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Zoning and the American Suburb

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Abstract

American suburbs are generally characterized by single-family neighborhoods featuring large lots, with few businesses or apartments. To understand the origins of this pattern of development, we construct the first panel dataset of suburban zoning maps and bylaws for a major American metropolitan area and ask how comprehensive land use regulation shaped the form of the suburbs of Chicago today. Our strategy identifies the impact of zoning using land that was undeveloped before such regulations were adopted. The typical post-zoning suburban neighborhood sets aside over 90 percent of land for single-family homes, but adopting the most diverse zoning we observe reduces the single-family share by about half, with most of this land redistributed to businesses and apartments in equal measure. Supply restrictions were also binding earlier than widely believed, and prewar minimum lot size regulations were associated with lots that were 20 percent larger than those that emerged from unregulated markets. Comprehensive land use regulation thus substantially increased the prevalence of single-family residential neighborhoods relative to the suburban form that would have prevailed without zoning, which would have featured more mixed uses and smaller lots.

Suggested Citation

  • Ryan Gallagher & Allison Shertzer & Tate Twinam, 2026. "Zoning and the American Suburb," Working Papers 26-37, Federal Reserve Bank of Philadelphia.
  • Handle: RePEc:fip:fedpwp:103638
    DOI: 10.21799/frbp.wp.2026.37
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    JEL classification:

    • K11 - Law and Economics - - Basic Areas of Law - - - Property Law
    • N92 - Economic History - - Regional and Urban History - - - U.S.; Canada: 1913-
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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