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Lifestyle Neighborhoods: the Semi-Exclusive World of Rental Gated Communities

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Lifestyle Neighborhoods: the Semi-Exclusive World of Rental Gated Communities Lifestyle Neighborhoods: The Semi-Exclusive World of Rental Gated Communities Karen A. Danielsen-Lang Dissertation submitted to the faculty of the Virginia Polytechnic Institute and State University in partial fulfillment of the requirements for the degree of Doctor of Philosophy In Environmental Design and Planning Doctoral Committee: Thomas W. Sanchez, University of Utah, Committee Chair Arthur C. Nelson, Virginia Tech Paul L. Knox, Virginia Tech Edward J. Blakely, University of Sydney, Australia Karen A. Danielsen Department of Urban Affairs and Planning Virginia Tech 1021 Prince St. Suite 200 Alexandria, VA 22314 [email protected] Defense Date: April 14, 2008 Keywords: Gated Communities, Rental Housing, Segregation This research was prepared in part under Grant Number H-21469 SG from the Department of Housing and Urban Development, Office of University Partnerships. Points of view or opinions in this document are those of the author and do not necessarily represent the official position or policies of the Department of Housing and Urban Development. Copyright © Karen Danielsen 2008 Lifestyle Neighborhoods: The Semi-Exclusive World of Rental Gated Communities Karen A. Danielsen-Lang ABSTRACT 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. i Table of Contents Abstract ....................................................................................................i Table of Tables........................................................................................iii Preface ....................................................................................................iv Acknowledgements ..................................................................................v Chapter 1 Introduction..............................................................................................1 Chapter 2 How the Other Half Lives: Overview of National Trends in Rental Gated Communities.......................................................................7 Chapter 3 Case Study: Characteristics of Rental Gated Communities in the Inland Empire, Phoenix and Las Vegas .................................................32 Chapter 4 The Positive Functions of Gated Communities?: Theoretical Deliberations on the Purpose of Gated Communities in Modern Life......51 Chapter 5 Gated Communities and the Community Question: Community Lost or Gained?...................................................................85 Chapter 6 The Persistence of Segregation in Gated Communities: Measuring Diversity in Rental Gated Communities ..............................102 Chapter 7 Conclusions and Policy Implications.....................................................116 References............................................................................................125 Appendix A..........................................................................................159 Appendix B..........................................................................................170 ii Table of Tables 2-1 Glendale Arizona Police Calls for Service First and Second Quarter 2005 .........12 2-2 Tenure Differences between Common Interest Developments (CID) and Rental Gated Communities ................................................................................18 2-3 Age of Rental Gated Communities.....................................................................19 2-4 Gated Communities by Tenure and Race/Ethnicity ...........................................22 2-5 Percent Households in Enclosed Subsidized Housing Communities ...................24 2-6 Demographic Characteristics of Gated Subsidized Housing ...............................24 2-7 Percent Households in Gated Rentals in Top 10 Metropolitan Areas ..................25 2-8 Apartment Units Converted to Condos and Vacancy Rates ................................29 2-9 New Privately Owned Housing Units Started by Purpose...................................31 3-1A Population Change 1990-2000 ...........................................................................33 3-1B Population Change 1990-2005 ...........................................................................33 3-2 Distribution of Gated and NonGated Properties in Study Area ...........................36 3-3 Households in Gated Communities in Study Areas ............................................36 3-4 Comparison between the Rental Gated Community Database and American Housing Survey .................................................................................37 3-5 Study Census Tracts...........................................................................................38 3-6 Rent in Gated and Non Gated Rental Communities (in dollars)..........................39 3-7 Estimated Annual Income Need to Qualify for Gated and Non Gated Properties 40 3-8 Year Property Operational—Measures of Central Tendency ..............................41 3-9 Year Properties Operational 5 Year Intervals .....................................................43 3-10 Year Properties Operational by Decade..............................................................43 3-11 Property Management........................................................................................44 3-12 Percent Gated and NonGated Properties by Property Management Type............45 3-13 Properties that Market to Hispanics....................................................................46 3-14 Types of Security on Gated Properties ...............................................................48 3-15 Gated and Nongated Rentals with at Least One Subsidy by County ...................49 4-1 The Positive Economic Functions of Gated Communities ..................................58 4-2 The Positive Socio/Cultural Functions of Gated Communities ...........................69 4-3 The Positive Political/Policy/Governance Functions of Gated Communities ......76 5-1 The Functions of Conflict ..................................................................................95 6-1 Phoenix Metropolitan Area Dissimilarity Index by City and Suburbs 1990 and 2000 .................................................................................................104 6-2 Variables used to compute Simpson D .............................................................108 6-3 Percent White Population in Study Area Census Tracts ...................................109 6-4 Number of Study Area’s Census Tracts Race/Ethnicity Simpson’s D Scores by Gated and Non Gated Apartments ...............................................................111 6-5 Percent of Study Area’s Census Tracts by Simpson D Scores for Race/Ethnicity by Gated and Non Gated Apartments ...............................................................112 6-6 Number of Census Tracts with Gated and Non Gated Apartments by Simpson D Scores for Income Diversity......................................................113 6-7 Results of Ordinary Least Squares Regression .................................................115 iii Preface There have been several books and dissertations written about gated communities since the mid 1990s. Thus, it is fair to question what the need is for yet another study on the subject. The simple answer is that researchers on this topic focus primarily on the owned gated community sector rather than exploring whether there are in fact rental versions of these properties and if there is anything different about them. But I am not too sure that many people, including researchers, recognized that developers were even building rental gated communities in any great numbers. I, too, am guilty of not being particularly aware of these types of properties. Earlier in my career as director of housing policy and practice at the Urban Land Institute (about 10 years ago), I remember one of the multifamily developers telling me that they were in the process of building a gated master planned rental community in Rancho Cucamonga California. While I thought it was an intriguing idea, it struck me as something that was unique and not particularly commonplace. In addition, the international literature on gated communities makes passing reference to a very small number (maybe 1 or 2 properties) rental gated communities but lumped them together rather than determining whether this was widespread or again a small proportion of the rental stock. The 2001 American Housing Survey (AHS) changed all this because the survey asked questions about gates and walls for the first time. The AHS made
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