Is Living in a Gated Community Worth It?

There are many gated communities across the United States that control access. If you are considering buying a new house in one of these areas, you need to take the time to consider whether doing so is really a smart financial move. And, there's more to this than you might think.

Before you get a mortgage and rush out to buy your dream home in a gated neighborhood, take the time to think of these issues.

A gated community could increase the cost of your home

There's no doubt that buying a house in a gated community is going to cost more. In fact, prices average around $30,000 more for houses in gated neighborhoods compared with properties in other locales that aren't secured.

Of course, while you are going to have to pay a higher price for your property, you should also be able to sell it for more money than you would if you lived elsewhere. So, you may be able to recoup the added costs -- if you're planning on moving. If you want to stay put for a long time, you'll be incurring added expenses that could cause financial stress and won't reap the resulting benefits of increased property value for years to come.

There's also a question of whether other issues could end up dragging sale prices down. Specifically, with gated communities often requiring high fees for amenities such as pools and tennis courts, it's possible the added costs of these features will reduce the price you'd get on your property. In fact, one study found that while gates increased the value of properties, amenities within gated neighborhoods ended up reducing sale prices by around $19,500 thanks to the huge maintenance and upkeep costs.

So, you'll need to research property values carefully in gated versus non-gated communities with differing levels of amenities in order to find out if you'll actually be paying a higher price or fetching a larger sum for your home.

A gated community can come with amenities -- and costs associated with them

One of the biggest benefits of living in a gated community is the amenities that these types of neighborhoods often offer.

At a minimum, of course, you will have the gates that can help keep people out. But as mentioned above, you may also get pools, tennis courts, playgrounds, golf courses, community activities, pickleball and tennis courts, and more.

While it can be really nice to have these things, there's also an expense associated with their upkeep. You'll need to be able to work that into your monthly budget and OK with paying it. You'll also need to remember, as mentioned above, that high monthly association fees could scare off some buyers.

Consider whether you'll actually use the amenities often enough to justify paying the association fees for them. If not, you may want to pick a different community without the gates and the perks, but also with lower costs.

A gated community can come with rules and restrictions

Finally, a gated community comes with rules and restrictions in most cases. You may be required to get approval to change your home and may need to do things like mow your lawn regularly and keep your garage doors closed. You may also not be allowed to have boats, RVs, or commercial vehicles in your driveway.

Some people like these rules and may find living in a gated community with these regulations is good because it maintains their desired neighborhood look and helps keep up property values. But, if you don't want to deal with them, then this is a big negative that should cause you to steer clear of a gated neighborhood.

By considering these key issues, you can make an informed choice about whether living in a gated community is worth it to you. Be prepared to pay more upfront and more each month, and to deal with the rules -- but also to get a home valued higher, access to fun amenities, and a safer and more secure place to live.