What the Rise of HOAs Means for Homeowners Deciding to Build or Remodel

By Tino Soto, President – Frontline Construction Group, LLC

Homeowner’s associations (HOAs) have long played a role in shaping residential communities. They can help protect property values, promote community standards, and maintain shared spaces. At the same time, HOA rules, fees, and design restrictions can influence how attractive they are to today’s homeowners.

Recent housing data shows that HOAs remain a dominant factor in new home construction—and that reality has important implications for homeowners deciding whether to build new or invest in remodeling their existing home.

HOA Trends: What the Data Tells Us

From 2009 through 2020, the share of new single-family homes built within HOAs steadily increased, peaking in 2020 when 67.1% of new homes were constructed within an association. During the COVID-19 pandemic, that trend briefly reversed, dropping to 62.6% in 2022.

However, the most recent data shows that HOAs are once again on the rise.

In 2024, 65.7% of new single-family homes—a total of 651,873 homes—were built within a community or homeowner’s association. This represents the second-highest percentage ever recorded in the survey’s history.

Where HOAs Are Most Common

HOAs are especially prevalent in certain regions of the country. In 2024:

• Mountain Division led the nation, with 81.6% of new homes built within HOAs

• South Atlantic: 73.9%

• West South Central: 70.1%

• Pacific: 58%

• West North Central: 53.3%

Meanwhile, the Middle Atlantic (32.5%) and New England (34.1%) regions had the lowest concentrations of HOA-built homes.

What Buyers Actually Care About

While HOAs remain common, buyer preferences tell an important story.

According to the NAHB study What Home Buyers Really Want, buyers place greater value on lifestyle and location than on whether a home is governed by an HOA.

• 65% of buyers prioritize proximity to retail, parks, and walking or jogging trails

• Only 39% say a homeowner’s association significantly influences their decision

This gap highlights a critical insight: buyers want homes that fit their lifestyle, not just their neighborhood rules.

What This Means for Homeowners: Build New or Remodel?

At Frontline Construction Group, we regularly help homeowners weigh this exact decision.

For those considering new construction:HOAs can offer structure and predictability, but they often come with strict architectural guidelines, limited customization options, and long approval processes. While new HOA communities may check the box for location and amenities, homeowners sometimes find themselves compromising on design, layout, or long-term flexibility.

For those considering remodeling:Remodeling an existing home—especially in a well-located neighborhood—can be a powerful alternative. It allows homeowners to:

• Customize their space to match their lifestyle

• Preserve location advantages buyers value most

• Avoid HOA limitations tied to new construction

• Increase property value without relocating

In many cases, remodeling enables homeowners to create a home that competes directly with new builds—without the constraints that often come with HOA-controlled developments.

Our Perspective at Frontline Construction Group

As a residential construction general contractor, our role is not to push one path over another, but to help clients make informed, strategic decisions.

Understanding HOA trends helps homeowners see the bigger picture: where the market is going, what buyers value, and how their investment will perform over time.

Whether you’re exploring a ground-up build or considering transforming the home you already love, the right construction partner can help you align your vision with market realities.

At Frontline Construction Group, we believe your home should work for your life—not the other way around.