A planned community is a housing development where the homes, roads, stores and other features are carefully designed and orchestrated to make living there as convenient and enjoyable as can be.
For instance: Shopping centers may be deliberately situated within walking distance of planned community homes, which are typically attached—condos, townhouses, apartments—to make travel by foot manageable. Trees and flowers are planted alongside most streets, along with hiking/biking trails. High-speed commuter rails whisk workers to nearby urban centers for their 9-to-5 jobs. There may even be village-wide Wi-Fi, to boot.
Contrast this with the ad hoc way communities are usually built: In many cases, a developer just plunks down row housing on a parcel of land nowhere near commercial districts, which means you’ll have to always grab your car keys for a carton of milk. Sometimes, luck or some modicum of forethought helps these neighborhoods turn out OK, but planned communities, by contrast, put plenty of, well, actual planning into that whole process.
History of planned communities
The first planned community in the United States—Riverside, just outside Chicago—was built in 1869 by Frederick Law Olmsted and Calvert Vaux, who designed New York City’s Central Park. Riverside, with its curved streets, ample greenery, and homes set at least 30 feet from the road, remains a beautiful and affluent community today, with a population of approximately 8,800. Large portions have even been designated National Historic Landmarks.
In the wake of Riverside’s success, hundreds of planned communities have taken root throughout the country, especially in California, Florida, Texas, and the Intermountain West. While most may encompass anywhere from a few acres to several hundred, an offshoot called “master-planned communities” scale up the concept much larger. For instance, one of the biggest, Irvine Ranch, CA, is made up of 24 interconnected “villages” spanning 93,000 acres of Pacific coastline.
Some planned communities are designed to appeal to specific interests or lifestyles, like equestrian or active living. Siena in Round Rock, TX, for instance, boasts hiking and biking trails galore, two parks, and a communal swimming pool. Meanwhile, Bald Head Island, NC, is an idyllic seaside community that includes a rare maritime forest, marshlands, and yacht club. Still others feature water parks for kids, velodromes for avid cyclists, and yes, even 377-foot zip lines for adrenaline junkies.
Planned communities are also particularly attractive for retirees. The Villages, outside Orlando, FL, is probably the most famous planned retirement community, which began when a developer sold land tracts by mail order in the 1960s. Today, this community boasts a population of 157,000, with a median age of 66, who get to while away retirement in the community’s many shopping and recreational facilities. This includes “free golf for life” on 48 courses (totaling 621 holes!).
Benefits of planned communities
There’s a good reason why planned communities and their master-planned cousins have become a hot real estate trend that many hope to buy into. Here’s what’s drawing homeowners.
- Less traffic. Because the planning includes roadways, traffic flows more smoothly. Often there are more, and higher quality, public transportation options.
- The amenities. Now you can be that person who swims laps in the community pool or goes for a run along a wooded trail every morning.
- Green spaces. Planned communities place a premium on surrounding residents in natural beauty and gorgeous landscaping.
- A sense of community. From well-lit streets to old-timey front porches to community gathering spaces, planned communities enable you to get to know your neighbors and actually do stuff with them, rather than simply nodding at each other awkwardly as you each climb into your respective minivans.
Downsides of planned communities
And yet, planned communities aren’t for everyone. Here are some disadvantages to consider.
- Dealing with a Community Development District. Many of these communities are managed by Community Development Districts, which are much like homeowners associations (HOAs) but might have even more rules on what their residents can and can’t do. If you dislike that level of micromanaging, a planned community may drive you nuts.
- Additional fees. Someone has to keep these communities in top shape, and unless it’s a cooperative type of community where residents pitch in, you will likely have to pay a monthly fee that’s often higher than a typical HOA’s, to pay for upkeep. According to real estate consultant John Burns, the typical premium in housing costs for a planned community is 6%. About 2% of that is for the property itself—that house will cost a tiny bit more than a comparable house outside a planned community. The other 4% is in monthly fees. So when you buy your home, you’ll need to factor in that cost.
- Less privacy. There is often less privacy in planned communities than in a more typical suburban development. This may be due to the fact that the houses are closer together, or to the more communal atmosphere. If you prefer to keep to yourself, then this may get on your nerves.
In sum, planned communities are ideal for active, outdoorsy, and social people. Sounds like you? Then ask your real estate agent to show you homes in planned communities near you.
