ZONING AND AFFORDABLE HOUSING: HOW LAND USE REGULATIONS LIMIT DEVELOPMENT IN THE USA

##plugins.themes.bootstrap3.article.main##

##plugins.themes.bootstrap3.article.sidebar##

Published: Dec 29, 2025

  Mykyta Kravchenko

Abstract

The conventional exclusive zoning policy in the United States has resulted in issues pertaining to housing affordability, housing segregation, and the exclusion of low-income families from areas characterised by higher levels of socio-economic development. The purpose of the article was to identify the impact of land use regulations on housing affordability in the United States. In particular, the most important legal restrictions, socio-economic consequences, and the need to change the housing regulation policy are highlighted. The study is based on the methods of meta-analysis of scientific publications to systematize land use regulations in the United States, and the method of analysing housing affordability indicators for extremely low-income tenant households in different states of the United States in 2024. The article examines the current issues of the impact of state regulation in the United States, "single-family" zoning, established restrictions on building density, and political obstacles to housing affordability in the United States. A comprehensive meta-analysis of empirical studies, complemented by an analysis of prevailing regulatory restrictions, has revealed a significant impact of regulatory policies on housing shortages and affordability. This has resulted in "distorted" demand and a decline in the number of developments, particularly in densely populated states and agglomerations. It was determined that a series of discrete legislative policy changes would be required to address the issue of housing affordability. A comparative analysis of housing affordability indicators in individual US states has revealed significant problems with housing provision for extremely low-income tenants and a significant financial burden on households. In 2024, the most severe housing shortages were observed in the states of Nevada, Arizona, Alaska, Florida, and Texas. This phenomenon can be attributed to the current restrictions on development in these regions. The housing affordability crisis in these regions has the most negative impact on tenants with critically low incomes—defined as less than 30% of the state average. Consequently, households in such states face a high level of financial burden due to high rental costs. US land use policies consequently lead to residential segregation and socio-economic inequality. In this regard, it is justified to review zoning principles and develop a more inclusive land use policy. The implementation of policy instruments aimed at promoting housing affordability, such as delayed approval deadlines, land use restrictions, and project requirements, has been observed to result in an increase in construction costs. In view of this, a proposal is put forward to introduce new incentives for developers by changing the requirements for building density, reducing bureaucratic obstacles, and introducing a flexible approach to land use. A novel approach to inclusive zoning involves the targeted zoning of territories within states. However, existing political challenges serve to limit the implementation of this approach. The formal abolition of zoning regulations alone will not guarantee a solution to the problem of housing affordability, given the cost of construction and rental. The issue of housing affordability necessitates a systemic resolution.

How to Cite

Kravchenko, M. (2025). ZONING AND AFFORDABLE HOUSING: HOW LAND USE REGULATIONS LIMIT DEVELOPMENT IN THE USA. Three Seas Economic Journal, 6(4), 29-34. https://doi.org/10.30525/2661-5150/2025-4-4
Article views: 12 | PDF Downloads: 7

##plugins.themes.bootstrap3.article.details##

Keywords

zoning, housing affordability, land use regulation, development, US housing policy, urban planning

References

Biber, E., Gualco-Nelson, G., Marantz, N., & O'Neill, M. (2022). Small Suburbs, Large Lots: How the Scale of Land Use Regulation Affects Housing Affordability, Equity, and the Climate. DOI: https://doi.org/10.26054/0D-XYPQ-VYNX

Bratt, RG, & Vladeck, A. (2014). Addressing Restrictive Zoning for Affordable Housing: Experiences in Four States. Housing Policy Debate, 24 (3), 594–636. DOI: https://doi.org/10.1080/10511482.2014.886279

Einstein, KL, Glick, DM, & Palmer, M. (2019). Neighborhood Defenders: Participatory Politics and America's Housing Crisis (1st ed.). Cambridge University Press. DOI: https://doi.org/10.1017/9781108769495

Gabbe, CJ (2019). Changing Residential Land Use Regulations this Address High Housing Prices: Evidence from Los Angeles. Journal of the American Planning Association, 85 (2), 152–168. DOI: https://doi.org/10.1080/01944363.2018.1559078

Glaeser, E., & Gyourko, J. (2018). The Economic Implications of Housing Supply. Journal of Economic Perspectives, 32 (1), 3–30. DOI: https://doi.org/10.1257/jep.32.1.3

Hanley, A. (2023). Rethinking Zoning This Increase Affordable Housing. 80 (2). Available at: https://www.nahro.org/journal_article/rethinking-zoning-to-increase-affordable-housing/

Ikeda, S. (2015). How Land Use Regulation Undermines Affordable Housing (SSRN Scholarly Paper No. 3211656). Social Science Research Network. DOI: https://doi.org/10.2139/ssrn.3211656

Infranca, J. (2019). The New State Zoning: Land Use Preemption amidst a Housing Crisis by John Infranca: SSRN. 60, 823.

Landis, J., & Reina, VJ (2021). Do Restrictive Land Use Regulations Make Housing More Expensive Everywhere? Economic Development Quarterly, 35 (4), 305–324. DOI: https://doi.org/10.1177/08912424211043500

Massey, DS, & Rugh, JS (2017). The Intersections of Race and Class: Zoning, Affordable Housing, and Segregation in US Metropolitan Areas. In The Fight for Fair Housing. Routledge.

National Low Income Coalition. (2024). The gap: A shortage of affordable home.

Nicholas, J. (2024). How Zoning Regulations Affect Affordable Housing. Available at: https://www.nahb.org/blog/2024/11/zoning-regulation-and-affordable-housing

Quigley, J.M. (2005). The Effects of Land Use Regulation on the Price of Housing: What Do We Know? What? Can We Learn? 8 (1), 69–136.

Rothstein, R. (2017). The Color of Law: A Forgotten History of How Our Government Segregated America. Economic Policy Institute. Available at: https://www.epi.org/publication/the-color-of-law-a-forgotten-history-of-how-our-government-segregated-america/

Rumbach, A., Sullivan, E., McMullen, S., & Makarewicz, C. (2022). You don't need zoning this be exclusionary: Manufactured home parks, land use regulations and housing segregation in the Houston metropolitan area. Land Use Policy, 123, 106422. DOI: https://doi.org/10.1016/j.landusepol.2022.106422

Schragger, R. (2021). The Perils of Land Use Deregulation (SSRN Scholarly Paper No. 3821094). Social Science Research Network. Available at: https://papers.ssrn.com/abstract=3821094

Tziganuk, A., Irvine, B., Cook-Davis, A., & Kurtz, LC (2022). Exclusionary Zoning: A Legal Barrier this Affordable Housing. Morrison Institute for Public Policy. Available at: https://morrisoninstitute.asu.edu/sites/default/files/exclusionary_zoning_legal_barrier_to_affordable_housing.pdf