6 HOA Trends For 2024

If you’re connected to the real estate industry in any way, take a minute to catch your breath. The past few years have been absolutely volatile, and it doesn’t look like things are going to slow down in 2024.

The cost of living continues to put pressure on HOAs and the people who belong to these communities. Boards have to make tough financial choices, and several rely on seasoned property managers to help them make the best decisions for their communities.

Mounting issues, including aging infrastructure and rapid legislative changes, are creating new challenges for board members, and as a result, associations may struggle to fill vacancies( can we give board members a break?!).

The best thing HOAs can do is anticipate what might come next and prepare to adapt. While not all changes are entirely positive, here are some trends that U.S. associations can expect to encounter as we move toward the end of 2024.

1. Costlier Expenses, Slower Completion Times

Everything is more expensive today, and HOA budgets must reflect the price increases.
Associations can expect to pay more for several materials and services, including:
 Landscaping costs
 Staff
 Labor costs
 Maintenance and repair costs
 Premiums for insurance
 Projects

Experts suggested that community associations need to be prepared to raise dues by 10% to 15% in 2023 to combat inflation. Unfortunately, that may not have been enough to keep governed communities ahead of ballooning costs. This is especially true for older communities that must plan for costly replacements.

According to a 2023 survey conducted by The Foundation for Community Association Research, 91% of respondents, consisting predominately of board members and community managers, saw unexpected increases in expenses due to rising costs and inflation.

73% of respondents planned to increase assessments to address the additional expenses, 41% will reduce expenses, and 15% will reduce reserve contributions. In addition to paying more, projects and tasks may also take longer to complete.

There are labor shortages in virtually every industry, and businesses are waiting longer for materials due to supply chain issues.

To control costs, HOAs should purchase in bulk where possible. This reduces the price per unit for items like light bulbs and cleaning supplies.

If they have an association manager, they may also discuss vendor contracts and whether it is possible to negotiate lower prices. Sign annual contracts for landscaping, HVAC, elevator, and equipment maintenance to reduce yearly price increases.

The CAI also suggests that HOAs explore loans rather than delay projects since prices are likely to continue going up.

2. Communication and Transparency are Community Pillars

This trend is indisputably positive and it’s here to stay. Boards, owners and staff are all craving more frequent, more efficient communication. Associations are moving away from paper letters and forms since they are slow, easily misplaced, and difficult to update.

Instead, communities are switching to digital communication systems, including email, text messages, websites, and resident portals. The best results are achieved when associations make use of multiple communication channels.

Good communication has multiple positive impacts, which is why it is being prioritized by so many HOAs. Owners tend to be more engaged and invested in their community when they have enough information to understand what’s going on.

They also feel more compelled to be actively involved, and perhaps even run for a seat on the board, if they have a clear picture of how the HOA is performing and what needs improvement.

Boards and property managers find that they can carry out tasks and responsibilities with more confidence and less confusion about who is supposed to do what. And, with clear communication, human errors are reduced. Though no one makes mistakes on purpose, they are still costly.

Mistakes mean having to do work twice, spending more time chasing down answers, or paying more for a big repair because it was not approved in time when it was a small issue.

You cannot have a functional, productive or happy community without effective communication. Digital communication channels will become more ubiquitous, along
with online storage spaces, digital event calendars and digital surveys.

3. Software is Now a Necessity for Communities

Software continues to be an effective tool for HOAs and community managers who want
to simultaneously reduce workloads and costs. In addition to communication challenges, HOA management software addresses accounting, guest management, access control, maintenance and repair management, asset management, amenity bookings, and so much more.

The software even comes with a mobile app for staff and residents, meaning they can work or get updates from anywhere.

Associations can save thousands of dollars each year when they use a management platform since it reduces ink and paper costs, and eliminates the need for staff to enter data manually, recreate email lists, manually update amenity bookings or violations, etc. Owners can do more for themselves, giving staff more time to focus on more complex tasks.

Finally, software creates custom reports that give boards and management insights into operations and issues. They can look at things like incident reports and make plans to help reduce the most common issues, or see how often guest parking is booked and decide if it would be worthwhile to charge a fee for guest spots.

4. Onslaught of New Laws

There have been numerous laws passed in states like Florida, Texas and California, aimed at giving associations more power and freedoms. Of course, not all the laws have proven to be beneficial.

Local and state governments simply don’t have the resources to referee issues which is why they are giving more power to HOAs to enforce violation policies. But at the same time, new rules have been passed to lessen resident complaints. These contradictory measures have created new challenges for some communities since they feel like they have less power to govern.

HB 1203 is a good example. According to this new law, Florida communities will no longer have the power to prohibit homeowners from parking pickup trucks or work trucks in their private driveways.

Some boards feel as though the legal language is too vague, and they are left with a lot of unanswered questions that only an attorney can help them resolve. Other communities worry that this is just the beginning of government overreach into local HOA affairs.

Associations must comply with new laws, even if they don’t entirely agree with them, and are strongly encouraged to seek legal guidance if they are not entirely clear about how to introduce or enforce new laws.

5. Shortage of Qualified Leaders

Good leaders are even harder to find. There is a shortage of experienced board members and community managers, so if you have either or both in your community, be sure to show your appreciation.

The volume of work, training, salary, and availability of opportunities in other associations will draw good managers and staff away from fractured associations. Similarly, board members who feel their efforts are being wasted won’t seek re-election.

If there are constant arguments between board members, finances are disastrous, or if lawsuits are becoming common, few people would willingly take on such challenges.

Board members deserve proper training, modern resources to help them be more efficient, and a supportive team that is willing to prioritize the association’s best interests.

6. Environmental Upgrades

HOAs are becoming more environmentally conscious, and state laws are changing to help owners make green changes more easily. HOAs embrace uniformity; this ensures that property values are relatively similar for each home or unit.

So, when one owner asks to install solar panels on their roof, swap out real grass for artificial turf, or put an EV charger in their driveway, it is understandable why the association might have some hesitations. But, in states where weather is extreme, and water is scarce, the benefits of green upgrades clearly outweigh the concerns.

There are currently state laws governing HOA solar panel installation in Indiana, North Carolina, and California. Similar artificial turf laws exist in Arizona and California. California also forbids covenants that effectively prohibit or unreasonably restrict the
installation or use of an electric vehicle charging station within an owner’s unit or in a designated parking space.

HOAs should be prepared to work with owners and find ways to incorporate environmentally friendly upgrades without drastically interfering with the look and feel of the community.