Zoning

DEFINITION of 'Zoning'

Municipal or local government laws that dictate how real property can and cannot be used in certain areas. Zoning laws limit commercial use of land in order to prevent oil, manufacturing or other types of businesses from building in residential neighborhoods. However, these laws can be modified or suspended if construction of the property will serve to help the community advance economically.

BREAKING DOWN 'Zoning'

Parks, businesses and homes are all restricted under zoning laws. Zoning areas include industrial, light industrial, commercial, light commercial, agricultural, single-family residential, multi-unit residential and schools. In 1926, the Supreme Court ruled that properly drawn zoning ordinances were a valid exercise of the states' governing power. Zoning became constitutional by the U.S. supreme court as a result of the case Village of Euclid v. Ambler Realty Co., 272 U.S. 365, 395 (1926).

RELATED TERMS
  1. Zoning Ordinance

    Written regulations and laws that define how property in specific ...
  2. Zone Of Resistance

    A price zone in which a stock finds resistance and begins to ...
  3. Real Estate

    Land plus anything on it, including buildings and natural resources.
  4. Property Management

    The administration of residential, commercial and/or industrial ...
  5. Commercial Code

    Private and public laws that regulated how commerce is to be ...
  6. Commercial Property

    Real estate property that is used for business activities. Commercial ...
Related Articles
  1. Markets

    Zoning Laws for Home Based Businesses

    Understand what types of home-based businesses are allowed and what types of businesses aren't allowed. Learn what to do to ensure zoning compliance.
  2. Investing

    Understanding Real Estate

    Real estate is an encompassing term that refers to land, the buildings on that land, and its natural resources, such as crops and minerals.
  3. Managing Wealth

    The 5 Best Real Estate Lawyers in Chicago

    Read about some of Chicago's top lawyers working in real estate law, and find out what types of clients they serve and what services they offer.
  4. Investing

    How You Make Money In Real Estate

    No matter what anyone tells you, the basic ways that money is made through real estate haven’t changed in centuries.
  5. Personal Finance

    How You Make Money In Real Estate

    If you're interested in the real estate game, make sure you know what factors will affect whether you make money or not.
  6. Managing Wealth

    The 5 Best Real Estate Lawyers in Manhattan

    Learn about some of the top lawyers practicing residential and commercial real estate law in Manhattan, and read more about what legal services they offer.
  7. Investing

    Exploring Real Estate Investments: Types Of Real Estate

    By Ian Woychuk, CFA In the previous chapter, we discussed the various categories of available real estate investments, including direct property ownership, mortgages, and debt or equity securities. ...
  8. Personal Finance

    The Reality of Commercial Real Estate Loans

    It’s corporations and partnerships that most commonly take out commercial real estate loans.
  9. Investing

    How Property Rights Affect Economies

    Property rights are laws governments create that enable investors to control, benefit from, and transfer property.
  10. Markets

    Law Of Diminishing Marginal Utility

    Learn about this law of economics related to consumption.
RELATED FAQS
  1. How much of the global economy is comprised of the real estate sector?

    Find out how much of the global economy consists of the real estate sector, including output from commercial and residential ... Read Answer >>
  2. Is a person registered for Financial Instruments Business eligible to conduct both ...

    Explore Japan's 2006 Financial Instruments and Exchange Law, and understand how the law affects investment services regulation. Read Answer >>
  3. What are some of the challenges in real estate development?

    Learn what real estate development is, what developers do, and how real estate development is hindered by both risks and ... Read Answer >>
  4. How can retail investors invest in commercial paper?

    Find out how individual retail investors can purchase short-term commercial paper, but why it rarely makes good investment ... Read Answer >>
  5. To what extent do banks have exposure to different business lines?

    Learn how banks are exposed to risk and what the different types of exposure mean. Find out about the 2014 U.S. commercial ... Read Answer >>
  6. How does the law of supply and demand affect the housing market?

    Learn about the law of supply and demand, the relationship between supply and demand and how the law of supply and demand ... Read Answer >>
Trading Center