What rising HOA dues really mean for condo buyers

Across Los Angeles, condo HOA dues have been climbing — driven by insurance costs, deferred maintenance, and inflation. For buyers, the instinct is to see rising dues as a negative. The reality is more nuanced.

Why dues rise

Insurance premiums for multifamily buildings have jumped sharply in recent years. Aging buildings also face real maintenance needs, and responsible boards raise dues (or fund reserves) to meet them rather than deferring costs into future special assessments.

Healthy vs. worrying increases

A gradual, well-explained increase tied to a funded reserve plan is a sign of a well-run association. A sudden spike, a special assessment, or dues that have been kept artificially low for years can signal trouble ahead.

Ask not just what the dues are, but why they’re at that level — and where they’re headed.

When comparing buildings, factor dues into your true monthly cost, and weigh what they include. A higher-dues building that fully funds its reserves may be the safer long-term buy.