Single-family zoning covers 75 percent of residential land in most American cities. It is, by design, a mechanism for restricting housing supply. And it is the single greatest driver of the housing affordability crisis that now afflicts every major metropolitan area in the country.
The history is not flattering. Exclusionary zoning emerged in the early 20th century as a tool for racial and economic segregation — a way to keep undesirable populations out of desirable neighborhoods. The language has changed. The effect has not.
Minneapolis abolished single-family zoning in 2040. Within three years, housing construction had increased by 12 percent and rent growth had slowed significantly relative to comparable cities. The experiment is working.
The political economy of zoning reform is brutal. Existing homeowners benefit from restricted supply — it inflates their property values. They vote at high rates and attend planning meetings. Renters and future residents, who would benefit from more housing, are diffuse and unorganized. The result is a policy that serves the few at the expense of the many.
