Advisory Center for Affordable Settlements & Housing

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Edited By Tabassum Rahmani
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USA – The Economics of Exclusionary Zoning and Affordable Housing

The President of the United States created a Commission to study local zoning regulations and their impact on housing costs. After two years of intense research, the Commission submitted its much-anticipated report to the President. The  report concluded. Zoning affects land values in a number of ways. First, by protecting development against the encroachment of undesirable uses, it can help to maintain and enhance property values. Indeed, much of the interest and concern in the zoning system by homeowners is based on this desire to preserve their investment. Second, zoning may raise the price of land designated for certain uses by restricting the supply of such land. The report specifically concluded that such zoning regulations greatly increase the price of land for housing, and that rising land prices “further explain the squeeze on low-income families seeking decent housing.”4 The report noted that communities were particularly hostile to high-density housing; to mitigate this hostility, the report recommended that local governments discourage citizen involvement in the overall planning process.

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