Should Single-Family Zoning Be Abolished?

“Minneapolis abolished single-family zoning citywide in 2020. In the three years following, building permits issued increased 53% and rent growth in Minneapolis was slower than in comparable Midwest cities. California's 2021 statewide law (SB 9) allowing duplexes on any residential lot is the largest natural experiment in zoning reform in US history — early evidence shows it is increasing supply without the mass neighborhood displacement critics predicted.”

“Single-family zoning was historically used as a tool of racial segregation: explicit racial covenants were unenforceable after 1948, but zoning kept Black and immigrant families out of majority-white neighborhoods by making land too expensive for apartments. The wealth gap between homeowners and renters — which closely tracks racial wealth disparities — is partly a product of 80 years of exclusionary zoning that constrained housing supply in appreciating markets.”

“The empirical evidence on upzoning and affordability is more mixed than YIMBY advocates claim. Portland, OR abolished single-family zoning in 2021; early data shows that market-rate development concentrated in high-value neighborhoods, and rents for low-income residents in upzoned areas actually increased due to land speculation. Supply alone, without affordability requirements attached, does not serve the most cost-burdened renters.”

“Homeowners who purchased property under existing zoning rules made financial decisions based on the reasonable expectation that zoning would persist. Abolishing zoning without compensation is a taking of reasonable investment expectations — even if not a legal taking under the Takings Clause. It also destroys neighborhood characteristics — green space, quiet, single-family character — that many residents explicitly chose and pay property taxes to support.”