How An HOA Can Impact Home Values

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How An HOA Can Impact Home Values

Home values vary depending on several factors, from the home’s condition to the look of the lawn and even the appearance of surrounding homes. A homeowner’s association is an organization based in a community that works to preserve the value of properties in the neighborhood. They also work to improve the value of properties by creating and enforcing rules for residents to follow regarding their home and property. Rules vary from HOA to HOA, but most are focused on cleanliness and cohesion among all the homes in the neighborhood. Many people seem to have a negative outlook on HOAs since they have rules regarding property that doesn’t even belong to them, but here’s how an HOA can impact home value in a neighborhood.


We’ve all been through a neighborhood where there was one home that stuck out among the others. Whether it was the unkempt lawn, or a home painted a wild color, that one home could have a negative impact on the value of surrounding homes, even if they were kept tidy. Most, if not all HOAs have rules regarding lawn upkeep. This means yards must remain mowed, trimmed, and free of garbage and clutter. They also often have rules regarding what colors your home can be, so you won’t have a neighbor with a bright pink home affecting the value of your home. One home painted wild colors or a yard that’s not mowed and tidy can bring down property values for many surrounding neighbors. By enforcing rules that limit the colors a home can be and how a yard should look, your home won’t be negatively impacted by one person.


When comparing homes in a neighborhood with an HOA to similar homes in areas without an HOA, you’ll notice an increase in price. Homes in communities with a homeowner’s association are typically listed and sell for 5-6% more than their counterpart homes in areas without an HOA.

Buyer Values

Nobody wants to live in a neighborhood where neighbors let their yard grow wildly or allow their fallen branches to fall and stay in the yards of neighbors. Serious buyers tend to value homes based in communities with a homeowner’s association more than those without one since there are rules that will not only protect them and their home, but the value of their home as well.


By having rules regarding permissible looks for homes, an HOA creates cohesion among neighboring houses. This creates a neighborhood that looks well put together, neat, and inviting. Being based in a nice-looking neighborhood has its perks, since the value of your home is impacted by all of the surrounding homes as well. Uniformity creates cohesion among neighboring homes which can also impact home values.

While some people may not approve of homeowner’s associations, they are beneficial for residents in the neighborhood the HOA covers. One of the main ways how an HOA can impact home value is by making and enforcing rules. The rules an HOA makes ensures that all homes are clean, and yards are trimmed and free of garbage and clutter. This is important since having neighbors with unkempt, untidy yards can negatively impact your home’s value. An HOA works to protect the value of all homes in the area and ensure all homes work together well.