How do zoning laws and regulations impact the US housing market?

Zoning laws and regulations play a significant role in the US housing market, as they determine where and how properties can be developed and used. Zoning laws divide land into different zones, such as residential, commercial, or industrial, and specify the types of buildings and uses that are allowed in each zone. The regulations associated with zoning laws can vary depending on the location and can include height restrictions, setback requirements, and minimum lot sizes.

These laws and regulations impact the housing market in several ways. For example, zoning laws can limit the supply of available housing, which can drive up prices in areas with high demand. They can also contribute to urban sprawl and gentrification, by limiting affordable housing options in certain areas. Additionally, zoning regulations can impact the type of housing that is built, which can affect the affordability of housing options for low-income households.