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The Improving State of Gated Community Clubs: What’s Going on Behind the Gates?

Gated community clubs are rebounding, reports a recent survey by the McMahon Group. Real estate sales are up in 81 percent of surveyed gated community clubs by an average of 12 percent from last year, indicating a stronger position for these clubs than in recent years. Eighty-four percent of managers said conditions in their real estate marketplaces were either good or excellent. Overall, member activity is up due to growing real estate sales, improved perceptions of the club’s and the community’s value, and upgraded facilities.

One explanation for improving conditions may be found in these clubs’ governing styles, which pay attention to their members’ needs and focus on the future. Ninety-one percent of responding clubs have surveyed their members in the past four years and 87 percent have strategic plans.

Other survey findings show 59 percent of gated community clubs have a mandatory membership policy for residents, but just 42 percent of residents live at the club throughout the year. For clubs without such policy, 67 percent of community residents are members of the club. Interestingly, 66 percent have spa facilities, which is a higher percentage than clubs with 18-hole golf courses at just 63 percent. Seventy-one percent of these clubs make use of a dining minimum.

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