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December 2018

Most new homes are built within some form of HOA

Six of every 10 homes built in 2017 were part of a community or homeowner's association, according to Census Bureau data. That's up more than 25 percent since 2009 when around 47 percent of newly built homes were within an HOA.

An analysis of the Census Bureau's Survey of Construction by the National Association of Home Builders shows more than half of all homes built since 2011 are part of a formal homeowner association. Except for 2014 when there was a slight decline, there has been a steady increase in the percent of home homes built in HOAs each year since 2009 when data were first collected.

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."

A comparison of the nine census divisions revealed the highest share, at 78.8 percent, was in the Mountain Division covering the states of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming.

Division 9, encompassing Alaska, California, Hawaii, Oregon, and Washington, reported 54 percent of new homes in such communities, enough to land in fourth place behind the South Atlantic Division and the West South Central Division.

The New England Division had the fewest homes being built as part of an HOA with only 22.2 percent.

More than 21 percent of the U.S. population in 2016 lived in common-interest communities, with homeowner associations accounting for around 55 percent of them, according to the National and State Statistical Review for that year. The Community Associations Institute, an international membership organization, estimates there are more than 351,000 HOAs in the U.S.