Homeowners should be aware of the impact of HOA fees and property taxes on the overall cost of a home. In 2024, 3 million households in the U.S. paid over $500 a month in HOA or condo fees. Increases in these expenses can make a once affordable home unaffordable.

HOAs enforce rules, oversee shared spaces, and collect fees for expenses. Average monthly HOA fees in the U.S. are $390, totaling $4,680 a year. Failure to pay fees can result in fines or property liens. In 2024, 81% of new single-family homes sold belonged to HOAs.

Property taxes in the U.S. are rising with home values. The median property tax bill was $3,500 in 2024, a 2.8% increase from 2023. Homeowners can contest their assessed value to save money, with 40.5% potentially saving $100 or more annually.

Amid a changing real estate market, selling a home can vary by location. Nationwide, homes are spending more time on the market with flat prices, but strong sellers’ markets exist in some regions. Mark may face challenges selling his home due to rising expenses and market conditions.

To address increased expenses, Mark can contest his property tax increase and reassess his home value. This could save him money annually and help budget for higher mortgage and HOA costs. Consideration of the rental market and relocation to a more affordable area are also options.

For anyone facing financial strain from rising HOA fees and property taxes, it’s important to explore options to reduce expenses. Contesting property taxes and reassessing home values can provide relief and help manage the overall cost of homeownership.

Read more at Yahoo Finance: Rising property taxes and HOA fees are crushing me as a single dad. How can I keep my home?