Summary

The video discusses how zoning laws, particularly those favoring single-family housing, contribute to housing unaffordability by restricting supply and increasing development costs. It highlights the historical roots of zoning in segregation and its continued impact on affordability and even emergency response times. It advocates for ending single-family-only zoning and encouraging diverse housing options to address the housing crisis.

Highlights

• ️ Zoning laws, originating in the early 1900s, initially intended for urban organization, have evolved into tools that restrict housing supply and drive up prices, disproportionately affecting affordability.
• Zoning regulations often prioritize single-family housing, making it difficult or impossible to build multi-family units, leading to a scarcity of housing options and increased costs.
• Lengthy and complex zoning processes increase development costs and delay projects, ultimately contributing to higher rents and housing prices.
• Restrictive zoning pushes first responders to live further from city centers, increasing response times and potentially impacting public safety.
• Solutions include ending single-family-only zoning, allowing ADUs and multi-family dwellings, and incentivizing developers to build affordable housing, creating a more balanced housing market.

TRANSCRIPT:

There’s a 100-year-old law that’s keeping your rent high, your home unaffordable, and your city stuck in the past. It’s not interest rates. It’s not the Fed. It’s zoning laws—and they’re keeping you poor.

Zoning laws began in the early 1900s. They started in Los Angeles in 1908, originally used to exclude Chinese-owned laundries from residential neighborhoods. Then New York followed during industrialization to separate residential and industrial areas. On the surface, zoning was about organizing cities. But behind the scenes, it was often used to segregate communities. What used to be called redlining is now enforced through friendly city codes.

Zoning dictates what you can build and where. In most cities, apartments, triplexes, and duplexes are not allowed. Zoning laws overwhelmingly favor single-family housing. Controlled by local governments, these laws block new housing, keep supply low, and drive prices up—both for rentals and ownership.

Many laws make it illegal to build multifamily housing. This is a major reason I don’t buy in certain areas—local communities actively block high-density housing. These restrictions are especially supported by voters in single-family neighborhoods who influence local councils and mayors.

Zoning makes development a long, expensive nightmare, which limits supply and raises housing and rental prices. In the town where I live, only single-family homes are allowed, and each lot must be at least one acre. That pushes home prices to record highs.

These outdated zoning laws are a direct reason you’re paying more for rent, homes, and land. We recently spoke with a zoning expert on our podcast who explained that many of these laws are over a century old. They even threaten historic downtown buildings with restrictions on parking, height, and setbacks.

These rules need to be reviewed on a case-by-case basis, especially when it comes to affordability. The expert also pointed out that these restrictions push essential workers—firefighters, police officers, ambulance drivers—out to the outskirts of cities, where they can afford to live. This means longer response times during emergencies, creating a public safety issue.

This matters because the U.S. population has grown by 58 million people over the past 20 years. Those people need housing. While some move in with family, many graduate and move out, requiring homes of their own. But cities and politicians are restricting development, even in high-demand areas. That pushes prices even higher.

In response, some cities have implemented rent control and rent caps. For example, Washington State recently passed a rent cap law. Instead of easing zoning restrictions to increase supply and reduce costs, they’re limiting rents, which drives investors and builders away—just like it did in parts of Oregon and California, where much of the housing stock is decades old.

Whether you realize it or not, zoning laws are costing you money every single month. They’re quietly locking you out of the American dream.

From the developer’s side, my partner Ross and I have been building apartments for over 30 years. We manage more than 10,000 units across the western U.S. Zoning laws are one of our biggest challenges. They’re a barrier to affordability and supply. We’ve had projects delayed months, even years, because of outdated zoning codes. In many cases, after spending large sums on development plans, we’ve been told we can’t move forward due to local votes.

That means more time, more money, and ultimately higher rents for existing tenants. If you want to avoid these kinds of costly mistakes, I’ve put together a free guide called Can’t Build Here: Seven Zoning Mistakes That Cost Investors Millions. Download it using the link below.

Zoning boards don’t just slow you down—they kill deals that could have created thousands of affordable units. So who wins? Wealthy homeowners who don’t want change, politicians who rely on their votes, and cities that make more revenue from single-family housing.

Zoning protects property values—but not people. It’s a system designed to benefit the few at the expense of the many.

If we want affordable housing, we must end single-family-only zoning, allow ADUs, duplexes, and triplexes in all communities, and incentivize developers to build where people actually want to live. We need a blended housing policy—because not everyone is wealthy.

As a developer, I’ve seen firsthand how zoning delays or blocks smart projects. Real estate is a team sport, but right now, zoning boards are rigging the game. If you’re an investor, you can’t afford to ignore this.