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Gated Communities and Property Values
... These restrictive covenants have been shown to benefit homeowners limiting their exposure to negative externalities generated by nearby properties. This benefit tends to get capitalized into housing prices, with an observed price impact ranging from 2% to 17% in different market settings (Agan & Tabarrok, 2005;Cheung, Cunningham, & Meltzer, 2014;Groves & Rogers, 2011;Hughes and Turnbull, 1996;LaCour-Little & Malpezzi, 2001;Rogers, 2006Rogers, , 2010Scheller, 2015;Speyrer, 1989). ...
... Gating has been seen to increase property values by 7-24% within different regions in the United States (LaCour-Little & Malpezzi, 2001, 2009. Even when there are no additional amenities within the gated community as compared to their ungated neighbors, a 6.07% ...
... price premium is observed (Bible & Hsieh, 2001). Private streets seem to add virtually no further value beyond the HOA (LaCour-Little & Malpezzi, 2001). Although an increased HOA size does not negate the premium of being located within an HOA, it has been observed that relatively large HOAs command lower sale prices which may be due to their less exclusive or intimate nature . ...
While community associations were relatively uncommon only a few decades ago, they now outnumber municipal governments in the United States. Since 1970, the number of community associations operating in the country has grown 30-fold representing approximately 24 percent of the U.S. housing stock (Treese, 2014). Despite the rapid expansion of community associations, relatively little is known about their impact on residential property values. This research review addresses this issue by examining the extant academic literature to determine how and when the activities of community associations are capitalized into housing prices.
... Developers see gated projects as an important niche marketing strategy in a competitive environment: enclaves can attract consumers searching for a sense of community, identity, and security. By providing beautiful amenities and keeping out undesirables, gating may increase property values (Baron, 1998;Bible and Hsieh, 2001;Blakely, 1999;LaCour-Little and Malpezzi, 2001;Townshend, 2002). Market demand results in a large proportion of new communities in the US being gated ; in other countries, gated projects typically appeal to a relatively small, affluent elite. ...
... One of the key functions of gating for prestige developments is protecting property values. A growing consensus suggests that gating increases the cost of development and return to investors (Bible and Hsieh, 2001;LaCour-Little and Malpezzi, 2001;McGoey, 2003). The developer, then, builds the gates to attract affluent buyers and improve sales. ...
... Signs advertising`p rivate road'' or``no through traffic'' make strangers feel unwelcome. Alternating times or days of gate closures may discourage through traffic (LaCour-Little and Malpezzi, 2001). Parking lots at the entrance to projects, or roads paved with nonstandard materials, also convey the sense that the visitor is entering private space. ...
In the last decade the planning literature has reflected growing interest in the topic of gated communities. To date, this relatively new field of research has generated limited theoretical develop- ment. Although recent literature has begun to elucidate the social and economic contexts that make gated enclaves a global phenomenon, few works offer an overview of the physical features of gated communities. The key source articulating a framework for understanding gated communities is Blakely and Snyder's, Fortress America. Although Blakely and Snyder provide detailed findings on the form of gated projects in the US context, they say little about gating elsewhere. This paper draws on a range of literature on gated enclaves to examine and augment the typology created by Blakely and Snyder. Building theory to explain the form and character of gated communities requires the consideration of a range of historical experiences and international differences in practice. Although classification alone does not constitute theory, it provides an important foundation for those seeking to generate premises and principles for further theoretical development. It also offers useful tools for case studies of practice.
... For almost two decades, gated communities have been under the scrutiny of scholars, especially those addressing the question of whether or not they produce a housing price premium and thus contributing to residential segregation. Earlier studies on housing prices in gated communities have focused either on the price premium produced by gating a neighborhood, by the means of hedonic modeling in the U.S. (Lacour-Little andMalpezzi, 2001, Bible andHsieh, 2001) or other empirical methods in South Africa (Altini and Akindele, 2005). All studies yield comparable results about the price premium in favor of gated communities, compared to non-gated subdivisions in the same area. ...
... Hence, both private urban governance and gated morphology are not independent in explaining the social structure of the community (Low, 2009) or the price premium in gated communities (Lacour-Little and Malpezzi, 2001). The case study of a historical, gated neighborhood in Saint Louis, shows that the premium is decomposed in that part due to the privacy-security effects of gating; and the other part due to private subdivision and the homeowner association, and its proactive regulations and governance efforts to protect the neighborhood from negative externalities (Lacour-Little and Malpezzi, 2001). ...
... Hence, both private urban governance and gated morphology are not independent in explaining the social structure of the community (Low, 2009) or the price premium in gated communities (Lacour-Little and Malpezzi, 2001). The case study of a historical, gated neighborhood in Saint Louis, shows that the premium is decomposed in that part due to the privacy-security effects of gating; and the other part due to private subdivision and the homeowner association, and its proactive regulations and governance efforts to protect the neighborhood from negative externalities (Lacour-Little and Malpezzi, 2001). The authors elaborate and reinforce the findings of Oscar Newman in his study of private streets of Saint Louis, by bringing together gated street and residential association as a means to avoid decay and other externalities in a neighborhood (Newman et al., 1974). ...
Housing prices being one factor thought to contribute to segregation patterns, this article aims at differentiating gated communities from non‐gated communities in terms of change in property values. To what extent do gated communities contribute to price filtering of residents, and do patterns of price differentiation favor gated communities in the long run? The article provides an analysis of the territorial nature of gated communities and how the private urban‐governance realm theoretically sustains the hypothesis that property values within gated communities are better protected. In order to identify price patterns across time, we elaborate a spatial analysis of values (price distance index) by identifying gated communities with real estate listings in 2008 and matching these with historical data at the normalized census‐tract level from the 1980, 1990 and 2000 census in the greater Los Angeles region. We conclude that gated communities are very diverse in kind. The wealthier the area, the more it contributes to fuelling price growth, especially in the most highly desired locations in the region. Furthermore, a dual behavior emerges in areas with an over‐representation of gated communities. On the one hand, gated communities are located within local contexts that introduce greater heterogeneity and instability in price patterns. In this way, they contribute to a local increase in price inequality that destabilizes price patterns at neighborhood level. On the other hand, gated communities proliferate in contexts that show a very strong stability in terms of price homogeneity at the local level.
Résumé
La sélection des résidents d'un quartier par le prix constituant un facteur fondamental de la ségrégation, cet article vise à analyser la manière dont les gated communities se différentient des autres lotissements non enclos, en termes d'évolution des valeurs immobilières. Les gated communities constituant avant tout des lotissements comme les autres, à la différence près que leur accès est fermé et contrôlé, notre étude porte sur la manière dont ces lotissements fermés se différencient des autres lotissements en termes d'appréciation ou de dépréciation relative des biens immobiliers; et ce faisant dans quelle mesure elles contribuent à une sélection sociale des résidents accentuée par des logiques différentielles de production des prix immobiliers sur le temps long. Dans une perspective expérimentale à l'échelon local dans la région de Los Angeles, cet article vise donc, d'une part, à explorer la nature territoriale des gated communities, en particulier la manière dont leur appartenance au genre plus général des lotissements en copropriété (Common Interest Development) permet de structurer la réflexion sur la plus‐value immobilière générée par rapport aux lotissements non‐enclos. L'analyse porte d'autre part — avec les outils de l'analyse spatiale — sur les discontinuités des prix immobiliers dans les zones ou les lotissements planifiés (fermés ou non) sont surreprésentés (entre 1980 et 2008). A partir de données immobilières, nous identifions les gated communities et les comparons aux données fournies au niveau des Census Tract du recensement en 1980, 1990 et 2000, afin d'analyser les types de trajectoires temporelles des prix immobiliers. Les résultats montrent que les gated communities sont d'une part très hétérogènes, et contribuent globalement à soutenir la hausse des marchés immobiliers, en particulier dans les zones les plus attractives. De plus, les gated communities introduisent localement une plus grande hétérogénéité et instabilité dans les types de trajectoires temporelles des prix immobiliers à l'échelon du quartier.
... Developers see gated projects as an important niche marketing strategy in a competitive environment: enclaves can attract consumers searching for a sense of community, identity, and security. By providing beautiful amenities and keeping out undesirables, gating may increase property values (Baron, 1998;Bible and Hsieh, 2001;Blakely, 1999;LaCour-Little and Malpezzi, 2001;Townshend, 2002). Market demand results in a large proportion of new communities in the US being gated ; in other countries, gated projects typically appeal to a relatively small, affluent elite. ...
