The Road Ahead for HOA Management Services

The outlook for the HOA management services industry is bright. Demand is growing, technology is transforming operations, and the sector’s resilience continues to attract investors. As consolidation accelerates, the gap between average and premium assets will widen—those who invest in scale, technology, and management will reap the rewards of higher multiples.

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Resilience Meets Innovation

Continued Growth in Demand

The demand for HOA management services is rising, fueled by the increasing number of community associations and the growing complexity of managing them. In the U.S. alone, there are now more than 365,000 community associations, with over 76 million Americans residing in HOA-governed communities—a figure that continues to climb annually.

This growth is not limited to the U.S. North America leads the market, but regions like Asia-Pacific are seeing rapid expansion due to urbanization and the proliferation of planned communities. The need for professional management is particularly acute in large-scale HOAs, where operational complexity and resident expectations are highest.

Technology as a Key Differentiator

The industry is experiencing a technological renaissance. Modern financial management systems, cloud-based platforms, and AI-powered tools are increasingly standard. These solutions automate routine tasks, enhance data security, and provide real-time access for residents and boards. AI is being used for predictive maintenance, budgeting, and even resident communications via chatbots.

The HOA software market itself is booming, projected to grow from $9.5 billion in 2023 to $18 billion by 2032 (CAGR of 7.1%). This digital transformation is not just a trend—it’s a competitive necessity. Companies that fail to adopt technology risk obsolescence, while those that lead in innovation command premium valuations.

Resilience and Essential Services

HOA management services are considered essential by most communities. Even during economic downturns, demand remains stable, with only minor reductions in annual spend (typically 2-3%). This resilience is due to the critical nature of services provided—financial management, maintenance, compliance, and community relations—which HOAs often cannot perform in-house on a scale.

Evolving Homeowner Expectations

Millennials and Gen Z are entering the housing market in greater numbers, bringing new expectations for digital engagement, transparency, and sustainability. HOAs and their management companies must adapt, offering remote meetings, mobile access, and eco-friendly initiatives to meet these demands.

Regulatory and Financial Pressures

Economic fluctuations, rising costs, and increasing insurance premiums are prompting HOAs to adopt more rigorous budgeting and financial planning. Boards are leveraging data-driven tools to ensure long-term stability and transparency, further increasing reliance on professional management.

M&A Environment Ripe for Consolidation

Highly Fragmented Landscape

The HOA management industry remains highly fragmented, with a handful of large national players (e.g., Associa, FirstService, RealManage) and a long tail of regional and local firms. This fragmentation creates ample opportunity for conRecurring Revenue. HOA management contracts are typically long-term and provide predictable, recurring revenue streams.

Acquisition Interest Drivers

Recurring Revenue. HOA management contracts are typically long-term and provide predictable, recurring revenue streams.

Client Stickiness. HOAs are reluctant to switch providers due to the complexity of transition and the value of established relationships.

Technology Adoption. Firms with proprietary or integrated digital platforms are especially attractive, as they can deliver operational efficiencies and enhanced client service.

Scalability. Multi-office operations managing thousands of doors demonstrate resilience and efficiency, making them prime targets for strategic buyers.

Management Depth. Companies with robust leadership teams and less reliance on owner-operators are valued higher, as they present lower transition risk and greater scalability.

Recent Deal Activity

M&A activity remains strong, with over $281 billion invested across 4,142 real property services deals between 2021 and 2024. Acquirers range from large strategic players to private equity firms, all seeking to capitalize on the sector’s stability and growth potential.

Valuation

EBITDA Multiples

The most common metric for valuing HOA management companies is a multiple of EBITDA, which are varying widely based on scale, technology, management structure, and growth prospects. Smaller, owner-dependent firms with limited scale typically trade at 4x–8x EBITDA, while larger, multi-office firms with strong management teams, advanced technology, and proven M&A integration capabilities can command >10x EBITDA.

Across the broader real property services sector, the average EV/EBITDA multiple is 11x, with a median of 9x and a range from 2x to 29x—the upper end reserved for highly differentiated, tech-enabled platforms.

For those companies that have been able to develop a model with recurring revenue and operational efficiency, the average EV/revenue multiples have been 7x, with a median of 6x.

Summing it Up

Companies that demonstrate meaningful operational independence, technological innovation, and a proven track record of growth are best positioned to command competitive valuations and drive industry success. As markets evolve, the ability to adapt, integrate advanced technologies, and maintain strong client retention will remain critical for thriving in an increasingly dynamic business environment. These qualities not only ensure sustained profitability but also attract strategic acquirers who value scalability, efficiency, and resilience.

ABOUT ENCORE AMC PARTNERS

Encore AMC Partners is a premier M&A advisory and management consulting firm headquartered in Newport Beach, California, distinguished by decades of hands-on experience as both executive operators and investment bankers. Our team’s unique blend of operational leadership and technical transaction expertise enables us to deliver strategic guidance that is both empathetic to founders’ objectives and rigorously focused on value creation.

We serve small to mid-market companies across a range of industries, providing tailored M&A advisory, exit strategy planning, and management consulting services designed to maximize shareholder value and support lasting legacies.

THE M&A DEAL TEAM ENSEMBLE

Encore AMC Partners is comprised of a core M&A advisory team and a management consulting team.

The firm’s advisory team, below, has a combined 100+ years of multifunctional M&A experience from both sides of the table. The senior partners have led M&A as C-suite operators and as M&A advisors, making us uniquely qualified to create a market because we speak the language of both buyers and sellers.

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