Are HOAs Beneficial to Society? You will be shocked at the answer…

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Most individuals don’t question how HOAs were first started. They live in a HOA and pay their dues and follow the rules and that is the most they know about their HOAs. What most people don’t realize is that this concept has been studied and researched and talked about in urban planning for about two decades. 


In 2019, Wyatt Clarke and Matthew Freedman conducted a study never before done on HOAs and published their findings in the Journal of Urban Economics. I won’t bore you with the technical stuff, but you should read the article if you are interested (it cost money but I think it was worth it). *Citation below. The authors used a hedonic progression model to test the data. I went to law school because I hate math. So, I will leave all the math to the authors. But, what is interesting about the article is that HOAs are somewhat secret and unknown. All documents are filed in the real property records and difficult to compile. The authors used data from Zillow (Zillow Transaction and Assessment Dataset or ZTRAX) to compile their HOA data. The database does not list the specific HOAs. The authors used mortgage riders as a way to not only look at how many HOAs exist but who lives in HOAs, the cost of the houses and diversity of communities that have HOAs, etc. etc. This type of data has never before been compiled. In Texas, we could look at TREC’s management certificate database but I don’t think it would give us the plethora of data tested for the article I am referencing.


What did the research conclude? HOAs are actually a valuable tool in substituting for local government. Houses in a HOA sell at a premium, usually 4% higher than equivalent non HOA homes. These conclusions also were determined based on location as well. The Southern Core Based Statistical Areas (CBSAs) benefitted generally more than others. But, overall for every $1 spent on HOAs dues, members benefitted $1.19. That is very interesting and surprising based on all the articles I read stating that homeowners hate their HOA. 


The authors stated that more research needs to be conducted and that diversity and segregation need to be considered where those issues arise in HOAs. I agree. Texas local and state government can benefit from the research on HOAs and frame policies and laws that work with HOAs. 


*Wyatt Clarke, Matthew Freedman

The rise and effects of homeowners associations

IBM, US, University of California, Irvine

Journal of Urban Economics 112 (2019) 1-15

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By Admin December 1, 2025
It is time to put up holiday decorations!! I love this time of year! The week of Christmas, my family and I go out and look at all of the holiday decorations and lights. But, what about the HOA? Some HOAs, that have the budget for decorations, might put up lights and bows in the HOA common area. Most HOAs hire someone to put and take down décor. I am sure a lot of people wish they could hire someone for their own personal decorations. No one wants to get that dreaded letter from the HOA stating that they need to take down decorations. No HOA wants to be considered a scrooge at the holidays either. I read an article from 2019 where a Texas HOA asked a couple to take down their holiday decorations because they were installed too early. The mother was pregnant with their third child and they needed to put the decorations up early because she was due to have her baby a month later. Oops! I think that whole situation could have been avoided if both parties communicated with each other. Here are some tips regarding how to avoid those uncomfortable situations. Draft guidelines if the declarations allow for it. In those guidelines, the HOA can set a timeline for when decorations can be put up and when they need to be taken down (be reasonable!). The guidelines can also address any nuisance concerns (such as lights and other noisy or distracting decorations that can cause issues). Don’t limit the types of decorations or the subject matter. Limiting some colors or certain types of decorations used in specific religions or cultures can actually open the Association to liability. Using specific identifying words in any guidelines can alienate homeowners. The Association should air on the side of caution when prohibiting decorations and the wording should be broad enough to include everyone. Lastly, communicate with each other! If there are decorations that are causing issues, talk to neighbors about it. If you want to install decorations before the guideline dates, call the HOA or management company. Give them the reason why early installation is needed. The point is to be inclusive and keep the Association safe and happy. I hope everyone is safe and happy during the holidays! 
By Admin December 1, 2025