Suburban rules: Majority of new homes built in community association

by Julia Berger

suburban-community-housing-market-2016

A recent survey shows about six out of every 10 homes built in 2016 were built within homeowner’s or community associations.

The U.S. Census Bureau’s Survey of Construction (SOC) defined homeowner’s associations as “formal legal entities created to maintain common areas of a development and to enforce private deed restrictions; these organizations are usually created when the development is built, and membership is mandatory.” Last year, 59.8 percent of new homes were built within these development types, according to SOC data — the most in the last eight years. The next highest amount was 59.1 percent in 2013. Since 2011, more than 50 percent of all homes have been built within a community or homeowner’s association.

A breakdown of the country’s nine Census regions found that community developments and homeowner’s associations are far more commonplace in certain areas than others. The Mountain region, made up of Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah and Wyoming, had the highest share of new homes built in community development: 82.3 percent. New England — including Massachusetts, Maine, New Hampshire, Vermont, Rhode Island and Connecticut — had the lowest percentage of homes built in these kinds of communities at 29.5 percent.