... One of the key functions of gating for prestige developments is protecting property values. A growing consensus suggests that gating increases the cost of development and return to investors (Bible and Hsieh, 2001;LaCour-Little and Malpezzi, 2001;McGoey, 2003). The developer, then, builds the gates to attract affluent buyers and improve sales. ...
... Signs advertising`p rivate road'' or``no through traffic'' make strangers feel unwelcome. Alternating times or days of gate closures may discourage through traffic (LaCour-Little and Malpezzi, 2001). Parking lots at the entrance to projects, or roads paved with nonstandard materials, also convey the sense that the visitor is entering private space. ...
In the last decade the planning literature has reflected growing interest in the topic of gated communities. To date, this relatively new field of research has generated limited theoretical development. Although recent literature has begun to elucidate the social and economic contexts that make gated enclaves a global phenomenon, few works offer an overview of the physical features of gated communities. The key source articulating a framework for understanding gated communities is Blakely and Snyder's, Fortress America . Although Blakely and Snyder provide detailed findings on the form of gated projects in the US context, they say little about gating elsewhere. This paper draws on a range of literature on gated enclaves to examine and augment the typology created by Blakely and Snyder. Building theory to explain the form and character of gated communities requires the consideration of a range of historical experiences and international differences in practice. Although classification alone does not constitute theory, it provides an important foundation for those seeking to generate premises and principles for further theoretical development. It also offers useful tools for case studies of practice.
... Designed to minimize crime and promoting exclusivity, it has its positive and negative effects to the surrounding neighborhood. The relationship between cluster development and the price has been studied previously by researchers; for example, the study by LaCour-Little and Malpezzi (2001), Pompe (2008) and LeGoix and Webster (2008). Grand cluster attribute is a newly introduced concept in Indonesia. ...
... From the research result, we can see that the some of the findings are similar with previous research discussing on the relationship between consumer preferences and price of housing products in other countries. Examples include the study by Tse and Love (2000) in Hong Kong that elaborates the relationship between amenities and price, the study by LaCour-Little and Malpezzi (2001) that analyzes the relationship between gated community development or housing cluster and housing price in St. Louis, USA; the study by Jim and Chen (2006) that elaborates the relationship between facilities, location uniqueness and housing price in Guang Zhou, China; and the study by Plessis and Saayman (2011) that found the relationship between environmental qualities, location, amenities, product quality and infrastructure quality and price for residential in South Africa. ...
Purpose
– This study aims to address the factors or attributes that would influence the price of residential products in Jakarta Metropolitan Region.
Design/methodology/approach
– In total, 202 respondents from all across Jakarta Metropolitan Region participated in the questionnaire for this study. Demographic questions are categorized into age, gender and preferences for real estate locations. The questionnaire was made based on the author’s previous studies. Of the total respondents, 127 were males and 75 were females with age ranging from 18 to 56 years old. For data analysis, the authors utilized factor analysis, Cronbach’ α test and analysis of correlation to reach the conclusion of this study.
Findings
– The findings suggested that from the initial three factors groups, there are five new groups that emerge as influencing factors for housing prices. Cronbach’ α score were verified (α = 0.906). Correlation study result suggested that the initial three factors groups produce a significant correlation between each of them, except for the factor of “overall location” and “located near family.” After factor analysis, the research results show that there are two new additional groups of factors that emerge as influences to housing prices. There are significant scores of differences between gender and real estate location preference toward the groups of factors.
Research limitations/implications
– This study shows how physical qualities, concept and location factors influence the housing price perception of their consumers. The result shows to be relatively reliable and valid.
Originality/value
– The study is the first to analyze the relationship between the factors for preferences on residential products and housing price in Indonesia. This paper is also intended to be the first to pioneer the study on factors of preferences on residential products in Indonesia. The findings will be useful to develop pricing models for housing product in Indonesia.
... House/Property Value Premium. Based on several hedonic studies gates attract investment because of the price premium for houses in these communities fetch compared to those surrounding unenclosed neighborhoods (Kirby et al. 2006, Bible and Hseih 2001,LaCour-Little and Malpezzi 2001. Although this tends to be more the case for newer gated neighborhoods, a recent study by LeGoix (2007) indicates that over time, middle income and senior gated communities may actually lose value as the community is unable to maintain the cost of private governance and infrastructure upkeep. ...
... The economic evidence is clear that purposely preserving desired land uses and excluding unwanted land uses such as affordable housing and the poor increases property values. For examples restricting age(Allen 1997; Gunterman and Moon 2002; Quang and Grudnitski 1997), increasing apartment security(Hardin and Cheng 2004), installing walls and gates(Bible and Hseih 2001;LaCour-Little and Malpezzi 2001); and preserving historic districts (Gale 2002) all increase rents and property value. Ironically, crime has little impact on house prices overall particularly in low crime areas but house prices in high crime areas are discounted(Lynch and Rasmussen 2001). ...
This study looks at characteristics of rental gated communities in the United States from a national
perspective and based on a case study of four Southwestern Counties, Riverside County and San
Bernardino County in California, Maricopa County in Arizona, and Clark County, Nevada. Tenure
differences between owned and rental gated communities are compared. The study also debates
who actually benefits from rental gated communities and what that effect that has upon the
community. This analysis is done by assessing whether minorities experience higher housing
opportunities in rental gated communities newer, fast growing areas as the study area. Descriptive
statistics of rental gated community characteristics are presented and neighborhood diversity indices
are analyzed. The study finds that rental gated communities are much like their owned gated
community counterparts and that new housing markets do not present better housing opportunities
(at the neighborhood level)for minorities, particularly those neighborhoods with more rental gated
properties present. Policy implications are discussed.
https://vtechworks.lib.vt.edu/handle/10919/27915
... Ce faisant, quelle est la portée du discours de la promotion immobilière, reposant sur un marketing de la crise urbain, sur les territorialités construites par l'enferment résidentiel ? Afin de contextualiser le propos, rappelons que le développement des lotissements fermés est d'une part une forme d'urbanisme soutenue par les collectivités locales, destinée à faire porter le coût de l'étalement urbain sur le privé (promoteur, et in fine l'acquéreur du logement) (Le McKENZIE, 2005;McKenzie, 1994;McKENZIE, 2005), et d'autre part un moyen efficace de protéger à long terme l'investissement immobilier (BIBLE, 2001;LACOUR-LITTLE, 2001;LE GOIX, 2003;LE GOIX, 2002). De plus, le développement des lotissements privés crée un certain nombre de conséquences sur les municipalités d'accueil : on peut y mesurer une intensification de la ségrégation socio-économique , et des risques non négligeables de prédation des ressources publiques locales par des intérêts privés LE GOIX et LOUDIER-MALGOUYRES, 2005). ...
... Dans le cadre de modèles de consommation qui privilégient le paraître, l'emballage, dans ce marketing du « package » qui commercialise les biens de consommation avec des bouquets de services (à l'image des services de téléphonie), une hypothèse fondamentale sur la nature des gated communities consiste en effet à en relever la valeur snob liée à la fermeture, à l'exclusion, mais aussi à l'emballage de la résidence privée enchâssée dans un écrin d'exclusivité qui produit une plus-value, et ce quel que soit le public visé. Cette survalorisation relative du patrimoine immobilier a fait l'objet de plusieurs études, validant cette hypothèse tant du point de vue théorique qu'empirique (BIBLE et HSIEH, 2001;LACOUR-LITTLE et MALPEZZI, 2001;LE GOIX, 2003;LE GOIX, 2002). ...
Afin de cerner la portée de l'urbaphobie dans les métropoles états-uniennes, on s'attache à étudier la forme résidentielle qui incarne probablement le mieux les discours anti-urbains dans les paysages urbains contemporains : les enclaves résidentielles privées et fermées. Cet article vise à proposer une analyse des composantes du discours porté par un produit immobilier devenu un symbole global d'un idéal anti-urbain, les gated communities.
Dans ce cadre, la démarche proposée ici comporte deux questions. Dans quelle mesure le produit immobilier gated communities relève d'une promotion d'un modèle d'urbanisme qui revêt des valeurs ou des discours anti-urbains ? En quoi ces quartiers fermés et sécurisés sont-ils originaux tant du point de vue morphologique que de leur projet social, et différent-ils des autres développements résidentiels, pour que se justifie une telle focalisation à leur propos des interrogations sur la fragmentation urbaine ? Ce faisant, quelle est la portée du discours de la promotion immobilière, reposant sur un marketing de la crise urbain, sur les territorialités construites par l'enferment résidentiel ?
