The American dream is to own a home. However, these days more than a quarter of Americans live in a community association- a housing cooperative, condominium or homeowners association. In Florida, there are 48,250 associations, which is the most in the country. California has the next highest with 48,150, followed by Texas (20,050), Illinois (18,700), North Carolina (14,000) and New York (13,875). The home value of these communities is around $6.28 trillion with about $96 billion in assessments collect annually from the homeowners to fund essential maintenance.
There are numerous reasons for the growth of these community associations. First, there is value to having collective management consisting of democratically elected volunteer homeowners to serve their communities. In the US, there are 2.5 million community association board and committee members.
Also, many local municipalities face fiscal challenges and therefore, communities develop with the stipulation that the association will assume many responsibilities that traditionally belong to local and state government, like road maintenance, snow and trash removal and stormwater management. Most communities have reserve funds for repair, replacement and enhancement of common property, including elevators, swimming pools and streets.
These communities expand affordable housing and increase the percentage of homeowners in the U.S. Since the 1960s, condominiums tend to serve as an affordable option to buy housing, especially for first-time buyers. Condominiums account for about 40% of the total of community associations. In New York City, most buyers tend to buy condominiums because condos are real property and they do not have to submit a comprehensive packet to the co-op board, only to be denied ownership.
All Area Realty Services is New York City’s leading real estate management company specializing in full-service professional property management for cooperative and condominium boards in the Manhattan area.