Report Finds Restrictive Zoning Laws in Connecticut Are Correlated with Racial and Economic Segregation

The Urban Institute released a report, Bringing Zoning into Focus, which evaluated the relationship between local zoning laws and racial and economic segregation in Connecticut. The research found that single-family zoning is correlated with neighborhood racial, ethnic, and economic segregation. Specifically, neighborhoods zoned only for single-family construction have households with significantly higher incomes and that are more likely to be white, highly educated, and homeowners, when compared to neighborhoods where zoning allows for multifamily buildings. 

Researchers evaluated “number-of-unit” zoning laws that specify the maximum number of units allowed, by-right, to be built on each residential parcel. The research focused on two primary questions: how do number-of-unit zoning laws vary across Connecticut localities and which types of communities adopt different number-of-unit zoning laws? To answer these questions, researchers used the Connecticut Zoning Atlas, a comprehensive dataset of statewide zoning policies, as well as demographic, economic, and housing variables from the U.S. Census and Zillow.

Researchers divided the state into three jurisdiction types: large cities with at least 70,000 residents, suburbs and towns, and rural areas. Overall, 62% of zoned land statewide allows for the construction of single-family homes by-right, meaning single-family construction can be approved without a public hearing. Only a fraction of the state’s zoned land allows for two-unit and three-unit structures by-right (26% and 2%, respectively). All three jurisdiction types zone more than 50% of their land for single-family homes by-right: 67% in suburbs and towns, 59% in rural areas, and 56% in large cities. Across the eight large cities, three allow structures with 4+ units by-right on more than 40% of their land areas. Conversely, four cities allow these types of buildings on less than 10% of their land areas.

Researchers found that the number-of-unit zoning laws are associated with large differences in household income both within and across the three jurisdiction types. Median household income is higher in neighborhoods zoned for single-family homes compared to areas zoned for 4+ unit buildings. Large cities had the greatest inter-geographic difference; on average, the median household income in city neighborhoods zoned single-family is $90,000 compared to $50,000 for city neighborhoods zoned for 4+-unit buildings. Households with higher incomes also tend to concentrate in neighborhoods zoned exclusively for single-family zoning, whereas neighborhoods that allow for 4+ units have a more balanced mix of household incomes. Regarding rent affordability, researchers found that rents and cost burdens are greater in neighborhoods zoned for multifamily housing, despite lower property values in those neighborhoods. Rents and cost burdens are also higher in neighborhoods with lower median household income. Researchers did not control for other factors, consequently the rents and cost burdens finding may reflect the overall shortage of rental units, even in neighborhoods that allow for multifamily construction.

Single-family only zoning is strongly associated with ethnic and racial segregation. In large cities, neighborhoods zoned for single-family homes are nearly 50% white. By comparison, neighborhoods zoned for 4+ unit properties are about 25% white and are more likely to have Black or Hispanic households. After controlling for other characteristics, higher concentrations of high-income and white residents are associated with zoning policies designed to keep the number of allowable units low. Conversely, a higher concentration of low-income, Black, and Hispanic residents is associated with zoning policies that allow two or more housing units per parcel as well as a higher share of renter-occupied housing.

The authors note that they cannot make claims of causation between zoning policies and demographic concentration because the data used is only from a single point in time. However, these findings indicate there is a relationship between restrictive zoning laws and the inequitable distribution of populations within and across jurisdictions.

Read the full report at: https://urbn.is/3N6hh8f