12d • General discussion
Why Your HOA Fees Keep Climbing: Massachusetts Dues Are Up 26%
A New England Condominium report dropped hard numbers on what every Massachusetts trustee already feels at budget time: association fees have surged roughly 26% since 2019. In fact, in many local communities, owners now pay more in monthly dues, master insurance, and property taxes combined than they do toward their actual mortgage principal and interest.
Industry data points to three main macro-forces driving this relentless spike:
🛡️ The Brutal Insurance Market: Master-policy renewals across the Commonwealth are climbing 8% to 12% annually. Aging New England infrastructure combined with a historically "hard" insurance market are the exact reasons why strict federal deductible caps are being forced onto boards.
🏗️ Compounding Deferred Maintenance: Post-pandemic, the cost of raw materials and specialized labor has climbed steadily year over year. In MA, avoiding capital work doesn't save money—the cost of fixing structural masonry, roofs, and boilers simply compounds over time.
🏦 Aggressive Reserve Mandates: In the wake of recent national structural failures, the secondary mortgage market has cracked down. The massive Fannie Mae and Freddie Mac shift—tightening rules and scaling standard reserve requirements up to 15% of an association's annual budget—is forcing boards to fund reserves far more aggressively.
The Uncomfortable Truth: A massive percentage of recent fee increases is simply "catch-up" math. Communities that artificially suppressed dues, underfunded their reserves, and ignored maintenance for a decade are now forced to pay for it all at once on top of modern market inflation.
📋 THE TRUSTEE TAKEAWAY
Raising fees is the most politically painful thing a board does. However, boards that clearly communicate the why keep owner trust. Boards that just quietly announce a higher number lose it.
Use this data to frame your next budget meeting honestly: "This isn't waste—this is master insurance up 10%, real structural maintenance we cannot legally defer, and federal reserve requirements we are forced to meet."
💬 DISCUSSION QUESTION
When your board last raised monthly fees, did you break down the specific market drivers for your owners, or did you just announce the new sticker price? Which of these three forces is hitting your current budget the hardest? Let's swap notes below.
0
0 comments
Why Your HOA Fees Keep Climbing: Massachusetts Dues Are Up 26%
powered by
skool.com/condoops-hoa-training-hub-6363
Free training and community for Massachusetts condo and HOA trustees.Learn what the job really involves, protect your board, and run a better building
Suggested communities
Powered by