The luster seems to have come off of gated communities: not only is the market for them shrinking, but they are facing rates of crime and foreclosure no different from other forms of development.
"[G]ated communities are no less crime-prone than open ones, and Gopal Ahluwalia, senior vice president of research at the National Association of Home Builders, confirms this: There are studies indicating that there are no differences in the crime in gated communities and non-gated communities. The security guards often wave people on in, especially if they look like they're on a legitimate mission -- such as the faux moving truck that entered a Fort Meyers' gated community last spring and left with a houseful of furniture. Or the crime comes from within, as in the Hilton Head Plantation community in South Carolina where a rash of crime committed by resident teenagers has led to the imposition of a curfew."
"Most recently, America's gated communities have been blighted by foreclosures. Yes, even people who were able to put together the down payment on a half-million dollar house can be ambushed by Adjustable Rate Mortgages. Newsweek reports that foreclosures are devastating the gated community of Black Mountain Vista in Henderson NV, where "yellow patches [now] blot the spartan lawns and phone books lie on front porches, their covers bleached from weeks under the desert sun." Similarly, according to the Orlando Sentinel, "countless homeowners overwhelmed by their mortgages are taking off and leaving behind algae-filled swimming pools and knee-high weeds" in one local gated community."
"So, for people who sought, not just prosperity, but perfection, here's another sad end to the American dream, or at least their ethnically cleansed version thereof: boarded-up McMansions, plastic baggies scudding over overgrown lawns, and, in the Orlando case, a foreclosure-induced infestation of snakes. You can turn away the Mexicans, the African-Americans, the teenagers and other suspect groups, but there's no fence high enough to keep out the repo man."
FULL STORY: What's So Great About Gated Communities?

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