While experts predict a major slowdown for the U.S. housing market in 2023, the number of new condominium communities and homeowners associations is expected to increase by 5,000 this year, according to projections by the Foundation for Community Association Research, an affiliate organization of Community Associations Institute (CAI).
Community associations, also known as homeowners associations, condominiums, and housing cooperatives, are home to 74.2 million Americans and represent 29% of the U.S. housing stock, according to the Foundation's 2021-2022 U.S. National and State Statistical Review for Community Association Data. A full scope of the latest industry data and statistics will be released in July 2023. The Foundation estimates the number of U.S. community associations will grow from 358,000 to as many as 363,000.
“While we're optimistic about the continued growth of community associations, we also are closely monitoring a decline in U.S. home prices and an increase in mortgage rates that is cooling the housing market," says Dawn M. Bauman, CAE, executive director of the Foundation and CAI's senior vice president of government and public affairs.
Bauman adds, “The demand for housing continues to outpace the number of sellers in many states, such as Florida and Texas, where increased mortgage rates are impacting housing affordability. Another real concern is how labor and supply chain issues remain a real problem for homebuilders. We're hearing many builders say they are using the market slowdown as a time to catch up."
Since the 1970s, community associations have been a popular housing choice for people around the world—especially for condominium buyers seeking proximity to city centers, public transportation, and schools. Planned communities also give local municipalities the ability to transfer the obligation of providing services such as trash and recycling pickup, snow removal, sidewalk and street maintenance and lighting, stormwater management, and more to homeowners.
The 2022 Homeowner Satisfaction Survey, a biennial, nationwide report conducted by Zogby Analytics on behalf of the Foundation, provides a better understanding of condominium and homeowners associations. Homeowners say the following about their community association living experience:
-
89% rate their overall experience as very good or good (66%) or neutral (23%).
-
87% say members of their elected governing board “absolutely" or “for the most part" serve in the best interests of their community.
-
76% say their community manager provides value and support to residents and their association.
-
89% say their association's rules protect and enhance property values (68%) or have a neutral effect (21%); only 7% say the rules harm property values.