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Gated communities-enclaves of homes surrounded by walls, often with security guards-are becoming increasingly popular in America. This article introduces and analyzes findings of a Fannie Mae Foundation-sponsored panel on gated communities held at the 1997 Association of Collegiate Schools of Planning annual conference. A key finding is that many people choose to reside in gated communities because they believe that such places reduce risk, ranging from the mundane (e.g., unwanted social exchanges) to the high stakes (e.g., declining home values).In many ways, gated communities deliver what they promise, by providing an effective defense against daily intrusions. However, some of their benefits entail a high social cost. A sense of community within gated communities comes at the expense of a larger identity with the region outside. Gated communities manifest and reinforce an inward-focused community culture, where the tension between the individual and society tilt toward self-interest.

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The current literature on gated communities characterizes residents as fearful, wealthy, white homeowners. Thus, researchers using recent American Housing Survey (AHS) data were surprised to find that many residents of gated communities live in apartments and that residents of walled or fenced communities were actually more likely to be renters than owners.This article uses the AHS to explore the characteristics of residents of rental gated communities (the other half). Factors leading to the growth of gated communities in general and gated apartments in particular are considered. Owned and rental gated communities are compared as a first step in defining the differences between these kinds of tenure, and existing research on subsidized gated housing is updated using descriptive and trend data. The housing opportunities and restraints that rental gated communities create for minorities are analyzed, and policy implications for the growth of rental gated communities are discussed.