A homeowner’s association (HOA) is an organization in a subdivision, planned community, or condominium building that makes and enforces rules for the property owners. HOAs are run by a board of directors and typically collect fees to pay for a wide range of services, including common area maintenance and upkeep of facilities. The cost of these services is going up, as are HOA fees.
Shelter costs are going up for most residents, regardless of the type of property. On February 5, 2025, Sigma posted a blog, “Can You Afford a Large Increase in the Value of Your Home“, that addressed some of the increases facing residential occupants.
Individuals and investors should recognize the risks involved when your income does not keep pace with these cost increases. Portfolio strategies that seek to maximize current income may prove to have been short-sighted over time. Investors might want to look to their advisor(s) to find an appropriate balance between protecting principle and maintaining purchasing power.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA
