Trends. Trends in Condominiums, Co-Ops and PUDs. Condominium Summary

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1 in Condominiums, Co-Ops and PUDs THE SAMPLE This 2012 edition reflects 2011 financial data from 2,062 properties in the United States and Canada, representing 264,084 units. Table 1 breaks down the sample by three association types: condominiums, cooperatives and planned unit developments (PUDs). The typical condominium complex contains 90 units while cooperatives contains 127 units and planned unit developments contains 173 units. Table 1: 2011 Samples Total Sample By Association Category Item Condo Co-Op PUD Number of Projects 1, Number of Units 97,435 9, ,501 Average Number of Units per Project Table 2 presents the sample breakdown by building type and category. 76% of the condominiums were townhouse or lowrise properties and 17% were high-rises. In the cooperative sample, high rise properties accounted for 6, and townhouse properties represented 19%. 41% of the PUD sample was combination properties and 32% were low-rise properties. Table 2: Sample Distribution by Building Type Building Type Condo Co-Op PUD High-Rise 17% 6 Low-Rise 13% 32% Townhouse 26% 19% 27% Combination 7% 8% 41% Table 3 is the sample distribution by price range and category. In the cooperative sample 54% of the units averaged a value under $300,000 or more, and 32% of the cooperative units were priced at under $90, % of the PUDs were reported to be between $200,000 and $299, % of condominiums were between $120,000 and $299,999 and 11% were over $300,000. Table 3: Sample Distribution by Price Range Table 4 provides breakdown of the sample by age and category. 32% of the condominium projects were between 1980 and The cooperative projects surveyed tended to be older than the condominiums or PUDs. Of the 72 cooperatives, 9 were built before The PUDs are newer with 49% of the developments constructed within the last 12 years. Table 4: Sample Distribution by Age Construction Year Condo Co-Op PUD Before % 67% % 23% 5% % 8% 17% % 2% 29% % 49% 2010-to data Condominium Summary Table 5 lists the median total annual operating expenses by building type. For all types combined, the median total operating expenses amounted to $2, per unit. This represents an increase of 1.5% from High-rise properties experienced a decrease of 4.5% to $3, Townhouse properties increased 1.1% to $ Table 5: Total Expenses Condominiums U.S. Median Expenses in Dollars per Unit per Year High-Rise $4, $3, % Low-Rise 2, , % Townhouse 1, , % Combination 2, , % All Types Combined 2, , % Table 6 identifies median operating expenses by major expense categories for all condominiums. Repair and maintenance costs, which account for the largest portion of total operating costs, decreased 2.6% to $ per unit per year. All other categories increased: administrative expenses increased 6.8%; operating expenses increased 6.8%; and fixed expenses increased 8.6%. Total expenses reflected an increase of 1.5%. Price Range Condo Co-Op PUD Under $90,000 11% 32% 2% $90,000-$119,999 12% 4% 7% $120,000-$199,999 33% 7% 35% $200,000-$299,999 33% 3% 43% $300,000 and Over 11% 54% 13% 12

