From the San Francisco Business Times: https://www.bizjournals.com/sanfrancisco/news/2026/03/02/hoa-fees-sanfrancisco-condominium-sales-compass.html?
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Krysen Heathwood, Compass Development Marketing Group's head of new development for the Western U.S., said insurance premiums have increased significantly are are impacting homeowners dues
TODD JOHNSON | SAN FRANCISCO BUSINESS TIMES
By Ted Andersen – Digital Editor, San Francisco Business Times Mar 2, 2026 Updated Mar 2, 2026 6:39am PST
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Story Highlights
Insurance premiums and labor costs have significantly increased homeowners association dues.
San Francisco condo sales dropped 19% in January amid rising HOA costs.
Active listings dropped 36% in January, reducing overall sales
The cost of condo ownership is going up in San Francisco, but not the way one might expect.
San Francisco condominium owners are experiencing rising homeowners association dues, typically increasing 4% to 5% annually, with some buildings seeing even larger increases.
The main reason for these increases, according to a number of brokers, is sharply rising insurance costs across California, as insurance companies reassess their risks and heighten premiums. Other factors contributing to higher HOA fees include increased costs for building maintenance, utilities, staff wages and the need to build up reserve funds for future repairs and improvements.
HOA costs cover maintenance, repair and management of shared community spaces and amenities like landscaping, pools, gyms, roof repairs, security and trash removal. These monthly or yearly dues also fund insurance policies for common areas and contribute to a reserve fund for long-term, major capital projects.
Slowing sales
In the face of these rising costs, the San Francisco condo market saw a slight slowdown in January with 94 sales, down 19% from the previous January. Krysen Heathwood, Compass Development Marketing Group's head of new development for the Western U.S., told the Business Times that active condo listings were down by 36% in January, contributing to the reduction in sales, though she noted that some new condo developments experienced high buyer traffic and increased number of homes going into contract.
"Similar to single-family homes, insurance premiums have increased significantly therefore impacting homeowners dues," Heathwood told the Business Times.
"There is also the notion that the work-from-home patterns postpandemic have
created more wear and tear in buildings, thus repairs and maintenance costs have increased. Labor costs to maintain these buildings has also increased. All of these trends impact housing and the cost of living in general."
For S.F.'s overall condo market to start the year, the city experienced a slight yearover-year decrease in both average sale price per condo unit ($1,311,642, a 0.3% decrease) and average price per square foot ( $1,072, a 0.5% year-over-year decrease) compared to January 2025.
Planning for the long term
Some brokers argue that buildings that gradually increase HOA dues are generally better off than those that delay increases and later need to charge residents large special assessments for emergency repairs.
"Most buildings throughout the city are seeing increased monthly fees of 2% to 6% as operating expenses such as staffing and energy are increasing," said Gregg Lynn, a luxury agent with Sotheby's International Realty. "Many boards of directors are becoming more focused on long-term capital improvement projects and are increasing the monthly contribution to reserve funds."
Compass agent Milan Jezdimirovic, who specializes in S.F. condo sales with his wife Dunja Green, said he's seen HOA dues ticking up across most San Francisco buildings, with typical increases of 4% to 5% annually.
"This is driven by increased operating costs, such as higher insurance premiums, higher maintenance and utility costs, higher HOA management fees (a pay raise is needed to retain employees), and the need for buildings to strengthen their reserve funds for long-term capital improvements," Jezdimirovic said. "Wellmanaged buildings that proactively adjust dues tend to avoid larger special assessments later, which ultimately benefits homeowners."
But despite these rising HOA dues, many people still choose to live in condos versus single-family homes, a choice often driven primarily by price, location, lifestyle and maintenance considerations, Jezdimirovic added.
Milan Jezdimirovic is a real estate agent with MD Real Estate, which is affiliated with Compass. MD REAL ESTATE
Justin Goldberg of Compass, who has specialized in the South of Market and South Beach real estate market for the past two decades, said people are seeing HOA dues increase across most associations throughout the city. He said while rising utility costs, staff wage adjustments and underfunded reserve accounts requiring emergency capital improvements have all contributed, the most significant and consistent driver across every HOA has been the sharp rise in insurance premiums.
Compass agent Justin Goldberg
THE GOLDBERG GROUP
"Insurance costs across California have surged as carriers reassess risk exposure and rebuild pricing model," Goldberg said. "Most associations are facing doubledigit percentage increases and higher deductibles year over year. As a result, HOA budgets are being recalibrated to ensure long-term financial stability, adequate reserves, and compliance with evolving insurance standards.”
Meanwhile down in Silicon Valley, Ken DeLeon, founder of Palo Alto-based DeLeon Realty, told the Business Times that HOA fees have been rising in that region over the past 20 years. In San Mateo County, condos are pretty much where they were in 2018, compared to single-family homes, which have risen significantly since before the pandemic.
"I think that the high HOA fees are just making it almost where for the total cost it's not a matter of, 'Oh, I can get this condo for a million dollars, that's a really good value, but oh, the HOA is $1,000 or $800 a month and it's not taxdeductible,' so I think that that really is kind of a big driver.
"Also even as the fees go up, oftentimes what they're providing from an insurance perspective has declined where most HOA fees no longer cover earthquake anymore, " DeLeon said. "So it's kind of a bad situation in the sense of pretty much straight-line, strong appreciation above inflation coupled with usually lower services being offered. So, the condo market definitely has been impacted, and this is true not only in Silicon Valley, but true in the whole nation."