Homeowner Associations Industry Profile

Organizations in this industry create and enforce restrictions on what homeowners can do with their property to maintain property values and the look and feel of a particular community. No major organizations dominate the industry.

There are more than 370,000 homeowner associations (HOAs) in the US, representing over 50% of all owner-occupied households in the country. The industry has a combined annual revenue of about $30 billion.

COMPETITIVE LANDSCAPE

Demand is driven by construction of communities in which homeowners want to sustain property values through covenants, conditions, and restrictions. The viability of individual associations depends on efficient fee collections and cost controls. Larger associations may enjoy some economies of scale in contracting for services.

PRODUCTS, OPERATIONS & TECHNOLOGY

Homeowner associations (HOAs), which include condominium and co-op associations, provide services to homeowner members and enforce the covenants, conditions, and restrictions that members agree to when they buy a home in a condominium complex or single-family housing development. Restrictions may govern such things as home additions or reconstruction, fencing, landscaping, signs, pet ownership, and commercial use of property. Some associations have restrictions on home rental or resale.

Associations hire contractors to take care of condo roofs and such common areas as roads, land, and recreational facilities; provide security; and landscape and remove snow and trash. These services are often handled by a property management company.

Property owners may face fines or other penalties for breaking HOA rules. HOAs in some states ...