Challenges of Rising Homeowners Association Fees and Their Impact

The rising number of Americans falling behind on homeowners association (HOA) payments is becoming a concerning trend. Over the past three years, as HOA fees have continued to increase, more property owners are at risk of losing their homes. According to recent research by the property data platform Cotality, HOA liens have surged by 41.7% from 2022 to 2025. These liens serve as legal notices indicating that homeowners owe money to their association and must repay it before selling their homes.

In the last three years, the national count of HOA liens has gone from 177,260 to 250,951. HOA dues, often ranging into hundreds of dollars monthly, can severely strain household budgets. Cotality’s Chief Economist, Dr. Selma Hepp, explained that these fees can alone put a household’s finances into disarray, especially when compounded with rising insurance and taxes.

Typically, homeowners prioritize mortgage and utility payments over HOA dues. This trend persists as households try to avert bank foreclosure and aim to maintain essential services. However, ignoring HOA fees can have significant consequences, exacerbating financial strain during tight budget periods.

Understanding Homeowners Associations (HOAs)

HOA fees are mandatory payments for homeowners in communities managed by homeowners associations (HOAs). These private organizations manage areas like residential communities, subdivisions, or condominium buildings. They collect fees to fund repairs, upkeep amenities, and enforce property maintenance rules.

Homeowners purchasing property in HOA communities are legally bound to pay these fees. Monthly HOA dues generally range from $200 to $400.

Prevalence of HOA Fees in Homes

While condos and townhomes are more commonly associated with HOA fees than single-family homes, new constructions are increasingly adopting HOA models over older homes. Over recent years, homes requiring HOA fees have become more prevalent in the housing market.

Previously, homes subject to HOA fees were a minority, but this has changed significantly. A report from Realtor.com shows that in 2026, about 44% of homes for sale had a monthly HOA fee, compared to 34.3% in 2019. During this period, the median HOA fee increased from $108 in 2019 to $135 in 2026.

Consequences of Non-payment of HOA Fees

If homeowners fail to pay HOA dues, the association may file a lien against their homes, turning the owed amount into a legal claim. Although this doesn’t immediately lead to losing a home, it complicates sales and refinancing. Legal fees, interest, and late fees could exacerbate the debt issue.

In some states, persistent non-payment allows HOAs to initiate foreclosure processes. Minnesota, with its aggressive practices converting 47.5% of liens into foreclosures, is particularly challenging for homeowners. Nevada follows closely with a 40% conversion risk.

National data shows a rise in foreclosure filings linked to unpaid HOA dues between 2022 and 2025, dominated by a few states.

States Experiencing the Most HOA Challenges

Over a three-year period, foreclosure filings led by HOAs have surged by 46.1%. States including Florida, Texas, Nevada, California, and Arizona accounted for 85.2% of all foreclosure filings last year.

Florida homeowners face the highest relative HOA fees compared to home prices, impacted by costly metropolitan rates and frequent new constructions. Since the Surfside collapse, stricter building safety regulations have intensified HOA fees in Florida. The rise in natural disasters linked to climate change further increases these fees, also affecting Texas and California.

Between 2019 and 2023, homeowner insurance premiums in Florida rose by an average of 60%. Texas saw a similar 60% jump in premiums by 2024 compared to 2019 levels, whereas Arizona experienced a nearly 70% increase over six years.