2021 will see an increase of 4,500 new condominiums and homeowners associations—nearly 25% of the U.S. housing stock, according to the Foundation for Community Association Research. Community associations, which are home to more than 73 million Americans, will see a 1.3% increase in new communities this year, a growth that has been consistent since 1970. Following an unprecedented 2020, with a global pandemic shutting down the world and resulting severe economic recession, 2021 has the chance of being a positive year for community associations.
The financial impact of COVID-19, although still uncertain, could be felt long after the pandemic ends. To better understand how COVID-19 is impacting community associations financially, CAI has surveyed our members monthly since March 2020 to establish a benchmark for comparing assessment delinquencies between communities and help CAI quantify the impact and advocate for public policy support accordingly. The results indicate there has been a slight impact of the pandemic on community associations.
According to mortgage data firm Black Knight, 2.15 million mortgages were more than 90-days past due as of December 2020. The U.S. Census Bureau’s Household Pulse Survey data collected from December 9–21 show that 15% of survey respondents with a mortgage had no confidence (6%) or only slight confidence (9%) in the household’s ability to make mortgage payments due in January 2021.
CAI will continue to collect data related to community association assessment delinquencies and advocate for public policy that supports the financial stability of community associations.
Community associations remain popular with homeowners. In a 2020 survey conducted by Zogby Analytics on behalf of the Foundation, residents said the following about their community association experience:
- 89% of residents rate their overall community association experience as “very good” or “good” (70%) or “neutral” (19%).
- 89% say members of their elected governing board “absolutely” or “for the most part” serve the best interests of their communities.
- 74% say their community managers provide value and support to residents and their associations.
- 94% say their association’s rules protect and enhance property values (71%) or have a neutral effect (23%); only 4% say the rules harm property values.
To stay up-to-date on data and statistics visit the Foundation for Community Association Research at www.foundation.caionline.org. Look for updated information and resources related to COVID-19 and community associations at www.caionline.org/coronavirus.