Are HOAs Going Away? Is It Happening and What Happens Next?
You’ve probably seen the headlines or heard neighbors talking: Are HOAs going away? With lawsuits, rising fees, and frustrated homeowners, many are asking if this system is collapsing. Let’s talk about what’s really happening and what could come next.
Insight #1: HOAs Aren’t Going Away Overnight
You might hear whispers that HOAs are disappearing and that people are pushing back or that someday we’ll live in totally free-for-all neighborhoods and there are some valid concerns.
HOA-governed communities are deeply entrenched and expanding. Today, about 75 million Americans live in an HOA or community-association that’s nearly 30% of the U.S. population. And when you look at new construction, 60% of single-family homes are now built under HOA or common-interest communities nationally.
In Nevada, nearly 50 % of homeowners live in an HOA community! In the Las Vegas market, it’s extremely hard to find newer homes that aren’t under some form of HOA. Almost every new home community built here in the last 10 years has HOAs. There are a handful of newer communities without an HOA here, but it is rare!
When a developer records the Declaration of Covenants, Conditions, and Restrictions (CC&Rs) at the county level, those rules become part of your deed. In Nevada, the HOA is a primary lien meaning they can foreclose on homeowners if they are not paying the HOA dues. During the market slowdown in 2008, there were a lot of HOA’s foreclosing on homeowners, I know of several that foreclosed even when there wasn’t a mortgage on the home.
Insight #2: Why People Think HOAs Might Disappear
Rising HOA Fees. Some associations are increasing dues just to keep pace with inflation, rising insurance costs and maintenance items. Many of the homeowners have been hit with surprise fines or special assessments. One community, Rock Springs Vista, had its monthly HOA jump from $250 to $416 in just one year. In Las Vegas we’ve seen HOAs push through substantial fee increases or add huge assessments for homeowners to pay. In 2021, the Nevada Legislature passed Assembly Bill 356 which requires the HOA’s to remove all nonfunctional turf by December 31, 2026. This means any decorative grass that doesn’t serve a recreational purpose in the common areas of the community must be removed by that date. Many HOAs now have to budget for this turf conversation and isn’t just cosmetic work, it involves removing grass, installing drip irrigation, regrading, planting desert friendly greenery, and ensuring 50 % living plant coverage at maturity.
My HOA, Anthem Country Club has been working hard to make sure they comply with this requirement while keeping the beautiful feel of our community. Many of the HOA’s are dipping into reserves or increasing monthly fee or adding an assessment for this cost.
Rules are getting stricter and more invasive. I just read an article about a homeowner in Georgia that secured a $40,000 settlement after challenging her HOA’s lien for unpaid fines. HOA boards are policing everything from landscaping, paint colors, holiday decorations, flags, or political signs. Some states have begun pushing back. That same article said that Ohio introduced a bill to stop HOAs from banning political yard signs.
Nevada has seen its share of HOA conflicts especially in fast-growing parts of the valley where newer communities were built rapidly. I find that how strict an HOA seems really depends on the individual neighbors. If you have people in the community that are on the board and enforcing every rule, it can be a hassle. I have a client right now who listed her home for sale with me. She loves her house but keeps getting notices from the HOA. She is an older woman in her 80’s. One day she didn’t put her garbage cans back right away. She got a notice from her HOA. Of course, by then the garbage cans had been put away for days. Her neighbor is an older gentleman that just complains to the HOA for everything, and she constantly is getting notices. She just wants out!
I have another client that got a notice from the HOA to paint his fence. He didn’t have time or the money to do so right away, and they were fining him $100 per week.
I always advise clients in Las Vegas to look closely at CC&Rs and HOA financials before buying, the worst surprises often come when cumulative fines or fee increases hit you after the closing. I also tell my clients it is so important to communicate with the HOA. If you get notice, then immediately respond. If you can’t comply right away ask the HOA to give you more time. Communication is the key and keep everything in writing with emails or letters so you have proof that you responded. Don’t just ignore the notices!
Insight #3: What’s Changing in 2025/2026 and Beyond
Some states are passing legislation to help with this. In California, a new law caps HOA fines per violation at $100. Florida passed a law requiring more transparency from HOAs and limits the kinds of fines they can impose.
Many communities are hiring full-service management firms rather than relying on voluntary board members who are also juggling day jobs. Using shared technology, cloud systems, homeowner portals, and automated communication will become standard. For example, platforms that let homeowners view budgets, submit maintenance requests, vote online, or see CC&Rs all in one place.
Communities can’t afford to look overly restrictive in a competitive housing market. So you’ll see Boards audit which rules which feel petty. Some older rules (holiday lights, flag display, small yard modifications) are being relaxed or removed altogether.
Insight #4: What Happens If HOAs Disappear?
Now, imagine a world with no HOAs or at least very few. At first glance, it sounds great. But I expect quite a few headaches. Without an association, you lose the guarantee that the community will be maintained, and neighbors will keep homes nice. Some neighborhoods would rely on the city to step in but city budgets are already strained, and local governments don’t usually micromanage what color your house can be or whether your fence is rotting. I see the communities without HOA’s and those neighborhoods have a completely different feel than the master planned communities.
Over time, that lack of oversight can hurt property values. Buyers may discount homes out of concern that unchecked maintenance or visual decline could spread. So yes, losing HOAs might sound appealing to some, but it also risks your future property values and what appeals to many buyers look for in the first place.
Insight #5: The Most Likely Scenario
HOAs will evolve, not disappear. Why do they persist? Because people still see value Master planned Communities will continue to use HOAs to protect long-term value by maintaining common areas and manage landscaping and overall appeal of the neighborhoods. However, expect more transparency, digital management, and homeowner rights protections.
If you’re in or moving into an HOA community, understanding how they work what authority they have, how rules are enforced, and what protections homeowners have gives you a huge advantage.
So, are HOAs going away? The short answer is no but they are changing. Expect new laws, new management styles, and hopefully, a better balance between rules and homeowner freedom.
