Zoning is a fundamental aspect of urban planning that shapes the way land is used and developed. In real estate, zoning regulations determine how a property can be utilized—be it for residential, commercial, industrial, or mixed-use purposes.
Understanding zoning laws is essential for property buyers, investors, and developers to avoid legal issues and maximize a property’s potential. In this article, we will explore what zoning in real estate means, its types, and how it impacts property development and investment decisions.
Let’s understand the term a step further with this article!
A zoning category in one city may not represent the same in another. Local authorities use alphabets to identify the purpose of each zone such as
These alphabets are paired with a number that indicates the level of use, the square footage for that particular property, or the amount of acreage. Let’s break down each type for a better understanding.
Residential zoning covers issues such as the number of structures allowed on a certain piece of land or whether mobile homes can be placed on a particular property. Residential zones include
Residential zoning laws typically prohibit pets in the area but they allow domesticated animals such as cows, pigs, horse, or sheep subjected under certain requirements. Most laws do not allow farm animals on residential properties while others limit animals based on the size of the piece of land.
Can you run a business from your residential property? Home-based businesses in residential zones are subject to these details
Not all zoning regulations allow home-based businesses to run in residential zones while the ones that allow will decide on the basis of the business hours and the nature of the business. Home-based regulations for condos are more stringent than private residences.
Commercial zoning depends on the type of business run on the peropety and the numbero f patrons involved except single family lots and homes, all types of real estate is considered commercial. Here are some examples of commercial zones:
Some vacant land and apartment complexes that might turn into one of the above mentioned commercial zones also come under commercial zoning laws. These zones also depend on the parking availability in the property. Only certain commercial laws allow businesses to be closer to each other and they ban adult entertainment establishments in particular geographical areas (i.e., nowhere near schools or churches).
Industrial zoning laws are business-specific and include aerovent factors like noise and wastage management concerns. Here are some examples of Industrial zones:
Industrial zoning also depends majorly on floor area ratio and the height if the buildings on a lot. The set-back requirements for industrial zones are higher than other types of zoning.
Agricultural zoning ordinances restrict all non-farm uses of land except dwelling. They set aside a large minimum lot for a residential unit and protect farming communities that are being dismantled by residential developments. The density of development in agricultural zones vary depending upon the type of agriculture. Most states recognize only agricultural zones for
Rural zones are often ranches or farms but in certain parts of the country, this type of zoning also includes residential zones that have been allowed to have cattle or horses. There is no maximum or minimum size for a rural zone and they typically mean a building on agricultural land that is located outside urban developmental boundary. The primary use of rural zones are residential rather than agricultural.
Combination zones are a mixture of different types of zoning serving mixed purposes. The combination zoning laws permit a particular property to have a mix of Industrial, commercial, and/or residential uses. It can be of 3 main forms:
Buildings over 50 years of age come under historic zones where the laws does not allow any changes to the original condition of the said building. There will, however, be allowances for restoration and repair all the while staying qualified for government tax incentives. The National register of Historic Places maintains a list of these cultural places and coordinates and supports private and/or public efforts to identify, evaluate, and protect historic zones.
Here’s what the list typically contains from the from the US history, culture, engineering, archeology, and architecture:
Property owners of historic zones can submit an application in the National register and can stand eligible for 20% investment tax credit. This credit can be combine with a straight-line depreciation period of
The credit is further reduced by the amount of tax credit claimed.
Aesthetic zones are buildings that are approved by an architectural review committee. These zones have become popular in upscale communities and cover the following aspects
Here is a list of different types of zones you can identify in your neighbourhood:
Mixed land use for urbanized development
Now that we understand the different types of zoning in real estate, let us go an inch further to learn of its highlights and importance:
Development authorities make use of land maps to notify zones and their usage pattern. Zones are marked using colours on the maps for graphically displaying its uses, nearby roads, public infrastructure, and community facilities.
Here’s a tabular explanation of what these colours mean.
| Colors | Significance of the Colors on the Zoning Map |
| Light yellow | Main or mixed residential use of land |
| Dark yellow | For mixed industrial use and essential services like stores, clinics, and around 33% of commercial activity |
| Green | Just like the color, significance of greenery or agricultural land. Shades to differentiate between valleys, forests, ponds, etc |
| Red | Public and semi-public use of area like garden, worship places, etc |
| Light blue | Commercial purpose like central business, offices, etc |
| Dark blue | Retail purpose like malls, hotels, cinema, etc |
| Light violet | Individual purpose and establishment |
| Dark violet | High-tech industries |
| Gray | Heavy industries |
Indian civic authorities are making use of Euclidean-based zoning to classify the usage of land or a particular geographical area. Different types of zoning includes residential, multi-family, single-family, commercial, and others.
The process of zoning has taken an integrated course because of the ever-increaseing dearth of land in India. For instance – the use of a mixed residential zone allows what was allowed in primarily residential zones, like banks, restaurants, shops, bakeries, etc. On the other hand, the commercial land use zone allows all in the primary residential and mixed residential zones.
Issues with zoning laws may arise an time and may affect your freedom to do what you please on yoru land. You may petition to enforce zoning on your poetry nder specific circumstances. Reach out to a zonin attorenry experienced in land use laws to clear your questions on what you can do on your land.
