What is "zoning" in real estate?

Zoning in real estate refers to government regulations that designate how land in specific geographic zones can be used. These regulations are established by local governments and are designed to control land use, ensuring that different types of developments or activities do not negatively impact each other. For example, zoning laws can separate residential areas from commercial or industrial zones, thereby creating organized and functional communities.

This system helps maintain the character of neighborhoods, control population density, and manage traffic patterns. By specifying what can be built where, zoning also provides guidelines that promote health, safety, and welfare in the community.

Private agreements between neighbors about property use, while they may influence land use at a local level, do not constitute zoning. Similarly, zoning is distinct from property ownership types, which define how individuals or entities hold title to property, and it is also not a method for valuing property, which typically involves assessments based on market analysis and property features.