Falls Church, Va., Jan. 06, 2025 (GLOBE NEWSWIRE) -- Experts forecast continued modest growth for the U.S. housing market in 2025, driven by improvements in inventory, home sales, and prices along with more stable mortgage rates. According to a leading community association research group, The Foundation for Community Association Research (FCAR), homeowners associations, condominiums, and housing cooperatives remain a preferred choice for buyers seeking both new and existing homes.
The Foundation for Community Association Research, an affiliate of Community Associations Institute, projects 3,000 to 4,000 new condominium and homeowners associations will begin development in 2025. Community associations — including homeowners associations, condominiums, and housing cooperatives — currently house 77.1 million Americans, representing 33% of the U.S. housing stock.
“Community associations continue to be a resilient and popular housing option,” says Dawn M. Bauman, CAE, executive director of the Foundation and CAI’s chief strategy officer. “As market conditions stabilize, we anticipate steady growth in the development of new communities, offering both value and stability for homeowners.”
Market Highlights and Projections
- Rising inventory: Housing inventory is projected to increase by 11.7% fueled by new construction and more homeowners listing properties.
- Moderate price growth: Home prices are forecasted to rise by around 2% annually.
- Stable mortgage rates: Rates may stabilize or decline to 6% by year’s end.
- Increased housing: Construction is expected to approach 1.5 million units annually, though inventory levels will remain below pre-pandemic levels.
The Foundation’s U.S. National and State Statistical Review projects the total number of U.S. community associations will grow from 369,000 to as many as 373,000 by the end of 2025.
Homeowner Satisfaction Remains High
According to the 2024 Homeowner Satisfaction Survey, conducted by Zogby Analytics for the Foundation, residents of community associations continue to report high satisfaction levels:
- Overall experience: 86% of homeowners rate their experience as very good or good (60%) or neutral (26%).
- Governance: 82% believe their elected governing board serves the community’s best interests.
- Management support: 72% say their community manager provides valuable support.
- Property value protection: 87% agree their association’s rules protect or enhance property values (63%) or have a neutral effect (25%).
Since the 1970s, community associations have been a preferred housing choice offering proximity to city centers, shared amenities, and professional management. These communities also enable municipalities to transfer services like trash pickup, snow removal, and stormwater management to homeowners.
For more community association statistics, visit foundation.caionline.org/research/industry-data.
Sources
[1] https://www.nar.realtor/magazine/real-estate-news/more-home-buyers-expect-rosier-2025-housing-outlook
[2] https://www.nar.realtor/research-and-statistics/research-reports/housing-hot-spots
[3] https://finance.yahoo.com/news/nvar-predicts-2025-northern-virginia-151500946.html
[4] https://www.rate.com/resources/2025-housing-preview
[5] https://www.housingwire.com/articles/top-10-housing-markets-2025/
