Homeowners' Associations in the US
The Homeowners' Associations industry comprises housing management organizations that deliver governance services, community services and business services to their residents. This industry includes homeowners' associations, condominium associations, cooperatives and other planned communities. The industry has benefited from growth in per capita disposable income and membership, despite a slight decline in the homeownership rate during the five-year period. The vast majority of industry enterprises are structured as nonprofit organizations and, therefore, reinvest any earned profit back into the community. Moreover, industry organizations typically only generate enough revenue to cover required maintenance, any community programs and funding allocated to reserves. Over the five years to 2023, the industry will be positively affected by an increase in the homeownership rate, with a portion of new homeowners anticipated to be part of homeowners' associations. Overall, community associations are anticipated to gain members as an increasing number of people consider homeowners' associations as efficient providers of community services and a way to foster a close sense of community.
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 enables the developer to end its 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.