Avatar parmi d'autres d'un discours anti-urbain classique qui traverse dans le temps long la ville américaine, les gated communities apparaissent comme un produit avant tout périurbain, loin de la ville, qui tend à s'enraciner dans les origines toponymiques locales, qui met en valeur son site — en toute exclusivité —, son cadre de vie. On retiendra des structures spatiales, des associations entre composantes du discours et structures socio-économique de l'espace, en se gardant d'en déduire des relations de cause à effet. On a relevé les associations entre le discours valorisant la rente de site et les catégories les plus privilégiées ; le discours mettant en avant les loisirs semblent plutôt viser les classes moyennes âgées, par le biais des communautés de retraités ; le discours plus neutres d'une toponymie reprenant les noms des rues visant plutôt les classes moyennes issues de l'immigration récente, dans des quartiers plus centraux, donc moins sensibles aux discours anti-urbains. Au final, le produit gated communities s'inscrit dans l'espace social comme un produit immobilier parmi d'autres : dans les discours, la fermeture relève plus du symbole et de la stratégie immobilière que du séparatisme social souvent supposé.
... This paper aims at assessing the impact of gates and walls on property values over time ; and if gated properties generate enough value to compensate the cost of private governance. Previous researches based on case studies and hedonic prices modeling have clearly demonstrated that gating a private neighborhood is more efficient than regular private governance (non-gated homeowner association) in protecting property values (Bible & Hsieh, 2001;Lacour-Little & Malpezzi, 2001). Instead of focusing on case studies, this paper addresses the issue of prices at the scale of the whole metropolitan Los Angeles area, in a systemic analysis of price determination in gated neighborhoods, given a complex chaining of positive and negative externalities that might affect them, through multiple scales of interactions. ...
... Hedonic modeling demonstrated the measurable effect of the location of the property within a gated community (Bible & Hsieh, 2001). In the case of legacy gated enclaves built circa 1920 in Saint Louis, Missouri, hedonic analysis demonstrated a 26 % price premium where gates have been erected between 1979 and 1998 ; as a comparison, a regular non-gated enclave produced an estimated 9 % price premium only (Lacour-Little & Malpezzi, 2001). In the Los Angeles region, the price premium created by gates for property within an enclave compared to properties in contiguous non-gated neighborhoods was also demonstrated (Le Goix, 2002). ...
The paper focuses on how gated communities, as private means of provision of public infrastructure and security, real estate products and club-economies, produce changes in housing market patterns. Based on an empirical study of Los Angeles (California) data, it aims to trace to which extent gates and walls favor property values and if the presence of gated communities produces over time (1980-2000) a deterrent effect on non-gated properties abutting the enclave, or close to it.
Resulting of a demand for security, gated communities are a leading offer from the homebuilding industry. But their sprawl emerges from a partnership between local governments and land developers. Both agree to charge the homebuyer with the cost of urban sprawl (construction and maintenance costs of infrastructures within the gates). Such a structuring of residential space is then particularly desirable on the urban edges, where the cost of urban sprawl exceeds the financial assets of local public authorities. New private developments provide local governments with new wealthy taxpayers at almost no cost. As compensation, the homebuyer is granted with a private and exclusive access to sites and amenities (lakes, beaches, etc.). Such exclusivity favors the location rent, and usually positively affects the property value within the gated enclaves.
But it is also assumed that operating cost of private governance are paid for by the increase of property values. Market failure nevertheless occurs when costs are raising above a sustainable level compared to property values.
Changes produced by gates lead to at least two outcomes. At first sight, residential enclosures produce a price premium, thus being a smart investment. Furthermore, gated communities might well be able to generate enough property value to pay off the price of private governance. But the analysis stands on a short term basis. Larger and wealthier gated communities are successful in shielding their property values and generate enough revenue to pay for a cost of private governance, whereas a majority of average middle class gated enclaves do not succeed in creating a significant price premium, and / or did not maintain significant growth of price during the last decade. Such gated neighborhoods are at risk of a market failure in the private provision of urban infrastructure, leading to potential decay.
... Additionally, the time or number of days the campus alternately closes the gates may hinder access. The parking lot at the entrance of the project or a road paved with non-standard materials also conveys the feeling of visitors entering a distinct space [4,42,46]. ...
Scientific interest in how residential patterns affect both people’s subjective sense of safety and their behavior is increasing. The surge of gated communities in the world has changed the way we live to a great extent. Research on the gated development trend in postmodern cities is still limited; therefore, the purpose of this study was to analyze the relationship between residents’ attitudes toward gated enclaves and their sense of safety. At the same time, the relationship between a sense of security and active leisure behavior was also investigated. Using data collected from 350 college students in Fuzhou University Town, this study introduces a conceptual model to test the relationship between closed enclaves, campus security, and active leisure behavior while controlling population and community characteristics. The results of structural equation model analysis show that gated enclaves positively correlate with campus safety and positively correlate with active leisure behavior, and a safe campus positively correlates with active leisure behavior. The results of this study focus on the importance of gated enclaves as a living environment, and the discovery of functional characteristics of gated enclaves supports future interventions. In other words, when promoting active leisure behavior and increasing the sense of safety in the neighborhood environment, attention must be paid to the characteristics of these gated enclaves. In addition, the simultaneous measurement of these structures provides a dynamic observation of the existing environment, as well as information for future research and construction. Decision makers and urban planners can use these results to promote interaction and healthy behavior in the community under the multi-angle development of the existing access control, thereby improving residents’ sense of security, and increasing leisure participation.
... Few studies examining the housing price dynamic of GCs reveal its significantly positive effect on housing values. For example, in their studies of GCs in different regions of the United States, LaCour-Little [36] documented a 9% price premium associated with GCs between 1980 and 1998, Bible [37] discovered a 6% price premium for the period 1996-1998 and Pompe [38] reports a price premium of around 19% over the period [2002][2003][2004][2005]. A recent study in Ghana reveals a price premium of GCs ranging from 42% and 48% [39]. ...
The ongoing COVID-19 pandemic has left a strong imprint on many aspects of urban life. Gated communities (GCs) in China are less commonly perceived as a negative and segregated urban form of community compared to other contexts, owing to their wide variety and relative openness. Yet, the enhanced security zone function and the popularity of GCs, along with the heightened segregation and exclusion effects, mean they are most likely to emerge in post-pandemic urban China because of the perceived effectiveness of GCs in preventing health risks by excluding outsiders during the pandemic. Drawing on empirical data from Beijing, this research presents strong evidence for a strengthened perceived ‘security zone’ effect of GCs during the pandemic. Given that rigid pandemic control measures were organized at the community level, a large-scale household survey in Beijing suggests that residents commonly recognise the effectiveness of GCs in security control and show a strong preference for GCs over open communities after the pandemic, even though there is a lack of direct evidence of reduced COVID-19 risk in GCs. The heightened perceived ‘security zone’ function of GCs has shown a significant impact on the housing market, evidenced by an increase of 2% in the housing prices for GCs, compared with those of open communities. The rising popularity of GCs is also evidenced by a significant increase in property viewings by potential homebuyers and smaller price discounts in actual transactions in gated communities vis-à-vis open communities. We argue that the rising risk-averse sentiment in the post-pandemic era has given rise to the popularity of GCs. This study provides timely and fresh insights into the changing meaning of GCs in post-pandemic China.
... The physical division of gated communities caters to middle-and upperincome people, who are inclined to withdraw behind the gates (Marcuse, 1997). Gated communities are considered to innovatively and efficiently organize local public services because negative externalities can be excluded by the physical enclosure and associated restrictions (LaCour-Little and Malpezzi, 2001). To some extent, although upscale gated communities may contribute to positive externalities for nearby poor neighbourhoods (Xu and Yang, 2008), they are divisive and seen as posing a potential threat to social cohesion (Marcuse, 1997). ...
