Post by Admin on Jun 19, 2019 9:15:34 GMT -5
Finally, a scientific methodological approach to reality-testing the "common belief" that HOA's protect home values! Up to this time, Developers and industry stakeholders such as CAI, have proclaimed to housing consumers that HOA's are desirable places to live and your home value is protected.
Consumers aren't buying the line anymore, and the science supports the fact that HOA's not only do not protect home values, but for a large segment of markets in sample states ie Florida, Arizona and Missouri, buyers are avoiding them, according to the Yale research professor! This is the first research that I am aware of that was conducted independently using public numerical data of a size sufficient to posit a credible statement on this subject!
"Unlike previous research, which analyzed home sale prices of HOA vs. non-HOA homes, this study examined the percent change in a home’s value over time. It then compared appreciation rates of properties in HOA and non-HOA communities."
Thus, it was discovered that "...properties in HOA-governed communities have a lower return on investment than homes outside the boundaries of HOAs."
The Yale researcher offered some possible reasons for the result:
1.Home buyers cannot or do not want to pay HOA fees. (Think of how much more "house" that extra $175/mo will buy)
2. HOAs have a negative stigma, due to greater public awareness of frequent HOA disputes. (And those disputes cost EVERYONE in the community--over a long term. And can cause you to lose your home to an abusive and punitive HOA)
3. Consumers who value their rights tend to avoid HOAs. (HOA's increasingly act like quasi-governments and are intrusive/abusive with consumers' civil and property rights).
2. HOAs have a negative stigma, due to greater public awareness of frequent HOA disputes. (And those disputes cost EVERYONE in the community--over a long term. And can cause you to lose your home to an abusive and punitive HOA)
3. Consumers who value their rights tend to avoid HOAs. (HOA's increasingly act like quasi-governments and are intrusive/abusive with consumers' civil and property rights).