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. Planned Urban Development - PUD

    A type of community zoning classification that is planned and ...
  2. Commercial Investment

    Commercial investment involves investing in a for-profit enterprise ...
  3. Commercial Code

    Private and public laws that regulated how commerce is to be ...
  4. Land

    Land is property or real estate, minus buildings and equipment, ...
  5. Building Activity Indicators

    Economic reports that tell investors about the current and projected ...
  6. Government-Owned Property

    Government property consists of assets owned by federal, state ...
Related Articles
  1. Small Business

    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. Insights

    What To Do When The Government Wants Your Land

    Find out how the government evaluates your land, what your options are and how to get the most from it.
  3. Investing

    Top 4 things that determine a home's value

    Your house depreciates over time, while the land beneath it is likely to do the opposite. Here are the top determinants of your home's value.
  4. Investing

    How to make money in real estate

    If you're interested in the real estate investment, check out these factors that will affect your investment return.
  5. Managing Wealth

    The 5 Factors Of A 'Good' Location

    “Location, location, location” is a common mantra in real estate. And it’s good advice.
  6. Investing

    4 Difficult Places For Foreigners To Buy Real Estate

    Buying property in the U.S. can be a difficult process. Buying internationally can be even worse, especially in these four countries.
  7. Personal Finance

    Which States Are Community Property States?

    There are nine community property states. Here's what 'community property' means when a couple divorces.
  8. Investing

    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.
  9. Investing

    4 ways to value a real estate property

    Here are several approaches to evaluate real estate properties for investment purposes.
RELATED FAQS
  1. What are the differences between investing in real estate and stocks?

    Invest in real estate by purchasing physical property or buildings, or invest in stocks by buying a claim to a company and ... Read Answer >>
Trading Center