Residential politics: How democracy erodes community

Abstract

Residential subdivisions governed democratically by homeowners’ associations often fall short of their residents’ expectations. The fault may lie in the developers’ practice of subdividing rather than leasing residential land. Given the widespread success of land leasing in commercial real estate, subdividing residential land seems anomalous, and may be explained by a variety of public policies enacted since World War II that have constrained developers to subdivide rather than lease land for residential purposes. By promoting subdivision, these policies have subjected homeowners to the obsessive rule making, conflict, and counterproductive decision making that characterize democratic institutions. Entrepreneurial management, on the other hand, as practiced in multi‐tenant commercial properties, has the potential of promoting true residential “community.”

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