern Residential at eXp, buyers are increasingly wary of the long-term implications. Unlike a mortgage, which can be locked in for decades, HOA dues are subject to change – often without direct input from homeowners.
HOAs are run by HOA boards. Board members are typically members of the community voted to the board by residents for terms ranging from (usually) 1-3 years depending on the bylaws. Once elected, the HOA board can raise dues, usually without a direct vote by all residents.
Most HOAs do not require any specific degrees, certifications, or professional experience to serve on the board. In the vast majority of communities, any homeowner in good standing can run for and serve on the board. You could have an HOA board with zero experience in accounting or financial planning, construction and maintenance planning, insurance and risk management, or legal compliance.
These blind spots can result in underfunded reserve accounts, unexpected special assessments, delayed maintenance, and, yes, sudden due increases to slap a Band-Aid on all the poor planning. When the reserves can’t cover a major expense such as foundation or roof repair, repaving a parking lot, or replacing a boiler or HVAC system, the board can issue a special assessment.
Depending on the number of residents, this can range from a few hundred dollars to thousands of dollars per unit. Have you noticed everything getting more expensive? HOA boards are subject to the same rising costs, including costs for services such as landscaping and pool maintenance. So, it’s just simple math: They have to cover those rising costs by raising dues. A survey of condominium associations found that 91 percent reported insurance premium increases. Rising insurance costs are considered one of the biggest factors driving up HOA dues.
Even with these considerations, HOA communities remain popular for their amenities, maintenance and neighborhood standards. For buyers who find the right home within an HOA, doing a bit of homework upfront can help avoid costly surprises down the line.
Key questions include how well funded the HOA reserve account is, whether any special assessments are planned, and how frequently dues have increased over time. Buyers should also ask about major repairs expected within the next five to ten years and whether the association has completed a recent reserve study.
In a fast-moving housing market like Phoenix, it’s easy to focus on purchase price and interest rates. But as more buyers are learning, HOA fees can play just as significant a role in long-term affordability, making them a critical piece of the homebuying equation.
