Housing Experts Project Another Year of Growth for Condos and HOAs

By Dawn Bauman
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Community associations will remain a top choice for homebuyers in the coming year as the U.S. housing market is expected to see improvements in inventory, home sales, and prices coupled with more stable mortgage rates.

Projections from the Foundation for Community Association Research, an affiliate of Community Associations Institute, estimate 3,000 to 4,000 new condominium communities and homeowners associations will be built in 2025. Community associations — including homeowners associations, condominiums, and housing cooperatives — currently house 77.1 million Americans and comprise 30% to 33% of the U.S. housing stock. 

The Foundation’s U.S. National and State Statistical Review projects the total number of U.S. community associations will grow from 369,000 to as many as 373,000 by the end of 2025. 

Several trends are likely to shape the 2025 housing market: 

  • Rising inventory: Housing inventory is projected to increase by 11.7%, driven by new construction and more homeowners listing their properties, according to Rate.com. 
  • Moderate price increases: Home prices are expected to rise modestly, with annual increases likely around 2%, according to the National Association of Realtors. 
  • Stable mortgage rates: Mortgage rates could stabilize and even decline to 6%, reports NAR.
  • Increased housing: NAR also projects that construction will approach the historical average of 1.5 million units annually, though inventory levels will still fall short of pre-pandemic norms. 

As community associations continue to be developed, data from the 2024 Homeowner Satisfaction Survey, conducted by Zogby Analytics for the Foundation, highlights homeowners’ positive experiences in homeowners associations, condominiums, and housing cooperatives: 

  • Overall experience: 86% rate their experience as very good or good (60%) or neutral (26%). 
  • Governance: 82% believe their elected governing board serves the community’s best interests. 
  • Management support: 72% say their community manager provides valuable support. 
  • Property value protection: 87% say their association’s rules protect or enhance property values (63%) or have a neutral effect (25%), with only 7% saying rules harm property values. 

For more community association statistics, visit the Foundation’s Community Association Fact Book.

View more data from the 2024 Homeowner Satisfaction Survey.

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Dawn Bauman

Dawn Bauman, Chief Strategy Officer. As CAI’s lead advocate for federal and state legislative and regulatory affairs, Dawn works with volunteer leaders throughout the country serving on CAI legislative action and government affairs committees to advocate for strong and sensible public policy for America’s community associations.