[gnicholas]

I guess I think of HOAs as being organizations that are not necessary and that govern single-family homes. Townhomes that have adjoining roofs and condos that have shared roofs/elevators/hallways/etc. require some sort of governance to handle maintenance of common areas.

It's true that the most egregious complaints about power-hungry board members can be similar among HOAs and condo/coop boards, but in my mind HOAs are different in that they are not strictly necessary.

I would agree that in the areas you mention, $1M doesn't cover a single-family home, or even undeveloped land for a home. But I would guess that many first-time buyers in this area actually buy homes that cost a good deal more than $1M, with cash from IPOs or acquisitions. We got new neighbors after the FB IPO and the Nest acquisition, for example.

[bradlys]

Indeed. If I buy (as a first time homeowner), it’ll be for 2-3m. Our next door neighbors are first time homeowners and bought for $2m (not including the $200k+ in renovation costs).

I’m pretty sure the people buying townhouses aren’t just people trying to get into the market but also people who will not likely be able to afford more. The gap between a townhouse and a decent standalone house is still a large gap and it only gets wider as time goes on. Thus it becomes even harder to go from townhouse to sfh even if you already own a townhouse...