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Serving More Than 25,000 Real Estate Professionals in the

November 2017

Six of every 10 new homes are built in community associations

NAHB logoSince 2011 more than half of all newly-built homes were constructed within a community or homeowner's association. The ratio reached its highest level, at 59.8 percent, in 2016 according to data from the Census Bureau's Survey of Construction.

The share of all new homes built within a community or homeowner's association has climbed from 47.6 percent in 2009.

The Census Bureau defines community or homeowner's associations as "formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory."

Among nine census divisions, the Mountain Division (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) accounted for the highest share, with 82.3 percent of new homes situated in such communities. At the other extreme, with only 29.5 percent of newly-built homes in a community association was the New England Division.

About half (50.2 percent) the new homes within the Pacific Division (Alaska, California, Hawaii, Oregon, and Washington) are within a community or homeowner's association, according to an analysis by the National Association of Home Builders. The remaining divisions reported proportions ranging from 29.8 percent to 68 percent.

NAHB Ccommunity or Homeowner's Associations map

According to the Community Associations Institute, an international membership organization, the number of community associations in the U.S. grew from 10,000 in 1970 to 342,000 in 2016.

CAI's National and State Statistical Review for 2016 found an estimated 69 million Americans -- more than 21 percent of the U.S. population -- lived in common-interest communities. Such communities include homeowners associations, condominium communities and cooperatives.

Florida, California, Texas and Illinois have the most associations. CAI's Statistical Review reported Washington has 10,300 associations encompassing more than 2.1 million residents.