HOA Trends for 2023
2023 is finally here, and there’s no surprise in saying that people are ready for something new. HOAs, in particular, took the stage with their advancements in technology, inflation, and transition from overcoming the pandemic. Communities all over the U.S. used these challenges as a way to involve and grow from their mistakes. As we venture into 2023, HOAs are excited to start on the right foot. Consider it a clean slate and a new beginning — a time for change, growth, and engagement. Here are five trends you should expect to see in your HOA in 2023.
The world of technology made a significant breakthrough in HOAs in 2022. Thanks to the pandemic, communities have come full circle and realized technology is more than just needed, It’s required. 2023 will bring several technological advancements to HOAs. Consumers want faster information, and convenience is key! HOA software has shown to increase communication and productivity in a number of ways. In fact, rumor has it that 2023 will bring several technological advancements regarding metrics. For example, data intelligence — specifically performance metrics. As simple as it may sound, property managers want more data. The results that software has brought to HOAs are now turning heads and bringing a new vision to communities all over. They’re now seeing the benefits of incorporating technology into their HOAs and are ready to find out what’s happening behind the scenes.
- Churn - ”Churn is a measurement that tracks the retention rate of any given business.” Churn has been considered one of the most important metrics of an HOA. Happy Tenants = Increased Profit. Churn now only saves time and money but it increases an HOAs reputation.
- Satisfaction - Another significance that comes with data intelligence is that it brings increased satisfaction. Property management companies can key into what really matters by understanding what makes the homeowner happy and satisfied. As a result, boards and homeowners build trust and loyalty to the HOA.
One of the most talked about topics of 2022 was the need for communities to be more engaged. Communities want to feel connected, and they’re prepared to see change. We may not be able to say COVID is long-gone, but we are ready to put it to rest. The line of communication between homeowners and their property management companies is growing, and it’ll only get better from here.
If there was one thing we learned from technology, it’s that technology isn’t a real person — it can’t physically talk or give you a hug. The truth is people need physical engagement — it’s human nature. It’s anticipated that HOAs will combine these concepts, technology, and engagement, to increase the homeowners' experience. Forms of engagement may include:
- Contextual engagement - “Without context, “engagement” is just noise.” Contextual engagement is exercised by technology — it helps marketers understand a consumer’s behaviors. This applies to both historical and real-time behaviors.
- Emotional engagement - Emotions are a critical factor in engagement. Initially, marketers used colors, visuals, and content to create their message and brand. If you’ve ever participated in helping create an HOA website or sent out a newsletter, you may have used specific colors or messaging your emotions, or emotional experience influenced. The key question is, “what stemmed from those decisions?” Thanks to consumer management technology, HOA management companies may now be able to understand better and track these emotional behaviors — or in other words, what makes us click?
3. Community involvement
Community involvement leads back to our discussion regarding engagement. HOAs are ready to step outside, but some may need help doing this. 2023 will be the year that HOAs will finally lay down their mask and breathe. Expect to see more community social events filled with opportunities to get people involved. In addition, those that are still cautious about partaking in large public events will still have the chance to attend by taking advantage of new forms of virtual technology. This will allow members to be part of the event without being physically present.
Another topic that raised eyebrows in 2022 was the demand for more security and protection of personal information. HOAs are responsible for protecting their homeowners and taking reasonable precautions to protect confidential information. 2023 will bring more added security to HOAs by including ways to reduce the severity of compliance pitfalls. With the vast amount of software partners being offered to HOAs, we anticipate seeing a rise in this topic for all HOAs going forward.
5. Rise in cost
The rise in the price of labor, materials, and housing wins the gold for the most popular topics of the year. It wasn’t until mid-year that inflation hit a homerun — homeowners started to experience raises in their dues, along with other sources of labor such as landscaping and repair costs. In fact, inflation “affected many community associations with many raising their dues between 3-5% for the 2022 budget year.” Going into 2023, expect to see dues go up as high as 10-15%. Some factors may include the cost of landscaping, labor, maintenance and repairs, insurance, and project cost.
- Landscaping costs: Due to a shortage in supplies, landscaping companies are experiencing a shortage in fertilizer said to have been influenced by the Ukraine and Russian war. It’s been reported that fertilizer prices have increased as high as 30%.
- Maintenance and repair - Both have directly resulted from global supply chain shortages. HOAs should be prepared to factor in increased costs for regular maintenance and repairs that could occur during 2023.
- Insurance - “Insurance increases are on the rise; where there is an incumbent on the deal, we are seeing 15-30% increases on insurance.” Unfortunately, 2023 will continue to see the same trend, with the possibility of prices increasing even higher going into 2024.
In addition, to the increase in cost, we could also consider how the rise in cost may benefit an HOA. For example, a survey conducted by opendoor.com found that nearly 49% of their respondents across the U.S. said: “they would be motivated to move somewhere new for a more affordable cost of living.” Another 34% responded, “they would relocate for a lifestyle change, such as moving closer to outdoor recreation or to join a close-knit local community.” Hence, “tight-knit” — “local community.” It sounds like they may need an HOA. Although HOAs may not be able to fix how much something costs, they can control how they scale and utilize their funds. Nevertheless, 2023 will bring in new innovative ways of attracting new members by offering more affordable houses to those that may seek a less costly way of living.