Gated Communities: A practical understanding

Gated communities are growing in popularity for home buyers. Originally centered around retirement communities, these communities now range in size from small (fewer than 100 homes) to large (greater than 1,000 homes) with or without additional amenities within the gates. Most of these gated enclaves are found in southwest and southern states, such as Arizona, Texas, Florida, and Georgia; and the gated concept is now closing in on the rest of the country as well.

By some estimates, gated communities comprise 10 percent of the new home market. According to the US Census Bureau, in 2004, gated communities house an estimated 16 million Americans, about 6% of all households. In major metropolitan areas, 50% of new housing units are being built as gated communities, since private developments allow local municipalities to receive property taxes without having to provide services such as street maintenance and traffic enforcement.

Generally, this type of restricted community is built encircled by a closed perimeter of walls and fences, with controlled access for ingress and egress by way of gates and/or gate attendants. In reality, a gated community is any residential area which physically restricts the entrance of nonresidents or vehicles. The gated community is not so different from condos with doormen or suburbs that use distance as a barrier.

Popularity of home buying inside a gated community

• The overwhelming reason that home buyers purchase in a gated community is a sense of security. Walled and gated entrances provide privacy, peace of mind, and establish a pride of ownership. This pride often results in increasing home values for the individual's property.
  
  
• With a gated community, there will be a reduction in “through” traffic since access is limited to a select group.
  
  
• Home buyers express a desire for exclusivity. Because of this increased demand, builders are designing more gated communities, thus the growth in availability of this housing lifestyle.
  
  
• Gated communities usually develop and implement strict design restrictions and require adherence to rules and regulations, which makes them a popular choice for home buyers.
  
  
• There are often shared values and similar economic levels amongst the homeowners within a gated community that encourage people to stay rooted in their homes for longer periods.
  
  
• A desire for a lifestyle and amenities that local governments cannot produce or sustain leads to migration into a gated community with recreational activities, golf courses, and social interaction.
  
  
• Gated communities utilize privatization of services (trash, snow removal, security forces, street cleaning), thus allowing the members of the association to customize services to meet their needs and desires.
  
  
• A general unhappiness with public sector services contributes to the willingness of homeowners to pay privately for similar services, and in some cases, the residents of gated communities have been known to incorporate as a separate municipality or other legal subdivision.

Drawbacks of a gated community

Expenses: While millions enjoy the benefits of a gated community, additional expenses related to operating a gated community are part of the budget and must be paid for by a homeowner association's members. Gate equipment requires regular repairs and maintenance. Vehicular damage can result from impatient homeowners intent on opening the gate at a faster rate than the gates are designed to operate. If police or fire officials need access to the community, and do not have proper access codes, they have been known to damage a gate to enter the community. With a gate attendant, community costs will be incurred for 24/7 manned operations. Cameras and other high-tech equipment involved in monitoring vehicles can be costly to maintain and upgrade. Landscaping features designed for an upscale entryway will add to the cost of annual upkeep of the community.

Security: Many homeowners believe that “gated” means “security”. However, their expectations are not necessarily realistic. The reality is that gated means “controlling vehicular access”. But even then, entry by unauthorized persons is possible when drivers tailgate one another.

Private Roads: Homeowners with a home-based business may be in for a surprise if their business results in increased vehicle and truck traffic. In cases of privately owned streets, an association can object to allowing vehicles into the community if the vehicles are entering on a frequent basis for delivery and/or pickup to a home-based business. Additionally, private roads are not patrolled by local police for traffic enforcement. Only residents of gated communities have access to these roads and the association regulates traffic control of its privately owned streets - - often, with only limited success.

What's in the future for gated communities?

One issue of debate is how gated access can sometimes block public access to beaches, trails, or nature preserves. Some question whether or not public monies should be used to protect private property where public access is limited or prohibited. There is also the tax equity issue. Residents of gated communities pay both local property taxes and homeowner association fees alike. Some such communities consider this double taxation and are beginning to raise questions as to equity and how they might receive rebates on the cost of the public works and public safety services they provide for themselves, rather than receiving from the taxing authority.

Gated communities provide a wonderful lifestyle option, but like many other housing options, there are numerous aspects of a gated community to consider before purchasing a home. The more you know in advance, the greater the likelihood that you will find peace and enjoyment with your next residence.