What does the term "zoning" refer to in real estate?

The term "zoning" in real estate refers specifically to the regulation of land use and development. Zoning laws are enacted by local governments to designate specific areas for different types of activities, such as residential, commercial, industrial, agricultural, or mixed-use. These regulations help manage land development in a way that supports orderly growth, organizes land use according to the needs of the community, and protects the character of neighborhoods.

For example, a zoning ordinance might prevent a factory from being built in a residential area to maintain the quality of life for residents. By establishing zoning classifications, local authorities ensure that land is used appropriately, enhance property values, and minimize conflicts between different land uses.

Understanding zoning is crucial for anyone involved in real estate, whether investing, developing, or purchasing property, as it can greatly influence a property's potential uses and value.