2 Table 6: Variation in Total Expenses Condominiums U.S. All Types Combined As a Percentage Increase Over 2010 Expenses Expense Category Administrative Expense $ $ % Expenses % Repair and Maintenance % Fixed Expenses % Total Expenses 2, , % Table 7 presents the dollar amounts added to reserve funds and the percentage of total operating expenses represented by the amount. The typical association added $ per unit per year to their reserve fund for future replacements and capital reserves. This represents 22.4% of total operating expenses. Contributions to replacement reserves as a percent of total operating expenses for high-rise developments were above the national median, $ added to reserves represented 22.1% of total operating expenses. Contributions to townhouse properties replacement reserves amounted to 24.2% of total expenses, or $ per unit per year. Table 7: Replacement Reserves Condominiums U.S. Median Dollars Added to Reserves in Dollars per Unit per Year Building Total Actual As % Operational Dollars Of TOE Expenses High-Rise $3, $ % Low-Rise 2, % Townhouse 1, % Combination 1, % All Types Combined 2, % Table 8 lists the median monthly assessments by building type. For all types combined, the median monthly assessment was $240.61, a 3.3% increase from High-rise condominiums reported the highest median monthly assessment at $ per unit. Residents at townhouse properties experienced an increase of 3.6% to $189.81; while low-rise properties increased 2.4% to $ Table 8: Median Monthly Assessments Condominiums U.S. Total Expenses and Dollars Reserved In Dollars per Unit per Month electricity and 17% provided gas. For the most part, residents paid for other utilities such as heating fuel and hot water. 44% of the developments provided access to a swimming pool and 53% had garage/parking spaces available to residents. 24% of the condominiums had a recreational building on the complex, and 12% had saunas or Jacuzzis. Table 9: Amenities and Utilities Furnished to Units Condominiums U.S. Percentage of Developments Which Furnish Pool 44% Recreational Building 24% Tennis Courts 13% Sauna 4% Jacuzzi 8% Water 59% Hot Water 11% Heating Fuel 3% Gas 17% Electricity 25% Garage/Parking 53% Planned Unit Developments Summary Table 10 identifies median operating expenses by major expense categories for all planned unit developments. Repair and maintenance costs, which account for the largest portion of total operating costs, increased to $ per unit per year. Expenses increased 8. and administrative expenses increased 1.2%. Fixed expenses decreased to $ Total expenses increased 5. to $ Table 10: Variation in Total Expenses PUDs U.S. All Types Combined As a Percentage Increase Over 2010 Expenses Expense Category Administrative Expense $ $ % Expenses Repair and Maintenance % Fixed Expenses % Total Expenses High-Rise $ $ % Low-Rise % Townhouse % Combination % All Types Combined % Table 9 represents a breakdown of amenities and utilities furnished to individual units and paid by the condominium association. 59% of the developments surveyed furnished water to individual units. 25% of the developments supplied 13

3 Table 11 presents the dollar amounts added to reserve funds and the percentage of total operating expenses represented by the amount. The typical association added $95.68 per unit per year to their reserve fund for future replacements and capital reserves. This represents 17. of total operating expenses. Contributions to replacement reserves as a percent of total operating expenses for townhouses were the highest of the three property types at $ per unit. Low-Rise properties represented the lowest contributions at 14.8% or $63.67 per unit. Table 11: Replacement Reserves PUDs U.S. Median Dollars Added to Reserves in Dollars per Unit per Year Building Total Actual As % Operational Dollars Of TOE Expenses Low-Rise $ $ % Townhouse 1, Combination % All Types Combined Table 12 lists the median monthly assessments by building type. For all types combined, the median monthly assessment was $54.77, a 3.2% increase from Townhouses reported the highest median monthly assessment at $ per unit, an increase of 1.2% from Residents at Low-Rise properties experience a decrease of 8.6% to $ Table 13 represents a breakdown of amenities and utilities furnished to individual units and paid by the planned unit development association. 13% of the developments surveyed furnished water to individual units. 13% of the developments supplied electricity. For the most part, residents paid for other utilities such as heating fuel, hot water, and gas. 27% of the developments provided access to a swimming pool and 11% had garage/parking spaces available to residents. 12% of the planned unit developments had a recreational building on the complex, but less than 5% had saunas or Jacuzzis. Table 13: Amenities and Utilities Furnished to Units PUDs U.S. Percentage of Developments Which Furnish Pool 27% Recreational Building 12% Tennis Courts 13% Sauna 1% Jacuzzi 3% Water 13% Hot Water 1% Heating Fuel Gas 1% Electricity 13% Garage/Parking 11% Table 12: Median Monthly Assessments PUDs U.S. Total Expenses and Dollars Reserved In Dollars per Unit per Month Low-Rise $44.94 $ % Townhouse % Combination % All Types Combined % 14

4 Graphic Distribution of Median Annual Expenses as a Percentage of Total All Expenses By Community Category All Condominiums All Planned Unit Developments 33.9% 28.4% % 14.9% 13.7% 5.2% 14.5% 23.6% All Cooperatives 28.9% 23.1% 18.3% 13.1% 15

5 Graphic Distribution of Median Annual Expenses as a Percentage of Total All Expenses (continued) By Building Type High-Rise Condominiums Townhouse Condominiums 29.6% 37.4% 40.9% 12.7% 14.8% 22.1% 14.6% 14.9% Low-Rise Condominiums Combination Condominiums 32.9% 29.3% 42.3% % 13.2% 17.3% 16.8% 16