New Research Highlights Growing Importance of Reserve Studies in Community Associations

Survey finds community associations increasingly use reserve studies to plan infrastructure, manage costs, and safeguard homeowners.

FALLS CHURCH, DC, UNITED STATES, February 27, 2026 /EINPresswire.com/ -- New research from the Foundation for Community Association Research highlights the growing importance of reserve studies in helping community associations understand and proactively plan for the maintenance and replacement of critical infrastructure. With rising construction costs, aging assets, and inflation, proactive planning has never been more urgent to prevent unexpected costs, deferred repairs, and special assessments for homeowners.

What Is a Reserve Study and Why It Matters

Reserve studies are budgetary planning tools that help community associations, including homeowners associations (HOAs), condominium associations, and housing cooperatives, understand and prepare for the maintenance and replacement of shared infrastructure such as roofs, roads, and mechanical systems. Each study includes a physical and financial analysis and a recommended funding plan that helps communities complete projects on schedule without relying on emergency funding or special assessments.

“Reserve studies are a cornerstone of effective board governance and strategic planning,” says Dawn M. Bauman, CAE, chief executive officer of Community Associations Institute. “They help boards anticipate future needs, manage risk, and make informed decisions that keep communities financially resilient and well-maintained for current and future homeowners.”

Why It Matters to Homeowners

Community associations are a major part of the U.S. housing market. More than 77 million Americans, roughly one-third of the population, live in 373,000 communities nationwide. Because associations collectively fund and maintain critical infrastructure, reserve studies help protect homeowner investments, maintain neighborhood stability, and prevent unexpected assessments that could affect property values.

“Reserve studies are no longer optional best practices, they are essential planning tools for the long-term safety, financial stability, and sustainability of community associations,” says Jake Gold, CAE, executive director of the Foundation for Community Association Research. “Our research shows boards are taking them more seriously than ever, even as challenges around funding gaps and homeowner communication remain.”

Key Findings

• Reserve studies are widely adopted and essential. Nearly all associations surveyed maintain a reserve study, and most boards treat it as an ongoing planning tool rather than a one-time report.

• Funding gaps persist. Many associations are still underfunded or partially funded due to rising construction costs, inflation, and aging infrastructure.

• Communication is the biggest hurdle. Boards report difficulty explaining reserve studies and funding needs to homeowners, particularly regarding assessment increases.

• External pressures shape planning. Aging buildings, insurance requirements, and new state or local regulations influence repair priorities and funding strategies.

• Boards want better tools. Respondents cited the need for clearer summaries, visual aids, training, and resources to use reserve studies effectively and communicate their value to homeowners.

Access the full Reserve Study and Funding Trends survey and related research at foundation.caionline.org. For guidance on best practices, review CAI’s Reserve Study Standards and visit the Condo Safety resource center for information on structural integrity and condominium safety policy efforts.

Blaine Tobin
+1 703-970-9235
email us here
Community Associations Institute

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