What Is a Gated Community?

A gated community is a private residential neighborhood that’s separated from the surrounding areas using gates and fences. Gated communities offer privacy and security, since only residents and invited guests are allowed to enter.

There are pros and cons of living in a gated community. For example, gated communities often include amenities like pools, parks, playgrounds, fitness centers, golf courses, tennis courts, and hiking trails. However, you’ll likely belong to a homeowners association, and you may be subject to HOA rules and restrictions.

Here’s what you need to know about gated communities before purchasing in one.

History of Gated Communities

Gated communities have existed in some form for thousands of years. Ancient civilizations built walls, gates, and other barriers to keep unwanted guests from entering their communities. The first known gated communities in North and South America were fort towns built in the Caribbean by Spanish colonizers.

By the mid-to-late-19th century, wealthy homeowners in places like New York City and St. Louis began building gated communities. They grew in popularity during the 1960s and 1970s, as middle-class families and retirees became drawn to gated communities for their security and amenities.

By the turn of the millennium, there were as many as 20,000 gated communities with roughly 3 million homes.

What’s Included in a Gated Community?

Every gated community is different. Here are some amenities that you might find in a gated community, and others that likely won’t be included:

How To Buy a Home in a Gated Community

The first step of buying a home in a gated community is finding one you want to live in. If you don’t know of any gated communities in your area, you can work with a specialized real estate agent.

You also could get a head start by doing some research yourself. Searching for gated communities on real estate platforms like Zillow or Trulia will help you understand the options and price ranges.

If you’re ready to buy, you should get preapproved for a mortgage and start touring homes.

Financing options

Homes in gated communities can be more expensive than in traditional neighborhoods. You may even need a jumbo loan once you’ve factored in higher home prices.

Don’t forget about HOA fees, which are often higher in gated communities. They can be as much as $700 a month, although roughly $200 a month is average. If your monthly HOA fees are $200, you’ll pay $72,000 in dues over the course of a 30-year fixed-rate mortgage.

You can use a mortgage calculator to estimate how much you’ll have to pay each month to live in a gated community.

FAQ

Here are the answers to some frequently asked questions about gated communities.

Are home values higher in gated communities?

Being located in a gated community can add an average of roughly $30,000 to the value of a home, according to a 2016 study published in the Journal of Real Estate Research.

Who owns a gated community?

Gated communities are built by developers and run by homeowners associations, which set rules and provide services in exchange for HOA fees.

Can delivery drivers access gated communities?

Living in a gated community can make it more difficult to receive deliveries. Some gated communities might require you to notify security to let delivery drivers in. Other gated communities have access codes, but if the system is down, you might have to meet delivery drivers at the entrance to the community.