HOA dues eat into homeownership costs in Michigan
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The gated Town Square Cooperative in Detroit's Elmwood Park has a Zillow listing for $185,000 with an HOA fee of $830. Photo: Annalise Frank/Axios
Nearly 1 in 5 Michigan homeowners paid condo or homeowners association fees last year, and their median monthly bill was $125, new Census Bureau data shows.
Why it matters: Expensive condo or HOA dues add to the already high cost of homeownership.
- The dues pay for maintenance work such as mowing and snow removal, amenities like pools and gyms, and other costs that keep a community running.
The big picture: Nationwide, HOAs (think: planned and gated communities) are more common than condos and their fees are typically lower, per the Census Bureau.
- These estimates were the first to include information on HOA fees, too.
Yes, but: At least we're not New York, with a median monthly fee of $739.
Plus, Arizona, Florida and Nevada — home to many retirees living in planned communities — saw the largest shares of households paying condo or HOA fees.
What they're saying: HOAs factor into mortgage qualifications for buying condos, Robert Scalici, a Re/Max first associate broker based in Shelby Township, tells Axios.
- "If you buy a house, you're going to qualify for much more of a mortgage than you will for a similarly priced condo, because that association fee eats into your buying power," he says.
- It's a big consideration, he adds. But condos are still preferable for those who want maintenance taken care of, or want to live in a location where condos are prevalent.
Context: When Scalici got into the real estate business decades ago, condos weren't seen as much of an appreciating asset. But now they've become increasingly popular, especially with single or traveling lifestyles.
- He advises condo owners to join their boards of directors so they can stay apprised of how money is being spent.
Zoom in: Detroit condo listings' median monthly HOA fee was $350 as of April, the Free Press reported, citing Redfin data — though some luxury spots had fees over $1,000.
Friction point: Such associations often enforce strict rules on everything from holiday decor to lawn care, with fines for residents who fail to comply. And the dues are climbing.
- Scalici says he used to see condo fees under $100 a month, but now when he sees $400, he considers it to be on the low end.
The bottom line: The fees vary widely between communities — nationwide, roughly 5.6 million homeowners paid less than $50 a month, while around 3 million paid over $500 a month, per the Census Bureau.