The U.S. housing market is a dynamic entity, constantly evolving and adapting to the changing needs of homeowners. One segment that has seen consistent growth over the years is the community association housing market. This growth presents a unique opportunity for commercial property managers and enterprising entrepreneurs.
The Growth of Community Associations
Community associations, also known as homeowners associations, condo associations, and housing cooperatives, are home to 75.5 million Americans and represent 30-33% of the U.S. housing inventory. The number of new condominium communities and homeowners associations is expected to increase by 3,000-4,000 in 2024. The Foundation for Community Association Research estimates the number of U.S. community associations will grow from 365,000 to as many as 370,000.
This consistent growth in community associations is not a random occurrence but a result of several factors. The increasing urbanization and the need for more affordable housing solutions have contributed significantly to this trend. Moreover, the desire for community living, where residents can enjoy shared amenities and services, has also fueled the growth of these associations.
The Appeal of Community Associations
Community associations have been a popular housing choice since the 1970s, especially for condominium buyers seeking proximity to city centers, public transportation, and schools. Planned communities also give local municipalities the ability to transfer the obligation of providing services such as trash and recycling pickup, snow removal, sidewalk and street maintenance and lighting, stormwater management, and more to homeowners.
These associations offer a sense of community and shared responsibility, which many homeowners find appealing. They also provide a structured environment where rules and regulations help maintain property values and ensure a harmonious living environment.
Homeowner Satisfaction
The 2022 Homeowner Satisfaction Survey provides a better understanding of condominium and homeowners associations. Homeowners say the following about their community association living experience:
- 89% rate their overall experience as very good or good (66%) or neutral (23%).
- 87% say members of their elected governing board “absolutely” or “for the most part” serve in the best interests of their community.
- 76% say their community manager provides value and support to residents and their association.
These statistics indicate a high level of satisfaction among community association residents, further emphasizing the appeal of this housing option.
Opportunities for Commercial Property Managers and Entrepreneurs
The growth and popularity of community associations present a wealth of opportunities for commercial property managers and entrepreneurs. Here are some ways they can leverage this trend:
Property Management Services: With the increase in community associations, there’s a growing need for professional property management services. Property managers can offer a range of services, from maintenance and repairs to financial management and administrative support. They can also provide strategic guidance to help associations operate more efficiently and effectively.
Entrepreneurial Ventures: Entrepreneurs can explore opportunities in providing essential services to these communities. This could include landscaping, security, waste management, pet waste stations, and other home-related services. The demand for these services is likely to increase as the number of community associations grows.
Real Estate Investments: The steady growth of community associations makes them an attractive investment opportunity. Investors can consider purchasing properties within these associations and benefit from the high demand and stable market. They can also explore the possibility of developing new community associations, given the increasing demand for this type of housing.
Consulting Services: As community associations continue to grow, they’ll need expert advice on various issues, from legal and financial matters to community planning and dispute resolution. This opens up opportunities for consultants specializing in these areas.
Technology Solutions: The management of community associations involves various tasks, from communication and document management to financial tracking and reporting. Entrepreneurs can develop technology solutions to streamline these processes and improve the efficiency of community association management.
In conclusion, the rise of community associations in the U.S. housing market presents a golden opportunity for commercial property managers and entrepreneurs. By understanding the needs of these communities and offering tailored services, they can tap into this growing market and contribute to its continued success. The future of the U.S. housing market is likely to see more community associations, and those who position themselves to serve these communities stand to benefit financially. This is not just a trend, but a fundamental shift in the housing market that offers numerous opportunities. It’s an exciting time to consider the many benefits of joining the Pet Butler franchise organization to provide these valued services.
