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Moving Up by Moving Out? Planned Developments and Residential Segregation in California

Public Policy Institute of California, 500 Washington Street, Suite 800, San Francisco, CA 94111, USA, Gordon{at}ppic.org

Individuals are increasingly opting to live in common interest developments (CIDs) such as condominiums, co-operatives and planned developments. Several commentators have linked this trend to increasing neighbourhood homogeneity and residential segregation. This paper investigates these claims for planned developments in California in 1990. Results indicate that planned developments are, on average, less diverse with respect to race but more diverse with respect to income due to greater representation among higher-income categories. The contribution of planned developments to overall metropolitan segregation, however, is minor. This finding is perhaps unsurprising in light of the relatively small proportion of the population living in planned developments as of 1990. As recent trends continue, it is conceivable that the effects of these communities on residential segregation will become more pronounced. Nevertheless, eliminating planned developments would not necessarily diminish segregation because these communities are but one mechanism for sorting behaviour.

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