HOA & Upkeep

HOA fees and ongoing home maintenance are the costs that make homeownership more expensive than the mortgage payment alone — yet they’re among the most consistently underestimated line items at the time of purchase. The general financial planning rule of thumb is to budget 1–3% of a home’s value annually for maintenance and repairs. On a $2 million home, that’s $20,000–$60,000 per year in a reserve or actual spend — a meaningful number that doesn’t appear in the mortgage approval calculation.

HOA fees vary enormously by property type and community. A luxury high-rise condo in a major city typically carries monthly HOA fees of $1,500–$5,000, which cover building staff, amenities, structural reserves, and common area maintenance. Some flagship buildings with extensive amenities — pools, concierge, fitness centers, valet — charge $5,000–$10,000 monthly. Annual HOA costs at this range represent $18,000–$120,000 in mandatory spending that functions almost identically to a rent payment but without appearing in affordability calculations as prominently as it should.

Special assessments are the HOA cost that arrives unannounced. When a building’s reserve fund is underfunded and major capital projects become necessary — a new roof, elevator replacement, facade repair, HVAC system — the cost is assessed against individual unit owners. In older buildings or those with poorly managed reserves, special assessments of $20,000–$100,000 per unit are not uncommon. Reviewing a building’s reserve study before purchase is one of the most valuable due diligence steps a condo buyer can take.

For single-family home maintenance, landscaping represents a significant recurring cost at the high end. Weekly professional lawn and garden care for a property with substantial grounds runs $15,000–$40,000 annually in major markets. Pool maintenance adds $3,000–$8,000 per year. Seasonal services, HVAC maintenance contracts, and housekeeping combine to create a substantial operating budget for any property. The Real Estate pillar covers HOA costs alongside property tax and home insurance for the complete ownership cost picture.