Gated communities have become a common feature in recent decades and have been shown to lead to social inequality to the detriment of the poorest social classes. Because access to urban green space is crucial for both physical health and spiritual pleasure, it is often regarded as an indicator of social justice; however, there are many references to the current inequity in urban green space accessibility. Our study aimed first to measure the potential spatial accessibility of green space in the central urban area of Beijing; then to evaluate the socio-economic disparities in green space accessibility; and finally, to assess the effect of the policy of “opening up gated residential communities” on urban green space accessibility. We adopt the Gaussian-based two-step floating catchment to assess the spatial accessibility of green spaces in each residential zone in the central area of Beijing, and the ordinary least squares model was used to evaluate the inequity in accessibility caused by socio-economic disparities. The results reveal that lower income residential zones have remarkably lower access to green spaces. Next, by comparing the differences in accessibility equity between two comparable scenarios in which all communities have dismantled their fences, we unexpectedly find that the inequity of access to urban green space does not improve but becomes more pronounced. We attribute this result to socio-spatial polarization. Our findings can be used by urban planners to target current urban planning system reform and by policymakers to focus closely on the gradual spatial polarization between the rich and the poor.
... Gated communities are residential areas with restricted access and privatized public space inside the walls and gates. (Blakely and Snyder 1997;Tedong et al. 2014;Csizmady 2011;Atkinson and Flint 2004;LaCour-Little 2001). There is an increasing trend in many countries to develop a private, exclusionary and secure neighbourhoods through gating and controlled access. ...
The most common form of building in coastal peri-urban area, in middle shoreline of Caspian Sea in North of Iran, is gated community with the exclusive ownership and restricted access to the public shoreline. This research aims to clear the main causes, motivations and mechanism of exclusive space production in North of Iran. In contrast to the fact that many studies revealed as gated communities rose from the service-base motivations of the residents such as safety and high quality of the environment, this research shows the market-base motivations for living inside the gates. The factors of maintaining and increasing the property capital and protecting the family prestige are the main motivations for residence in gated communities in North of Iran. Due to the privileged life style and importance of agricultural lands for building gated communities, the main incentive of land owners for selling the agricultural lands is to derive benefit from selling lands and saving financial capital in Banks, instead of agricultural activities. The negligence of regulations in guidance and control of agricultural lands and in the processes of land use changes, causes the effectiveness of informal relations and illegal production of exclusive space in the context of environmental lands.
... Given the magnitude of growth of gated communities all over the globe numerous methodologies and frameworks are constructed to evaluate the effect it has on all dimensions of city and urban development. Some of which focus on the impact of gated communities on property value and city economy (LaCour-Little and Malpezzi, 2001), while others on governance and city management (Le Goix 2003;MIVT (Metropolitan Institute at Virginia Tech), 2005;Shah, 2006;Landman, 2007). Another group focuses on the security and life style dimension (Low, 2004). ...
Gated Residential communities (GRC) are emerging style in several cities in the Middle East since 1990. The goal of this study is to analyze the styles of GRC's and the locations of their growth in Jordan. The study is based on information gathered from several newly built GRCs. Physical properties of GRCs are studied in details. The trends of developed GRCs show three major types. (i) Horizontal gated developments/gated villa towns, (ii) vertical gated developments and (iii) mixed type gated developments/gated towns. The results of our study demonstrate that gated communities have emerged in Jordan cities on peripheries and new suburbs. As lands on the GRC's out-skirts are suitable for large-volume housing outside the city, their proximity to metropolitan facilities and finally their prices make them suitable if not the best locations. Meanwhile, the expansion of gated communities puts pressure on natural environment.
... This latter host of issues is a subject of research within the fourth and most recent strand of GEs' research. It is marked by three work paths: (i) analysis based on hedonic modeling of house prices for specific areas (Lacour-Little and Malpezzi 2001;Bible and Hsieh, 2001;Pompe 2008); (ii) analysis based on representative survey data for the United States and some metropolitan areas (Sanchez and Lang 2002;Sanchez et al. 2005;Vesselinov 2008); and (iii) spatial analysis of specific neighborhoods in the context of larger urban areas (Le Goix 2005a;Richter and Goetz 2007;Vesselinov and Le Goix 2009). ...
Gated communities are among the newest residential formations and have proliferated in many countries around the world particularly in the last three decades. Certain forms of enclosure existed in parts of the world in the past, and elements can historically be found in different cities, like private roads, enclosed parks, or fenced off properties. Nevertheless, the contemporary spread of gated enclaves is unprecedented in history and clearly rooted in the present political economy of housing, as well as in the intersection between social and spatial relationships. The article focuses on the characteristics of gated enclaves in the United States and compares them with similar enclaves in Canada and Europe. It is argued that these types of compounds contribute to privatisation, fragmentation, and differentiation of cities, leading to increased urban inequality. This new type of residential neighbourhood ultimately contradicts the very notion of a community.
... On average, GCs are known to generate a price premium, and to better guaranty the homogeneity of property values within the neighborhood and to better protect values on the long run than other non-gated private neighborhoods in the US. (Bible and Hsieh 2001;Lacour-Little and Malpezzi 2001;Le Goix and Vesselinov 2012). ...
This working paper investigates the social dimensions of gated communities in US western metropolitan areas, and investigates their contribution to segregation patterns at the metropolitan level. On the basis of a socio-economic typology at the block group level, we analyze the socio-economic patterns associated with gated residential streets in 20 metropolitan areas in the western US (in California, and in Las Vegas and Phoenix). We use geographically referenced data at the gated street level to build a database of gated streets and gated block groups. This definition of gated block groups and gated streets is then compared with the results of a multivariate analysis investigating socioeconomic patterns in three aspects: race and ethnicity, economic class and age in 2010 census. The results show a contrasting understanding of their contribution to segregation patterns: whereas larger gated communities are more likely to be "retirement communities", the stronger trend relates to the amplitude of the diffusion of both large and small gated communities within the wealthier neighborhoods. But the analysis of smaller gated developments demonstrates the really diverse and wide spectrum of the gated and private realm of residential neighborhoods.
... Studying the private streets of Saint Louis, Newman (1972) assumed a causal link between the resilience of a neighborhood, and its social homogeneity, the social control allowed by dead-ends over the collective space, and the street closure that have reinforced the feeling of ownership over entire neighborhoods (Newman, 1972). Since, it has been empirically demonstrated that gating a private neighborhood generates a price premium, better guarantees the homogeneity of property values within the neighborhood, and better protects values in the long run, when compared with other non-gated CIDs that are located in the vicinity (Bible and Hsieh, 2001;Lacour-Little and Malpezzi, 2001;Le Goix and Vesselinov, 2012). ...
This paper investigates the social dimensions of gated communities (GCs) in US western metropolitan areas and how they contribute to segregation. We use geographically referenced data of GCs, and introduce a local metric based on social distance indices (SDI). This multivariate spatial analysis investigates homogeneity in three aspects: race and ethnicity, economic class and age between 2000 and 2010 census. The results indicate contrasting effects given different levels of geography. GCs significantly contribute to segregation patterns at a local level, and this has been locally reinforcing. Although socioeconomic segregation and ethnic status yield the most prevalent structure of local distance, gated enclaves are also significantly structured by age. The findings are considered in the context of a metropolitan decline in levels of segregation. Data also show that GCs are likely to be located within large racially homogeneous areas, and do not significantly contribute to racial segregation.
... Based on several hedonic studies gates attract investment because of the price premium for houses in these communities fetch compared to those surrounding unenclosed neighborhoods (Kirby et al. 2006, Bible and Hseih 2001,LaCour-Little and Malpezzi 2001. Although this tends to be more the case for newer gated neighborhoods, a recent study byLeGoix (2007)indicates that over time, middle income and senior gated communities may actually lose value as the community is unable to maintain the cost of private governance and infrastructure upkeep. ...
The current literature on gated communities characterizes residents as fearful, wealthy, white homeowners. Thus, researchers using recent American Housing Survey (AHS) data were surprised to find that many residents of gated communities live in apartments and that residents of walled or fenced communities were actually more likely to be renters than owners.
This article uses the AHS to explore the characteristics of residents of rental gated communities (the other half). Factors leading to the growth of gated communities in general and gated apartments in particular are considered. Owned and rental gated communities are compared as a first step in defining the differences between these kinds of tenure, and existing research on subsidized gated housing is updated using descriptive and trend data. The housing opportunities and restraints that rental gated communities create for minorities are analyzed, and policy implications for the growth of rental gated communities are discussed.
