Rising HOA fees reshape Naples homebuying decisions

Rising homeowners association fees are in the crosshairs of buyers and Realtors across Collier County. Florida and Southwest Florida, in particular, have been singled out with some of the highest HOA fees in the country. Although HOAs are a fact of life here, they’re often a surprise for out-of-state buyers unfamiliar with them, their restrictions and costs. 

“Most of my buyers from the Midwest — Ohio, Chicago, Indiana, Wisconsin and Minnesota — don’t understand HOAs at all,” said Suzanne Powers, broker owner of Powers Realty Group. “People need to grasp what the HOA fees and property taxes are before buying a property. It can be a number that turns buyers away.” 

Associations operate as private self-governing entities overseeing community standards and maintaining properties within subdivisions, condominiums and master-planned communities. Depending on the scale of the neighborhood and its shared features, local monthly fees can range from $200 to $2,000 to cover baseline upkeep — such as landscaping, security and aging infrastructure — alongside luxury amenities including tennis and pickleball courts, fitness centers, beach clubs and golf courses. They generally include cable TV and Wi-Fi. 

Higher HOA fees are typical for communities closer to the beach and those with golf, said Mike Downer, a broker associate with Downing-Frye Realty. “You can expect white-glove service.” 

In Naples-Marco Island, the median monthly HOA fee is $711, accounting for 20.3% of a typical mortgage payment, according to Realtor.com. 

Florida residents pay nearly $20.5 billion a year to maintain their communities — an expense that would otherwise fall to local governments, according to the Foundation for Community Association Research, a nonprofit organization that researches and analyzes community association trends, issues and operations. It estimates that 9.5 million Floridians live in more than 50,100 community associations. 

“Most buyers are familiar with the idea of a homeowners association, but don’t know what it includes,” said Downer, who frequently witnesses the Zillow love story playing on repeat: A buyer will spot a home online that matches their budget and ideal location, unaware of the additional financial obligations tied to the community. “They don’t know the community may require a $150,000 initiation fee, HOA fees or an additional $1,000 a month for meals at the clubhouse. These are things they’re not thinking about.” 

These overlooked expenses can easily derail an otherwise successful home search. Downer said local HOA fees have risen about 8% year-over-year since the coronavirus pandemic, in part due to new Florida laws and higher insurance premiums. “The cost of everything is going up, even for smaller communities,” he said. “When the price of gas goes up a dollar, the landscaper still has to buy gas.” 

Downer expects HOA fees to continue rising. 

As a Realtor specializing in beachfront properties, Michael McCumber with Waterfront Realty Group doesn’t deal with associations. Waterfront neighborhoods such as Port Royal and Aqualane Shores don’t have HOAs, although they may have voluntary associations for neighborhood events and get-togethers, he said. 

Powers, who splits her time between Milwaukee and Southwest Florida, said she doesn’t mind paying HOA fees to the master and individual neighborhood associations in Fiddler’s Creek, her Naples home. The fees are less than what she spends to maintain her Wisconsin residence, including property taxes, landscaping and snow-plowing, the latter of which costs $1,100 a month. 

“With HOA communities, you get all types of amenities — gorgeous clubhouses, restaurants, hot tubs, pools and workout facilities, depending on the individual HOA,” Powers said. “Someone else is managing the property, taking care of the lawn, and security officers know who’s in the community. I feel safer in Naples. I pay for that, I appreciate that and I like that. In my opinion, the benefits outweigh the cost. I think it’s worth the money and helps to maintain property values.” 

The majority of HOAs also require a one-time capital acquisition assessment fee, also called an initiation fee or buy-in fee. Powers paid $15,000 five years ago; the rate is now double. 

Under Florida law, HOAs are required to disclose rules, regulations and annual budgets to potential homebuyers within seven days of a signed contract. Usually spanning 60 pages or more, the documents cover everything from restrictions on motorcycles, breeds and sizes of dogs to architectural review and rental policies. 

“There are HOAs here that will weigh your dog,” Downer said. “Buyers almost never review the HOA documents. It’s a huge problem. Most of the miscommunication between an HOA and new residents is from people who don’t read the rules.” 

He suggests potential buyers scan the documents into ChatGPT and ask questions. They should also expand their due diligence by reviewing HOA board minutes, which may contain discussions about costly future repairs or expenses.  

Most homeowners within an HOA agree with Powers. The Foundation for Community Association Research reports that 63% of Floridians say their association’s rules protect and enhance property values, while 86% rate their community association experience as positive or neutral. The organization’s data also estimates the nation’s HOAs will grow by as much as 4,000 to 377,000 in 2026. 

“Naples has tons of areas without HOAs, but people need to know what they’re getting into,” Downer said. “They can buy a $1 million home in Golden Gate Estates and have a shack next to them.”