NAHB tabulations of data from the Census Bureau’s Survey of Construction (SOC) show 59 percent of new homes started in 2015 were built within a community with a homeowner’s or community association. The Census Bureau defines a community or homeowner’s association as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.”
When analyzed by intended use, 72 percent of new homes “built for sale or sold” in 2015 were in a community association, up from 63 percent in 2010. Among “contractor-built” homes (built on owner’s lot with owner hiring a builder or a general contractor), 23 percent were within a community or homeowner’s association (up from 21 percent in 2010), and only 12 percent of “owner-built” homes (owner acts as the general contractor) were within a community association, essentially unchanged from the 13 percent reported in 2010.
Another source of information on this topic is NAHB’s recent survey on the Typical American Subdivisions. One of the questions asks whether there is a HOA, condo, or other type of community association for the development. Results show that 80 percent of the subdivisions have one of these association types.