... Furthermore, much of the infrastructure (for example, sewers, trash collection, streets) is provided by the HOA, thus relieving funds from local governance (McKenzie 1998). LaCour-Little and Malpezzi (2001) tracked housing values in St. Louis, Missouri between 1979 and 1999 and found that, all else being equal, homes with a HOA commanded significantly higher property values, as much as 17% more. ...
The loss of habitat due to suburban and urban development represents one of the greatest threats to biodiversity. Conservation developments have emerged as a key player for reconciling new ex-urban residential development with ecosystem services. However, as more than half of the world population lives in urban and suburban developments, identifying conservation partners to facilitate retrofitting existing residential neighborhoods becomes paramount. Homeowner associations (HOA) manage a significant proportion of residential developments in the United States, which includes the landscape design for yards and gardens. These areas have the potential to mitigate the loss of urban biodiversity when they provide habitat for native wildlife. Therefore, the conditions and restrictions imposed upon the homeowner by the HOA could have profound effects on the local wildlife habitat. We explored the potential of HOAs to promote conservation by synthesizing research from three monitoring programs from Phoenix, Arizona. We compared native bird diversity, arthropod diversity, and plant diversity between neighborhoods with and without a HOA. Neighborhoods belonging to HOAs had significantly greater bird and plant diversity, although insect diversity did not differ. The institutional framework structuring HOAs, including sanctions for enforcement coupled with a predictable maintenance regime that introduces regular disturbance, might explain why neighborhoods with a HOA had greater bird diversity. For neighborhoods with a HOA, we analyzed landscape form and management practices. We linked these features with ecological function and suggested how to modify management practices by adopting strategies from the Sustainable Sites Initiative, an international sustainable landscaping program, to help support biodiversity in current and future residential landscapes.
... This latter host of issues is a subject of research within the fourth and most recent strand of GEs' research. It is marked by three work paths: (i) analysis based on hedonic modeling of house prices for specific areas (Lacour-Little and Malpezzi 2001;Bible and Hsieh, 2001;Pompe 2008); (ii) analysis based on representative survey data for the United States and some metropolitan areas (Sanchez and Lang 2002;Sanchez et al. 2005;Vesselinov 2008); and (iii) spatial analysis of specific neighborhoods in the context of larger urban areas (Le Goix 2005a;Richter and Goetz 2007;Vesselinov and Le Goix 2009). ...
Scholarly research about gated communities is a recently established field of study, because the significant proliferation of these communities has occurred in the last couple of decades. In this article, I argue that the seminal work of Blakely and Snyder (1997, Fortress America: Gated communities in the United States. Washington, D.C.: Brookings Institution Press.) gave the first impetus and the initial research directions in gated communities’ study. The subsequent research established it as a true interdisciplinary urban field and produced important knowledge across several different academic disciplines: sociology, political science, anthropology, urban policy and planning, geography, and legal studies. The article discusses this first phase of theoretical and empirical work, based mostly on qualitative and secondary data sources. A new methodological shift is proposed, which should determine the second phase of research based on hypotheses testing and collection of systematic empirical evidence. Such evidence is essential to understand the wider impact of gated communities on larger urban areas and society as a whole.
... It was reported that residents chose to privatize the streets and gate them in order to locally control zoning and land use and to protect property values. It furthermore appeared that the municipality of Saint Louis was unable to provide the residents with correct infrastructure, thus raising the need for local private arrangements (Lacour-Little, Malpezzi, 2001;Newman, Grandin, Wayno, 1974). It clearly appears that the exclusiveness is originally designed to protect an infrastructure paid in common by associated private property-owners. ...
This paper aims at demonstrating that gated communities, though often presented as a recent unsustainable trend of security-oriented urbanism, which have spread all over the world in the last two decades, are indeed a classical and generic form in urban sprawl and suburban landscape. In attempting this, we apply a theoretical approach that views the private residential community as a club economy to analyze the planning, managing practices an social interactions at the local level.
We balance how private communities might be pro social sustainability tools or in contrast put urban equilibrium (political fragmentation, social interactions) at risk on the suburban edge of sprawling cities. We think that social sustainability issues connect to the genesis of urban edges' morphologies and requires analyzing the underlying forces that structure them. A first section analyses the long term trends in the local emergence of private residential governance, in order to get a better understanding of the diffusion of gated communities and how offer, demand and the local nexus of actors interact. Next, we consider how the local adoption of private urban governance models is structured by the nexus of laws, planning and residential strategies. More specifically, we analyze appropriation strategies of public space by private enclaves residents, and argue that local policies and discourses of intervening actors are often guided by locally driven interests and rent-seeking strategies that might contradict social equity principles. At last, we argue that local path dependency truly explains the success stories of gated communities according to local social and political patterns and local institutional milieus.
Considering the nexus of law, but also the practices of development industries and layout of neighborhoods, the findings balance on one hand the strategies of local actors targeting the building of sustainable communities from the owners and entrepreneurs point of view, and on the other hands the equity principles at a more general level. This demonstrates that common goals of private communities is about getting control over nearby environment (control over public space, amenities, etc.) and guarantee property values. Nevertheless, field studies and residents interviews, empirical data describing political behaviors of GCs and social relations of the residents reveal path dependencies in the local manifestations of private communities. Whatever the legal context, local actors, residents strategies, public bodies of governments and entrepreneurs find ways to meet a continuous demand of local control. This can be met either by the means of private urban governance, or by a local body of public government, depending on how local institutional milieus have structured decision making, fiscal regulation and social exclusion patterns. This concurs to demonstrate that private residential areas political behaviors and social interactions are eventually familiar and consistent with more casual patterns in a suburban world.
... La situation peut localement rendre inopérant cet investissement massif et mimétique dans les systèmes de sécurité, comme à Paris où l:ensemble du parc immobilier a été équipé dans les années 1982 de digicodes (80 % des immeubles équipés), sans que ceci n'est plus d'effet aujourd'hui sur les tentatives d'effraction. Les éléments du débat se compliquent si l'on considère que dans les grandes copropriété réunissant plusieurs centaines de logement, la petite criminalité peut tout à fait venir de résidants eux-mêmes, dont les enfants peuvent parfois connaître une adolescence ni plus ni moins turbulente que celle de leurs voisins (Durington, 2005) -La clôture des gated communities produit un effet positif notable sur la valeur des propriétes (Bible, Hsieh, 2001;Lacour-Little, Malpezzi, 2001). Néanmoins, cette surévaluation se traduit par un dévaluation progressive forte des logements situés à proximité des gated communities, dans des lotissements non-fermés (Le Goix, 2002). ...
Première version : décembre 2005. Cet article dans sa première version a fait l'objet d'une communication orale : Colloque international de géopolitique urbaine « Géopolitique urbaine » : les territoires urbains face aux défis de la ségrégation Etats-Unis – France. Université de Cergy Pontoise – Décembre 2005.
Publication HAL-SHS : version 4 mars 2006 – Première version soumise pour publication à Hérodote. Incluses les figures couleur et la bibliographie complète.
Publication définitive : Octobre 2006 — Le Goix R., 2006, « Les gated communities aux Etats-Unis et en France : une innovation dans le développement périurbain ? », Hérodote n° 122, 3e trimestre 2006, pp. 107-136
http://www.cairn.info/sommaire.php?ID_REVUE=HER&ID_NUMPUBLIE=HER_122
... Studies were conducted assessing the effect of gating over property values. They demonstrated the protection of gated property values(Lacour-Little and Malpezzi, 2001;Bible and Hsieh, 2001), and the deterrent effect on property values in adjacent communities(Le Goix, 2003). ...
Gated communities, which are walled and gated residential neighbourhoods, represent a form of urbanism where public spaces are privatised. In the US, they represent a substantial part of the new housing market, especially in the recently urbanised areas. They have thus become a symbol of metropolitan fragmentation. This paper focuses on how local governments consider them as a valuable source of revenue because suburbanisation costs are paid by the private developers and the final homebuyer, and how this form of public-private partnership in the provision of urban infrastructure ultimately increases local segregation. An empirical study in the Los Angeles region aims to evaluate this impact on socio-economic and ethnic patterns using factorial analysis (dissimilarity indices). As a result, the sprawl of gated communities increases segregation. Very significant socio-economic dissimilarities are found to be associated with the enclosure, thus defining very homogeneous territories, especially on income and age criteria. However, gated communities are located in ethnic buffer zones and stress an exclusion that is structured at a municipal scale.
