Zoning laws, which were originally created as a way to regulate land use and density in different areas, have developed into an overwhelming impediment for communities to be able to grow and develop.[i] Restrictive land use regulations have been linked to higher housing prices, reduced construction activity, and a decrease in the supply of available housing.[ii] Historically, land use and zoning laws have been used to boost property values, decrease property taxes, and many times to reduce non-white people’s ability to own a home. In other words, land use and zoning practice has typically been a way of maintaining a separation among people.
Between 1900 and 1940, racial and economic segregation increased by 50%.[iii] During this same time period, most cities in America were adopting land use and zoning laws. Specifically, the case of Euclid v. Ambler allowed government officials to legally segregate people based on race or class.[iv] In the Euclid case, the Ambler Realty Company owned 68 acres of land in the village of Euclid, Ohio, a suburb of Cleveland.[v] The village council passed a zoning ordinance dividing the village into several districts.[vi] This ordinance defined the use and size of buildings permissible in each district.[vii] Ambler Realty’s land spanned multiple districts, and the company was, therefore, significantly restricted in the types of buildings it could construct on the land.[viii] Ambler Realty filed suit against the village, claiming the ordinance violated the Fourteenth Amendment’s protections of liberty and property described in the Due Process and Equal Protection Clauses.[ix] A federal district court agreed and issued an injunction against the enforcement of the ordinance.[x] Applying a deferential standard of review, as the Supreme Court of the United States typically applies to constitutional challenges to economic regulations, the Court held the ordinance did not exceed the local government’s police power.[xi] Zoning regulations, the Court explained, will generally be upheld as long as there is some connection to the public welfare.[xii]
In other words, Euclid established the precedent that as long as there is even a minimal connection to public welfare, a zoning law will be upheld, allowing for cities to legally segregate or gentrify an area of their choosing. One of the most popular ways of doing this was through the “single-family” zoning. Single-family zoning allows only single-family detached homes to be built and forbids multifamily residential housing, such as duplexes or condominiums, which are common in more densely constructed areas.[xiii] In combination with other practices, such as restrictive covenants and redlining, single-family zoning has excluded minorities from prosperous neighborhoods. When looking at the effects of single-family housing, it is evident that it has kept minorities away from wealth because two-thirds of the wealth in America is connected to housing.[xiv]
Putting access to wealth aside, housing affordability, in general, has been a significant issue for both homeowners and renters. The U.S. National Home Price Index rose 34% between 2020 and 2022.[xv] In 2023, just 15.5% of homes for sale were affordable, meaning that mortgage payments represented more than 30% of the average monthly household income for 84.5% of households buying a home.[xvi] The rental market is just as challenging, seeing as the average monthly rent has increased by over 30%.[xvii] Zoning regulations and the widespread adoption of single-family ordinances highlight the pervasive nature of zoning constraints hindering housing affordability initiatives. Specifically, these ordinances have made many areas into low-density zones, thus creating a smaller supply when there is a much larger demand. By curbing supply amid rising demand, these regulations inadvertently drive-up property values and rental prices, worsening the affordable housing shortage.
Research has shown a strong correlation between restrictive zoning and reduced housing supply, leading to higher home and land values. In California, most municipalities allocate more land for single-family units than for apartments, further constraining housing options.[xviii] Land use and zoning further influence land and home values by dividing land into distinct districts, each designated for specific uses.[xix] This then limits the number of parcels available for residential development that could alleviate housing shortages. Moreover, severe building requirements, such as mandatory parking minimums, add complexity to the housing cost equation, increasing construction expenses and, consequently, housing prices.
Regardless of how negative land use and zoning practice may sound, it also has its positives, which ultimately make it necessary for cities to flow and function properly. Thanks to land use and zoning practice, traffic can be limited in many areas, and specific wildlife areas, like the Everglades, can be protected from urban sprawl. Further, land use planning directly impacts the environment as it may limit climate change if used properly. All in all, land use and zoning can be extremely beneficial to society when used properly instead of for monetary gain which is how it is currently being used. The day land use and zoning practice is used in a way that can benefit society; it is more likely than not that most of the population will be able to own a home and continue to thrive instead of feeling like buying a home is the end all be all of their economic wellness.
[i] See Allison Hanley, Rethinking Zoning to Increase Affordable Housing, NAHRO (Dec. 22, 2023), https://www.nahro.org/journal_article/rethinking-zoning-to-increase-affordable-housing.
[ii] See id.
[iii] See id.
[iv] See Village of Euclid v. Ambler Realty Company, 272 US 365 (1926).
[v] See id.
[vi] See id.
[vii] See id.
[viii] See id.
[ix] See Village of Euclid, 272 US at 365.
[x] See id.
[xi] See id.
[xii] See id.
[xiii] See Daniel Thomas Mollenkamp, Single-Family Zoning: Definition, History, and Role in Racial Segregation, Investopedia,https://www.investopedia.com/single-family-zoning-5192299 (last updated Nov. 17, 2024).
[xiv] See id.
[xv] See id.
[xvi] See Addressing the Housing Cost Crisis: Zoning Regulations and their Impact on Affordability in the U.S., EConsult Solutions, Inc. (Sep. 13, 2024) https://econsultsolutions.com/addressing-the-housing-cost-crisis.
[xvii] See id.
[xviii] See id.
[xix] See id.
