Tuesday, July 14, 2020

The conservative case against single-family zoning

Charles Marohn argues that "there is no greater distortion of the market than local zoning codes" and calls for the elimination of single-family zoning on "small government" principles:
The first of many ironies, of course, is that single-family zoning became the standard for American suburbs during the New Deal when the Roosevelt administration, through various programs such as the Home Owners Loan Corporation, required it for home refinancing assistance. 
These onerous regulations were further mandated for new construction by the Federal Housing Administration as well as the government-sponsored enterprises Fannie Mae and Freddie Mac. 
So if you want federal support for your housing, build a single-family home. If you want to live in that downtown shop with the house on the second floor, convert your house to a two- or three-unit building and rent it out—or do any number of normal and reasonable things that humans had been doing with their property for centuries to build their own wealth and prosperity—don’t expect assistance from the government. 
Yet now that we’ve lived with this artificial distortion for a couple of generations, and piled on others like the mortgage-interest tax deduction, some strange conservative instinct kicks in to defend this bankrupt institution. In reality, the Pilgrims built a traditional town surrounded by farmland. Our government paid us to move to the suburbs. Invoking the memory of the former to defend the latter is an historical absurdity.
Marohn's knockdown against single-family zoning was apparently triggered by an article by Stanley Kurtz in the National Review which claimed that Joe Biden and the Democrats want to "abolish the suburbs."  This claim, which has also been made by Donald Trump and is centered around the Affirmatively Furthering Fair Housing provision of the 1968 Fair Housing Act, is dubious. Marohn argues that, if conservatives were intellectually honest, they would be demanding an end to single-family suburban development on the grounds of economic efficiency: 
The suburbs run on federal subsidies. Without them, America’s suburbs would have to become more financially productive. They would need to get greater returns per foot on public infrastructure investment. That would mean repealing repressive zoning regulations, allowing the market to respond to supply and demand signals for housing. It would also mean allowing the “little downtowns” Kurtz fears to form where demand for them exists. Isn’t that what is supposed to happen with self-government and local control? 
All this would have to happen or the suburbs would go away because they can’t exist without excessive and ongoing federal subsidy. 
The progressive left has discovered that single-family zoning has racist underpinnings. That’s great, because we should now have no problem finding common cause for repealing this most distorting of regulations, one that the federal government never should have forced cities to adopt to begin with. 
In fact, the conservative thing for suburban leaders to do here is to not wait for the federal government to tempt us with more handouts, but to go ahead and show those progressives running the big cities that we live by our principles, that we embrace vibrant markets and free people, by preemptively repealing single-family zoning.
While I'm not sure I agree with Marohn's implication that single-family zoning is largely the result of "big government" (as opposed to a largely locally-driven effort fueled by NIMBYism), I do agree with him that single-family zoning is, like minimum parking regulations, a relic of late-20th-century land use control that needs to be phased out. Zoning started out in the early 20th century as a way to protect residences from nuisance uses such as factories or slaughterhouses, but it has evolved into a tool to enforce socioeconomic exclusion. 

Anybody who has read this blog knows that I, a former zoning officer for the city of Denton, am not a fan of traditional land-use zoning, and am thankful that Houston is the largest city in the nation without it.

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