Purpose
The purpose of this study is to examine the impact of crime risk on housing prices at a national level in Malaysia during the period from 1988 to 2016.
Design/methodology/approach
A hedonic regression approach was used to estimate the Malaysian households’ valuation for crime risk. Specifically, the state-level property index on the state-level reported crime rate was regressed while controlling for state-level socioeconomic variables. The macroeconomic panel nature of the data set provides the merit to use a panel dynamic model instead of the traditional static panel data techniques (fixed effects or first difference).
Findings
Panel dynamic estimators consistently show a negative impact of crime risks on housing prices. The estimated elasticity of housing prices with respect to crime risks ranges from −0.141 to −0.166, in line with existing literature using micro level data. In fact, householders in crime hotspot states are willing to pay more for crime reduction compared to householders in non-hotspot states. The willingness to pay has also increased since the implementation of nationwide crime reduction plans in 2010.
Research limitations/implications
This is the first study that has examined the Malaysian people’s willingness to pay to reduce crime. This information is important in determining the optimal level of government expenditures for public safety.
Originality/value
This is the first study to examine the relationship between crime rates and housing prices in Malaysia. This study contributes to the literature by examining the impact of crime rates on housing prices at a national level by using panel dynamic models. The macro level data results are consistent and complement the existing literature based on micro level data.
This study addresses the issue of factors affecting housing products price in Indonesia, particularly in
Jakarta Metropolitan Region. Based on a conceptual model conceived in the study, this preliminary
study aims to validate the conceptual model and influencing factors for housing products price.
Through a specially designed questionnaire, responses from housing consumers in late 2014 were used
to analyse the current housing market products in Jakarta Metropolitan Region. Factors from the
conceptual model and information about current housing products in Jakarta Metropolitan Region were
combined to produce the questionnaire items. Eleven housing products from various areas and various
segmentations in Jakarta Metropolitan Region were applied into the questionnaire. The findings
suggested different preference factors for each of the housing development. They also confirm the
current housing market conditions in Indonesia are facing overpriced situation. The responses indicate
that consumers cannot afford the housing products offered at their current prices. This condition applies
for most of the socio-economic and demographics attributes including the housing market
segmentation, housing market locations and gender
The rise of the private community association is one of the strongest change in local government in the US. It continues to rise, as the latest figures show that half the new housing was subject to the private governance of a community association from 1980-2000. However, given that they are subject to a large financial disincentive in the form of double taxation, one important neglected issue is why community associations exists in the first place. Private community associations are also subject to double taxation. As a proof, a number of community associations deliver similar services privately that is also provided publicly in other parts of the same jurisdiction in which the community is located. As for the association unit owner, he pays twice, first in the form of private assessments to cover the costs of their own privately provided association services and second through property and other local taxes to cover the costs of the same publicly provided services. Thus, this produces incentives for inefficient local service delivery. In addition, the fiscal disadvantages of private community status extend to other matters, most notable of which is the overlapping of responsibilities, such as garbage collection.
Numerosos estudios han constatado el market premium que gozan las viviendas ubicadas dentro de los barrios cerrados; sin embargo, nula o poca atencion ha recibido el impacto que producen estos sobre el precio de las viviendas que los rodean. Esta cuestion es de central importancia en las ciudades en las que las gated communities u otra clase de common interest housing communities dirigidas a estratos socioeconomicos medio-altos se incardinan en enclaves tradicionalmente de renta mas baja. Desde una perspectiva cualitativa Salcedo y Torres (2004) y Caceres y Sabatini (2004) han sugerido que esta proximidad social produce diversos beneficios, entre otros, unas expectativas de revalorizacion del suelo de los pobladores originales. En esta investigacion, mediante un modelo de precios hedonicos, a partir de informacion de casas usadas vendidas en Nunoa entre el ano 2002 y 2004, se intenta mesurar el impacto que sobre el precio de estas han producido los condominios verticales recientemente construidos. Los resultados sugieren que un condominio de tamano medio produce una revalorizacion de un 4,7% en las viviendas que le rodean; si bien, este impacto es de tipo local. El analisis espacial de los datos, mediante un modelo geograficamente ponderado, revela que la revalorizacion marginal es superior en las zonas de mayor nivel de renta, con lo cual el patrimonio de los hogares mas solventes incrementa aun mas su valor. Por tanto, el impacto de los condominios nunoinos si bien puede incrementar la recaudacion fiscal derivada del impuesto a la propiedad fundiaria; esta lejos de democratizar, en la microescala, la distribucion espacial de los valores inmobiliarios.
This study empirically investigates the degree of physical exclusiveness of multi-family housing estates and its socioeconomic effects. By combining various physical elements devised to blockade and control the entrance to the estate as well as housing units, it constructs the index to quantify the degree of physical exclusiveness for the multi-family housing estates of more than 300 households in Seoul. The statistics reveal that the degree of physical exclusiveness has increased over time and therefore, as a representative example, two-thirds of the estates are now equipped with barricade at the entrance, which often symbolizes `gated community`. The estimation result of hedonic price model show that physical exclusiveness has a significant positive effect on housing price. The household survey data for the case study estates also demonstrate that the residents in the estate of higher degree of physical exclusiveness put a higher housing value on socioeconomic `prestige` as well as `community`, beyond physical `security`, and have closer neighborhood relationship with the residents inside the estate. However, there is no significant difference in neighborhood relationship with the outside residents depending upon the degree of physical exclusiveness.
Housing reforms in China have popularized a new type of settlement that is often constructed in the form of gated communities. This study reports on a survey in Shanghai revealing that most neighborhoods are only semi-enclosed and not technically gated. It was also discovered that gatedness enhances residents' perception of security, but does not contribute significantly to their sense of community. This latter finding may be a result of two competing processes-the retreat of middle-class households to private spaces in order to escape the control of the state versus the escalated efforts of the state to regain control at the neighborhood level by enhancing local sense of identity. Hence, interpreting the social construction of gated communities has to be undertaken with care, taking into account the local production and meaning of gated communities in the distinctive context of post-reform China.
The loss of habitat due to suburban and urban development represents one of the greatest threats to biodiversity. Conservation developments have emerged as a key player for reconciling new ex-urban residential development with ecosystem services. However, as more than half of the world population lives in urban and suburban developments, identifying conservation partners to facilitate retrofitting existing residential neighborhoods becomes paramount. Homeowner associations (HOA) manage a significant proportion of residential developments in the United States, which includes the landscape design for yards and gardens. These areas have the potential to mitigate the loss of urban biodiversity when they provide habitat for native wildlife. Therefore, the conditions and restrictions imposed upon the homeowner by the HOA could have profound effects on the local wildlife habitat. We explored the potential of HOAs to promote conservation by synthesizing research from three monitoring programs from Phoenix, Arizona. We compared native bird diversity, arthropod diversity, and plant diversity between neighborhoods with and without a HOA. Neighborhoods belonging to HOAs had significantly greater bird and plant diversity, although insect diversity did not differ. The institutional framework structuring HOAs, including sanctions for enforcement coupled with a predictable maintenance regime that introduces regular disturbance, might explain why neighborhoods with a HOA had greater bird diversity. For neighborhoods with a HOA, we analyzed landscape form and management practices. We linked these features with ecological function and suggested how to modify management practices by adopting strategies from the Sustainable Sites Initiative, an international sustainable landscaping program, to help support biodiversity in current and future residential landscapes.
In this paper we use geographically referenced data for two metropolitan areas in the U.S. to test hypotheses about the homogeneity of gated communities and their link to segregation. Based on methodology developed by Renaud Le Goix in his study of Los Angeles area, we investigate homogeneity in three aspects: race/ethnicity, economic class and age. The results indicate that gated communities are mostly homogeneous enclaves. Their relevance to segregation patterns is structured through buffer zones: stronger social discontinuities cannot be found matching gated communities boundaries, but at a certain distance from the walls. Overall, gated communities lead to increased segregation by reinforcing the already existing levels of racial residential segregation in each metropolitan area.
