The number of Americans unable to keep up with homeowners association (HOA) payments has surged over the past three years. HOA fees have steadily increased, heightening the risk of homeowners losing their properties. According to a study by property data platform Cotality, HOA liens rose 41.7% nationally between 2022 and 2025.
Three years ago, there were 177,260 HOA liens across the U.S. Last year, the number climbed to 250,951. Cotality’s Chief Economist, Dr. Selma Hepp, noted that HOA dues can amount to hundreds of dollars a month. Combined with rising insurance and taxes, these dues can strain a household budget.
Homeowners often prioritize mortgage and utility payments to avoid foreclosure and maintain essential services. Thus, HOA fees may be overlooked, remaining unpaid when household budgets are tight.
Understanding HOAs
HOA fees are payments made by homeowners to a homeowners association. This private, legally incorporated organization manages residential communities, including subdivisions or condominium buildings. It collects dues, arranges repairs, maintains amenities, and enforces rules for property upkeep.
Buying a property in a HOA community legally requires paying HOA fees. Typically, these fees range from $200 to $400 monthly.
Non-HOA or HOA-Free Homes
Condos and townhomes more frequently come with HOA fees compared to single-family homes. New construction homes are also more likely to have HOAs than older ones. Recently, homes with HOA fees have become more common in the U.S. housing market.
According to a January report from Realtor.com, nearly 44% of homes for sale in 2026 were subject to a monthly HOA fee, climbing from 34.3% in 2019. During the same period, the median HOA fee rose from $108 in 2019 to $135 in 2026. Meanwhile, homes without HOA fees (‘non-HOA’ or ‘HOA-free’ homes) comprised 43.6% of the market this year, up from 34.3% in 2019.
Consequences of Unpaid HOA Fees
If a homeowner neglects HOA dues, the association can file a lien against the home. This does not immediately lead to losing the property, but it creates significant issues. The debt must be settled before selling or refinancing the home, and interest, late fees, and legal costs may increase the financial burden.
In certain states, an HOA may pursue foreclosure if the debt remains unpaid. Minnesota is particularly challenging for homeowners, as 47.5% of liens convert to foreclosures due to its “aggressive out-of-court process,” as mentioned by Cotality. Nevada follows with a 40% conversion risk.
Research indicates an increase in foreclosure filings linked to unpaid HOA fees between 2022 and 2025, with a few states predominantly contributing to this trend.
States Facing Challenges with HOA Liens and Foreclosures
HOA-led foreclosure filings increased by 46.1% over three years. Five states—Florida, Texas, Nevada, California, and Arizona—accounted for a significant portion (85.2%) of these filings last year.
The involvement of these states is largely due to high costs. Florida homeowners, for instance, face the highest HOA fees relative to home prices. Realtor.com identified metropolitan areas like Miami-Fort Lauderdale-West Palm Beach ($617), Panama City ($532), Naples-Marco Island ($711), Cape Coral-Fort Myers ($475), and Port Lucie ($449) as the priciest.
In these cities, HOA fees represent substantial portions of mortgage payments: 26.9% in Miami-Fort Lauderdale-West Palm Beach, 22.7% in Panama City, 20.3% in Naples-Marco Island, 19.6% in Cape Coral-Fort Myers, and 18.9% in Port Lucie.
Florida’s prevalence of condos and new constructions, along with new building safety rules after the Surfside collapse, has contributed to rising HOA fees. Climate change, bringing more severe natural disasters, has also escalated HOA fees in Florida, Texas, and California.
Cotality reports that homeowner insurance premiums in Florida rose by an average of 60% between 2019 and 2023. Texas premiums increased by 60% in 2024 compared to 2019, while Arizona’s rose by nearly 70% over six years.
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