Falls Church, Va., Nov. 01, 2022 (GLOBE NEWSWIRE) — Condominium communities and homeowners associations continue to be a popular form of housing for many Americans, according to a new report released by the Community Associations Research Foundation. The 2021-2022 US National and State Statistical Review for Community Association Data shows that 74.2 million Americans, or about 28% of the US population, now live in a homeowner’s association, condominium community, or housing cooperative, collectively referred to as community associations or planned communities.
There are approximately 358,000 community associations in the United States in 2021, according to Foundation estimates. Homeowner associations represent 58-63% of the total, followed by condominiums with 35-40% and cooperatives with 2-4%. Estimates show that the value of homes in community associations is nearly $11 trillion.
Following the June 24, 2021 partial collapse of the Champlain Towers South condominium in Surfside, Florida, industry experts say a new focus on healthy reserve funds is essential for community associations. The new report shows that approximately $26.6 billion in appraisals are paid into the association’s reserve funds for the repair, replacement and improvement of common property, for example, replacing roofs, resurfacing of streets, the repair of swimming pools and elevators, compliance with new environmental standards and the implementation of new energy saving functions.
For more than 40 years, the Foundation has published the US National and State Statistical Review for Community Association Data as a member of Community Associations Information Booklet. The report is the only one of its kind to use data from the American Community Survey and the American Housing Survey to better align research on community associations at the state level.
According to the report, California leads the nation with 50.10 associations, home to 14.3 million people. Florida comes in second with 49,420, followed by Texas (21,680), Illinois (19,010), North Carolina (14,440) and New York (14,170). Last year, there were about 355,000 community associations in the United States, and the Foundation estimates that number in 2022 will increase to 359,000-363,000.
Community associations have been growing steadily and successfully for decades. The overwhelming majority (89%) of condominium association owners and residents rate their overall experience of living in a community association as “very good” (38%), “good” (28%) or “neutral” (23 %), according to the 2022 Owner Satisfaction Survey, also conducted by the Foundation.
Since its creation, the Foundation Statistical review was sourced from community association stakeholders such as landlords, board members and management professionals as well as lawyers, accountants, developers, mortgage lenders, federal agencies and government officials – all who work with the Foundation and the Community Associations Institute (CAI) to build better communities.
The report details the main reasons for the growth of community associations:
▪ The value of collective management. Americans have largely accepted the collective management structure of community association life, where association boards are made up of democratically elected owners who voluntarily serve their communities. Research shows that there are 2.5 million community association board and committee members in the United States who volunteer 98.5 million hours a year.
▪ Privatization of public functions. With many local municipalities facing fiscal challenges, communities are often developed with the stipulation that the builder creates an association that will take on many responsibilities that have traditionally belonged to local and state governments (e.g. road maintenance, snow and trash removal and stormwater management). According to the report, 78% of new homes built for sale are in a community association, with owners paying $106.4 billion in appraisals to fund essential maintenance.
▪ Develop affordable housing. There has been a constant effort to increase the percentage of homeownership in the United States, and since the 1960s, condominiums have served as lower-cost entry housing, especially for first-time home buyers. Condominium communities represent 35-40% of the total reported community associations.
To view the full report, go to foundation.caionline.org.
The information in the Community Association Fact Book was developed with significant assistance from Clifford J. Treese, CIRMS. Treese is a past president of CAI and the Foundation.
About the Institute of Community Associations
Since 1973, Institute of Community Associations (CAI) has been the leading provider of resources and information for homeowners, volunteer board leaders, professional managers and business professionals in more than 358,000 homeowner associations, condominiums and housing co-ops in the United States and in millions of communities around the world. With more than 43,000 members, CAI works in partnership with 36 legislative action committees and 64 affiliate chapters in the United States, Canada, South Africa and the United Arab Emirates, as well as with housing leaders in several other countries, including Australia, Spain and the United Kingdom. A global 501(c)(6) nonprofit organization, CAI is the leading authority on community association management, governance, education, and advocacy. Our mission is to inspire professionalism, effective leadership and responsible citizenship, ideals reflected in community associations that are favorite places to call home. Visit us at www.caionline.org and follow us on Twitter @CAIAdvocacy.
About the Community Associations Research Foundation
Our mission, with your support, is to provide research-based information to property owners, community association board members, community managers, developers and other stakeholders. Since the Foundation’s inception in 1975, we have built a strong reputation for producing accurate, insightful and timely information, and we continue to build on that legacy. Visit foundation.caionline.org.