In this article we analyze gated communities as a nexus of social and spatial relations within the context of urban inequality. We apply Tickamyer's (2000) sociological framework for incorporating space into the study of inequality, which allows us to substantiate the arguments that the process of gating increases urban inequality. The contributions of this article are three: (1) We generate a new systematic theoretical approach toward the study of gated communities, which we consider as middle range theory; (2) We argue that gated communities reproduce the existing levels of social stratification and that they also define a new, permanent differentiation order in the spatial organization of cities in the United States (in this respect we also arrive at six hypotheses, which can be tested in future research); (3) We introduce the term “gating machine,” where the combination of the interests and actions of local governments, real estate developers, the media, and consumers suggest that prevailing structural conditions assure the future proliferation of gated communities.
This article examines the notion of gated communities and, more generally, privately governed urban neighbourhoods. We do this by reviewing the idea that they are an innovative built-environment genre that has spread globally from a diverse set of roots and influences. These include the mass growth of private urban government in the USA over the past 30 years; rising income inequalities and fear in big cities; the French condominium law of 1804; and many other locally and culturally specific features of urban history. We contrast the popular notion that gated communities are simply an American export with the idea that they have emerged in various forms for different reasons in different places. We contrast supply-side and demand-side explanations, focusing on the idea that much of their appeal comes from the club-economy dynamics that underpin them. We examine the social and systemic costs – territorial outcomes – of cities made up of residential clubs, considering, in particular, the issue of segregation. We conclude with a reflection on the importance of local variations in the conditions that foster or inhibit the growth of a gated community market in particular countries.
This chapter considers the role of economic and political institutions in the formation of local public policies. The chapter has three objectives. First, to synthesize the dominant models of local policy formation with mobile households, with particular emphasis on the objectives that are attributed to the institutions that provide collective goods. Second, to describe and model local political institutions, and consider their implications for taxes, expenditures and voting behavior. Third, to examine how institutional change, specifically the entry of new institutions in the form of private government, influences policy outcomes and the welfare of residents.
Site internet de la conférence / conference website : http://gated.parisgeo.cnrs.fr
Site internet du réseau de recherche international private urban governance : http://www.gated-communities.de
We examine how location in a gated community affects the value of a single-family home and the valuation of a beach. Using data on 2,358 sales on barrier islands near Charleston, South Carolina, the empirical results indicate that homeowners pay a premium of 18.6% for a property in a gated community. The value of location near a beach is greater in gated than nongated communities.
This paper analyzes the link between rising city crime rates and urban flight. Each additional reported crime is associated with a roughly one-person decline in city population. Almost all of the crime-related population decline is attributable to increased out-migration rather than a decrease in new arrivals. Households that leave the city because of crime are much more likely to remain within the Standard Metropolitan Statistical Area (SMSA) than those that leave the city for other reasons. Migration decisions of highly educated households and those with children are particularly responsive to changes in crime. Causality appears to run from rising crime rates to city depopulation. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog
The weighted repeat sales price index methodology recently reported in Case and Shiller [5][6] is applied to a dataset of over eight million loans bought by the Federal Home Loan Mortgage Corporation over the last twenty years. Regional price indices are reported and compared to indices from other sources. Statistical issues in the creation of the index, both technical and due to sample selectivity of the Freddie Mac dataset, are extensively discussed. It is found that the new index grows at a rate similar to other indices up until 1985, after which time it grows at a significantly higher rate. Copyright American Real Estate and Urban Economics Association.
Analysis of variations in house values among localities requires reliable house value indices. Gatzlaff and Haurin (1994) indicate that traditional hedonic house value index estimates, using only information from a sample of sold homes to estimate value movements for the entire housing stock, may be subject to substantial bias. This article extends previous work by adapting the censored sample procedure to the repeat-sales index estimation model. Using data from Dade County, Florida, a house value index constructed from a sample of homes selling more than once, rather than all houses in a locality, is found to be biased. The bias is shown to be highly correlated with changes in economic conditions. Copyright 1997 by Kluwer Academic Publishers
Polls identify crime as the number one public worry. Crime also exacts tremendous costs not factored into official measures of well-being, and it is a favorite subject of political campaign promises. However, the public seems largely unaware that crime responds to economic conditions and incentives and that the results of a substantial body of work by economists have important implications for public policy. ; This article introduces the economics and crime literature by describing a simple supply-and-demand crime model in which criminals supply crime, the public demands protection from crime, and the government provides public protection. The author uses the model to show how crime responds to a variety of demographic and economic factors and also what results to expect from public policy proposals. ; Using state data from 1971 to 1994, the article outlines broad regional differences and trends in the patterns of crime in the United States. While the nation in the 1990s has seen crime fall dramatically in almost all categories, not all regions have benefited equally. In particular, southeastern states have seen distinct worsening in crime rates relative to other regions. ; The author subjects the data to a more in-depth treatment using a panel regression approach that estimates the effects of demographic and economic variables on crime. The results mirror some found by others but also highlight serious issues vexing the empirical literature. Generally, the demographic and economic variables explain crime rather well, and estimates for the most part conform to the economic model of crime.
Defines an amenity as a location-specific good. Examples include air quality, views, local public services. Examines public good and private good characteristics of amenities and theoretical determinants of household demand for them. Offers an analysis of markets inamenities based on inference of amenity prices from other prices (eg land, houses). Outlines approaches to the analysis of residential location patterns and density in urban development. Also introduces considerations of regional location and migration. This chapter provides a conceptual basis for the topic material covered in succeeding sections.-A.L.Creese
Introduction and Historical PerspectiveTechnical Background
Experimental ExperienceSummary Interpretation, and Examples of Diagnosing Actual Data for CollinearityAppendix 3A: The Condition Number and InvertibilityAppendix 3B: Parameterization and ScalingAppendix 3C: The Weakness of Correlation Measures in Providing Diagnostic InformationAppendix 3D: The Harm Caused by Collinearity
The abstract for this document is available on CSA Illumina.To view the Abstract, click the Abstract button above the document title.
Quality differences make estimation of price indexes for real properties difficult, but these can be largely avoided by basing an index on sales prices of the same property at different times. The problem of combining price relatives of repeat sales of properties to obtain a price index can be converted into a regression problem, and standard techniques of regression analysis can be used to estimate the index. This method of estimation is more efficient than others for combining price relatives in that it utilizes information about the price index for earlier periods contained in sales prices in later periods. Standard errors of the estimated index numbers can be readily computed using the regression method, and it permits certain effects on the value of real properties to be eliminated from the index.
A wide variety of research has been developed around the estimation of economic depreciation rates on single-family houses. One aspect that has not been fully investigated in the literature has been the effects of tenure status on depreciation in housing. Tenants face different incentives than owner-occupants with respect to care for property, and we know little about landlord response to this difference and landlord behavior in general. This paper examines the extent to which the type of occupancy—tenant versus owner-occupant—influences the net (of maintenance) depreciation of single-family houses. The paper finds that tenant-occupied single-family dwellings depreciate faster than owner-occupied units, holding all else constant.
This study is the first to lend empirical support to the common belief that traffic intensity affects property values. Using a standard hedonic pricing model, this paper investigates the price effects on housing of traffic within a neighborhood. Results using data on single-family housing transactions for two different locations in a medium-sized city show a substantial negative price effect of traffic externalities. The magnitude of the effect is shown to be location specific.
G. C. Haas produced a hedonic study more than 15 years prior to A. T. Court who first published the term hedonics. Haas's application was to agricultural land prices with a particular focus on distance to the city center and city size. Thus, Haas's work has much of the flavor of contemporary urban economics. A reestimation of Haas's model reveals that he did a respectable job in an age before computational machinery was available. The estimation of a new model reveals a tiny value gradient and shows that some of Haas's adjustments to price, especially his time adjustments, were amazingly accurate.
This paper reports estimates of metropolitan area specific rates of economic depreciation for residential real estate obtained using the hedonic pricing methodology. Separate hedonic equations were estimated for owner-occupied and renter-occupied properties for each of 59 metropolitan areas. -from Authors
The accurate measurement of housing and real estate prices is of real theoretical importance and is crucial to understanding the operation of the housing market. Two basic techniques - hedonic and repeat sales methods - for measuring and analyzing the structure of housing prices have been developed. This paper presents an explicit model for combining samples of single sales and multipule sales for the analysis of housing prices and the computation of more efficient price indices. The procedure is based upon an explicit error structure, incorporating a random walk in housing prices. It is also based upon robust generalized least-squares methods to improve the efficiency of estimation. The technique is illustrated using a unique sample of condominium sales during a 12-year period in downtown Los Angeles.
