As the nation continues to wrestle with the persistent issue of housing affordability, zoning laws have come under the spotlight as potential barriers or facilitators in the quest for more accessible housing. According to a recent article by the National Association of Home Builders (NAHB), zoning and land use policies can either constrain or promote housing production, largely depending on their structure.
The article highlights how incentives such as density bonuses and streamlined approval processes can encourage the development of affordable housing by promoting efficiency in building timelines and increasing the number of units to meet demand. However, common zoning barriers like minimum lot sizes and height restrictions often limit supply and hinder development.
Understanding Zoning Regulations
Zoning regulations dictate how land can be utilized in specific areas, typically within a city or county. These ordinances control permissible activities on a piece of land and set limits on building size, height, density, and location. The concept of zoning emerged in the U.S. in the early 20th century, with New York City enacting the first comprehensive zoning ordinance in 1916. This aimed to tackle issues such as overcrowding and incompatible land uses.
A landmark U.S. Supreme Court case, Village of Euclid v. Ambler Realty Co., in 1926, validated zoning ordinances as constitutional under the police power of local governments, provided they relate to public health, safety, morals, or general welfare. This led to the widespread adoption of “Euclidian Zoning,” which allows one kind of land use per zone.
Inclusionary Zoning: A Double-Edged Sword
Inclusionary zoning (IZ) policies require developers to include a percentage of affordable housing units in new developments. While intended to boost affordability, these policies often act as additional taxes on developers, leading to unintended consequences like increased costs for market-rate units and reduced overall housing production. A study of Los Angeles’s Transit-Oriented Communities (TOC) program found a significant decline in housing production with IZ requirements.
Various reports, including one from the Mercatus Center at George Mason University, have shown that IZ has minimal impact on real housing supply and can even cause prices to rise faster in areas with such policies.
Overcoming Zoning Barriers
Zoning regulations have historically acted as barriers to affordable housing by favoring single-family zoning and larger homes on larger lots. However, some states are working to override local exclusionary zoning laws. For instance, California’s laws, such as SB 9 and SB 10, allow for duplexes and small multifamily developments in areas previously zoned for single-family homes. Similarly, New York is advancing policies to pre-empt local zoning rules to encourage higher-density housing near transit stations.
The NAHB article emphasizes the need for thoughtful adjustments to zoning policies and regulatory frameworks to create an environment where safe, affordable housing is accessible to all. By adopting broader zoning laws and offering incentives like density bonuses, policymakers can work towards a future where housing is abundant and affordable for a broader range of residents.
