What does "zoning" refer to in real estate?

Zoning in real estate refers to the system of laws and regulations that dictate how land within a given municipality can be used. It establishes designated categories for land use, such as residential, commercial, industrial, or agricultural, and outlines what types of buildings and activities are permitted in each zone. These zoning laws help to maintain the character of neighborhoods, manage urban growth, and prevent conflicts between incompatible land uses.

For example, a residential zone may restrict properties to single-family homes, while a commercial zone might allow businesses and retail establishments. Zoning regulations also play a crucial role in urban planning, ensuring that land is used in a way that promotes the health, safety, and general welfare of the community. Thus, understanding zoning is essential for anyone involved in real estate, as it directly affects property values, development opportunities, and compliance with local regulations.