This paper analyzes gated communities in a geographic model of crime. There are four major results. First, gating always diverts crime to other communities but has an overall deterrent effect on crime as long as it does not impact legitimate employment opportunities. Second, gating expenditures may be strategic substitutes or strategic complements. The latter possibility may help explain why gated communities appear to spread like a contagion. Third, the Nash equilibrium level of gating expenditures is inefficiently large. Fourth, gating may actually increase the overall level of crime if it either affects employment opportunities or it influences the selection among multiple equilibrium crime rates.
The evaluation of numerous school reforms requires an understanding of the value of better schools. Given the difficulty of calculating the relationship between school quality and student outcomes, I turn to another method and use house prices to infer ...
Several studies of housing price trends recommend combining statistical analysis to repeat sales of residential properties. Recently, price indices derived from these techniques have formed the basis for inferences about the "efficiency" of housing markets. This paper presents an improved methodology which combines inflation on repeat sales of unchanged properties, on repeat sales of improved properties, and on single sales, all in one joint estimation. Empirical evidence, based upon a rich sample of transactions on single family houses in a single neighborhood, indicates the clear advantages of the proposed methodology, at least in one typical application. Copyright 1991 by MIT Press.
In this paper we estimate the price premium associated with organic baby food by applying a hedonic model to price and characteristic data for baby food products collected in two cities: Raleigh/Durham, North Carolina and San Jose, California. We use price per jar of baby food as the dependent variable and control for a number of baby food characteristics (e.g., brand, type, and stage) as well as store characteristics (e.g. type of retail establishment). We find the price premium associated with the organic characteristic to be approximately 12 cents per jar. To the extent this premium reflects parents’ preferences regarding the reduction of their baby’s exposure to pesticide residues, our results could be paired up with risk data to estimate the value of the health benefits associated with reduced exposure.
The evaluation of numerous school reforms requires an understanding of the value of better schools. Given the difficulty of
calculating the relationship between school quality and student outcomes, I turn to another method and use house prices to
infer the value parents place on school quality. I look within school districts at houses located on attendance district boundaries;
houses then differ only by the elementary school the child attends. I thereby effectively remove the variation in neighborhoods,
taxes, and school spending. I find that parents are willing to pay 2.5 percent more for a 5 percent increase in test scores.
This finding is robust to a number of sensitivity checks.
This study assesses the impact of new urbanism on single-family home prices. Specifically, we use Duany and Plater-Zyberk's traditional neighborhood development (TND) of Kentlands and surrounding conventional subdivisions to estimate the premium, if any, that single-family homeowners are willing to pay to reside in a community with new urbanist features. Using data on 2,061 single-family home transactions and several hedonic price models, the empirical evidence reveals that consumers are willing to pay a premium to locate in Kentlands. Copyright American Real Estate and Urban Economics Association.
This paper makes a preliminary attempt to evaluate empirically the nature of the contribution of architectural quality to the value of buildings. An economic model is postulated that predicts equilibrium rent and vacancy behavior as a function of both design and non-design characteristics. Vacancies are created in equilibrium as a result of search and information costs and tenant heterogeneity and are observed by the landlord as price-inelastic demand behavior. Design quality is seen to influence both rent and vacancy behavior. Its effect, however, is dependent on characteristics both of the production and operating cost functions and of tenant demand for the design vs. non-design amenity. An important characteristic of the design amenity is that it is not, in general, independent of the production function for non-design amenities. The model is tested using disaggregate cross-sectional and longitudinal operating performance and amenity data from a set of 102 class A office buildings in Boston and Cambridge. Data on design quality for the set of buildings were provided by a detailed evaluation of each structure by a panel of architects. Results confirm a strong influence of design on rents; structures rated in the top 20% for design quality were predicted to extract almost 22% higher rents than those rated in the bottom 20%. In contrast, the data showed a weak relationship between vacancy behavior and design quality. Finally, good design was shown to cost more to produce on average, but not necessarily in every case. The magnitude of the point estimates of the rent, vacancy, and construction cost effects suggest that good design may not in fact be more profitable on average, but as with a lottery, may provide a small probability of a high return to the developer. Copyright American Real Estate and Urban Economics Association.
PIP
The central thesis of this paper is that the prices people pay for housing can be used to determine whether the movement of population to the suburbs is caused primarily by attraction to suburban advantages or by the desire to escape deteriorating conditions in the central city. Estimates of the coefficients indicating the price of central city versus suburban housing in the United States are presented and analyzed using a regression model.
The tradeoff between risk and return in equity markets is well established. This paper examines the existence of the same tradeoff in the single-family housing market. For home buyers, who constitute about two-thirds of U.S. households, the choice about how much housing and which house to buy is a joint consumption/investment decision. Does this consumption/investment link negate the risk/return tradeoff within the single-family hosuing market? Theory suggests the link still holds. This paper supplies empirical evidence in support of that theoretical result.
Tests of the efficiency of single family home prices are performed using repeat sales prices of 39,210 individual homes in Atlanta, Chicago, Dallas, and San Francisco/Oakland for 1970-86. The market does not appear to be efficient. Year-to-year changes in prices tend to be followed by changes in the same direction in the subsequent year. Moreover, information about real interest rates does not appear to be incorporated in prices. There is, thus, a profitable trading rule for persons who are free to time the purchase of their homes. Still, overall, individual housing price changes are not very forecastable. Copyright 1989 by American Economic Association.
This note provides evidence on the amount people are willing to pay for crime control. The theory of hedonic price indexes is used to derive estimates from property values. The results are consistent with both theory and intuition.
Although popularized by Griliches in the early 1960s, the pioneering hedonic price analysis dates back to a 1939 article by Andrew Court which receives, at best, only perfunctory citations. This article revisits and extends Court's 1939 analysis. By many standards of contemporary hedonic price analysis, Court's work stands up quite well. It addresses problems of nonlinearity and changes in underlying goods, with circumspect analysis and interpretation. The article evaluates Court's work, extends his analyses using data from his unpublished papers, and conjectures as to why the hedonic price method was unused for so many years.
We investigate the salary returns to the ability to play football with both feet. The majority of footballers are predominantly right footed. Using two data sets, a cross-section of footballers in the five main European leagues and a panel of players in the German Bundesliga, we find robust evidence of a substantial salary premium for two-footed ability, even after controlling for available player performance measures. We assess how this premium varies across the salary distribution and by player position.
Urban Decline and the Future of American Cities The Brookings Institution The Dynamics of Real Estate Prices
- K L Bradbury
- A Downs
- K A Washington
K.L. Bradbury, A. Downs and K.A. Small, “Urban Decline and the Future of American Cities,” Washington, D.C.: The Brookings Institution (1982). B. Case and J.M. Quigley, The Dynamics of Real Estate Prices. Review of Economics and Statistics, 22(1), 50-8 (1991)
A New Physical Planning Tool for Urban Revitalization A Simple Hybrid Model for Estimating Real Estate Price Indexes
- O Newman
- Space
O. Newman, Defensible Space: A New Physical Planning Tool for Urban Revitalization. Journal of the American Planning Association 61, 149-155 (1995). J.M. Quigley, A Simple Hybrid Model for Estimating Real Estate Price Indexes. Journal of Housing Economics, 4(1), 1-12 (1995)
Repeat Sales Methodology for Price Trend Estimation: An Evaluation of Sample Selectivity
- J M Clapp
- C Giaccotto
J.M. Clapp and C. Giaccotto, Repeat Sales Methodology for Price Trend Estimation: An
Evaluation of Sample Selectivity, Journal of Real Estate Finance and Economics, 5,
357-74 (1992).
University Hills: A Brief History of Its Planning and Development
- E Hamilton
E. Hamilton, " University Hills: A Brief History of Its Planning and Development. "
University City, MO: The Historical Society of University City (1990).
University City Landmarks and Historic Places
- J Little
- E Hamilton
J. Little and E. Hamilton, " University City Landmarks and Historic Places, " University
City, MO: City of University City (1997).
Bounded Influence Estimation Evaluation of Econometric Models
- R Welsch
R. Welsch, Bounded Influence Estimation, in J. Kmenta and J. Ramsey (eds.),
" Evaluation of Econometric Models, " New York: Academic Press (1980).
Where We Live: A Guide to St. Louis Communities
- T Fox
T. Fox, " Where We Live: A Guide to St. Louis Communities, " St. Louis, MO: Missouri
Historical Society Press (1995).