ZONING AS A TOOL FOR LAND ALLOCATION

This research examines the use of the zoning process as a tool for land allocation. In a zoned regime, land is divided into geographical districts (zones) pursuant to local ordinance. Municipal regulations are then used to specify the various types of land use that are permitted in the different zones.

Arguments by proponents of the zoning process contend that rational land use decisions cannot be made in the absence of some degree of governmental control. This argument is based on an assessment of historical experience that links the rise of zoning to failures of unzoned regimes to promote acceptable and coordinated land use decisions. Opponents of the zoning process argue that market forces will produce a system of land use that is both satisfactory and coordinated. This argument is similar to that made by the so-called free-market environmentalists in their ravings against environmental protection regulation. Historical experience is typically of no relevance to such people, and when history cannot be avoided, it is conveniently reinterpreted. Zoning is frequently opposed because economic costs are associated with the process. It is most certainly true that economic costs are associated with zoning. The relevant question in this context involves the relationship between those costs and any benefits that derive from the application of the zoning process.

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tates than does any other single asset classification. Value in real estate is an objective factor; that is, it refers to market value. Market value is concerned with the present worth of future benefits, and is predicated on the following assumptions with respect to real estate, a real estate transaction, and the parties to a real estate transaction: 1. The market value is the highest money price for which the property is likely to sell in a competitive market. 2. Both buyer and seller are typically motivated, so that price is not affected by undue stimulus. Market value is affected by the zoning process. Market value in real estate, it is important to note, is based, in large part, on the highest and best use doctrine. This doctrine is interpreted to mean the hest present value . . . . Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in the highest value. Higher market values pressure owners into placing land into so-called "higher and better" uses. Restrictions on the capability of real property owners to place land in higher and better uses would have
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Some common words found in the essay are:
Economics Location, Efficiency Zoning, Zoning Real, Manufactured Products, Constitutionality Zoning, Issue Arguments, Rental Housing, Foundation Inc, Brookings Institution, ALLOCATION Introduction, zoning process, free market, free market economy, market economy, real estate, rental housing, market value, infrastructure development, growth development, control legislation, economic efficiency, growth development control, public private sector, proponents growth development, cost rental housing,
Approximate Word count = 3052
Approximate Pages = 12 (250 words per page)