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Planning Through Residential Clubs: Homeowners’ Associations

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  • Evan McKenzie

Abstract

Private homeowners’ associations now govern over 18% of the American population, enforcing contractual land‐use restrictions and providing what would otherwise be municipal services. The rapid spread of these associations in new housing construction is explained by rising land costs, constraints on the ability of local governments to raise property taxes, and consumer preferences. Because these associations resemble club economies in significant respects, they provide an opportunity to test whether these private associations can provide services more efficiently than municipalities. Departures from the assumptions of the club economy model are noted, including the lack of options for consumer choice that undermine the consent‐based rationale.

Suggested Citation

  • Evan McKenzie, 2005. "Planning Through Residential Clubs: Homeowners’ Associations," Economic Affairs, Wiley Blackwell, vol. 25(4), pages 28-31, December.
    • Handle: RePEc:bla:ecaffa:v:25:y:2005:i:4:p:28-31
    DOI: 10.1111/j.1468-0270.2005.00586.x
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    References listed on IDEAS

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    1. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64(5), pages 416-416.
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    Cited by:

    1. James Wesley Burnett & Christopher Mothorpe, 2018. "An Economic Assessment of the Southern Atlantic Coastal Region’s Stormwater Management Practices," Water Economics and Policy (WEP), World Scientific Publishing Co. Pte. Ltd., vol. 4(04), pages 1-38, October.
    2. Ron Cheung & Rachel Meltzer, 2013. "Homeowners Associations And The Demand For Local Land Use Regulation," Journal of Regional Science, Wiley Blackwell, vol. 53(3), pages 511-534, August.
    3. Ben L. Kyer & Gary E. Maggs, 2022. "Club Formation and Response To Natural Disaster: An Example From South Carolina," The American Economist, Sage Publications, vol. 67(1), pages 99-105, March.
    4. Eric Charmes, 2009. "On the Residential `Clubbisation' of French Periurban Municipalities," Urban Studies, Urban Studies Journal Limited, vol. 46(1), pages 189-212, January.

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