Flipping the Zoning Coin

One of the increasingly popular tactics that cities are using to address America’s housing shortage is to relax or eliminate single-family zoning (SFZ), also known as exclusionary zoning. Some of those same cities are also starting to use a different form of zoning—inclusionary zoning—to address the housing shortage. In short, this means shifting from mandatory exclusion to mandatory inclusion.

The rejection of SFZ isn’t a principled shift towards the recognition and protection of property rights. It’s a purely expedient move, and it is driven by the same short-term, collectivist thinking that gave rise to SFZ more than one-hundred years.

The purpose of SFZ was and remains the protection of “community values.” SFZ is a “tool” used by government officials to keep certain kinds of people—usually low-income families and minorities—out of a community. According to the advocates of SFZ , the values of “the community” supersede the values of individuals. “The community” sees certain kinds of people as a threat to their values, and they use the government’s club to keep those people out.

Inclusionary zoning (IZ) is simply the flip side of the SFZ coin. IZ is a “tool” used by government officials to keep certain kinds of people—usually low-income families and minorities—in a community. IZ is frequently used when gentrification threatens to displace long-term residents. Under IZ, developers are required to include below market-rate housing in the project in exchange for permission to proceed. According to the advocates of IZ, the culture and values of “the community” supersede the values of individuals. “The community” sees certain types of people—usually more affluent and white—as a threat to their values, and they use the government’s club to keep people in the community.

Both forms of zoning—indeed, all forms of land-use regulation—are founded on the premise that “the community” should impose its values upon individuals. No matter what adjectives are used, zoning subjugates the individual to the collective. Zoning, by its nature and intent, prohibits individuals from using their property as they choose.

SFZ prohibits even innocuous forms of housing, such as “granny flats” or duplexes. IZ forces developers to rent housing at a loss. SFZ inflates housing prices by arbitrarily removing land from development. IZ inflates housing prices by forcing more affluent tenants to subsidize low- and moderate-income families.

If we really want to solve the housing shortage, then we must reject the idea that the individual is subordinate to the group. If we really want to solve the housing shortage, then we must enable individuals—all individuals—to pursue the values that they desire.