Homegrown: Improving macroeconomic conditions responsible for strong revenue growth

The Homeowners' Associations industry has experienced strong growth over the five years to 2017, largely due to an improving economy. During the recession, the industry, whose main source of revenue is assessment fees homeowners pay to their respective associations, experienced declines due to a decrease in housing starts and an increase in vacant homes. Over the past five years however, foreclosures have decreased in conjunction with rising per capita disposable income and employment, enabling assessment fees, and thus revenue, to rise. These favorable economic trends are expected to continue over the five years to 2022. This, in addition to an expected increase in the number of baby boomers joining community associations, will keep industry revenue steady and growing moving forward...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Rising residency rates and incomes enabled associations to pass through higher assessment charges
  • Higher employment increased homeowners’ ability to pay annual assessment fees
  • Rising assessment fees will contribute to higher profit margins for the industry
  • Industry Report - Industry Key Buyers Chapter

    The Homeowners' Association industry has a very low market share concentration. In 2017, the largest homeowners' associations accounted for less than 1.0% of the industry's revenue. Due to the industry's nature, associations are confined to operating within a local or regional scope. As community associations become larger, the cost of constructing communities, maintaining common amenities and coordinating events typically increases. The largest homeowners' associations, such as the Reston Association and the Highlands Ranch Community Association, have more than 50,000 residents in their communities. Due to the nature of the industry, market share concentration is not expected to rise significantly over the next five years...purchase to read more.

    Additional Insights for the Homeowners' Associations Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Homeowners' Associations Industry are

  • Access to volunteer labor
  • Having a good reputation
  • Ability to attract local support/patronage
  • IBISWorld analysts also discuss how external factors such as Homeownership rate and Housing starts in the Homeowners' Associations industry impact industry performance..

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    What's in this report

    What is the Homeowners' Associations Industry?

    A homeowners’ association is a legal entity created by a real estate developer for the purpose of developing, managing, selling or administering a community of homes. It is given the authority to enforce the community’s covenants, conditions and restrictions, and to manage its common amenities. It allows the developer to end its responsibility, typically by transferring ownership of the association to the homeowners after selling off a predetermined number of lots.

    Industry Products
  • Homeowners assessments and membership service fees
  • Membership activities
  • Rental, real estate, interest and investment related income
  • Industry Activities
  • Operating fraternal organizations
  • Operating homeowners' associations
  • Operating condominium associations
  • Operating community associations
  • Operating housing co-operatives
  • Operating tenant associations (except advocacy)
  • Operating property owners' associations
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Homeownership rate
  • Housing starts
  • National unemployment rate
  • Number of adults aged 50 and older

  • Current Performance
  • There’s no place like home
  • Assessment fees improve
  • Industry employment slowly expands
  • Chart: Revenue Growth

  • Industry Outlook
  • Cyclical real estate recovery
  • Rising assessments
  • Senior housing communities
  • Table: Homeowners' Associations Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Homeowners' Associations Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Janitorial Services
  • Landscaping Services
  • Pest Control
  • Waste Collection Services

  • Products & Services
  • Homeowners assessments and membership service fees
  • Other
  • Membership activities
  • Rental, real estate, interest and investment related income
  • Chart: Homeowners' Associations Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Homeowners associations
  • Condominium associations
  • Housing cooperatives
  • Chart: Major Market Segmentation for the Homeowners' Associations Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesRent and utilitiesDepreciationPurchasesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Homeowners' Associations

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Homeowners' Associations Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Homeowners' Associations Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Homeowners' Associations Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Home Ownership Rate (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
  • Fees that residents pay to live in community associations.
  • Leasing Cooperative
  • The cooperative does not own the building or property.
  • Limited Equity Co-Ops
  • Limit the resale value of shares.
  • Market-Rate Cooperatives
  • When shareholders may buy and sell their shares at full market value.
  • Senior Housing Cooperatives
  • Housing communities designed for senior citizens.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Homeowners' Associations is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Homeowners' Associations:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Homeowners' Associations market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Homeowners' Associations, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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