Exclusive Restrictions Such as Those Proposed Can NEGATIVELY Impact Property Values

While most HOA provisions are believed to actually increase property values, studies have shown when HOAs couple private covenant regulations with public zoning regulations in a way that is overly burdensome to future homeowners, those restrictions can not only undermine the positive impact on values from other covenants but, worse, can generate a negative property value effect. Many people will not buy into communities that have excessive occupancy zoning restrictions such as these. It’s pure economics – fewer buyers = less demand = lower prices. Don’t accept any HOA Board’s promises that excessive restrictions will increase property values. Do your own research. You can see several studies on our Research page.