Homeowners' Associations in the US
During the recession, the Homeowners' Associations industry experienced declines due to a decrease in housing starts and an increase in vacant homes. The main source of revenue for the industry is assessment fees that homeowners pay monthly to their respective associations. Yet during the recession, high unemployment and foreclosure rates severely hampered industry revenue. However, as the economy gains steam and per capita disposable income rises, these associations will see an increase in paid assessment fees, thus bringing the industry out of decline. Aging baby boomers will also propel industry growth, as they often join community associations.
A homeowners’ association is a legal entity created by a real estate developer for the purpose of developing, managing, selling or administering a community of homes. It is given the authority to enforce the community’s covenants, conditions and restrictions, and to manage its common amenities. It allows the developer to end his responsibility, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.