Study Finds Zoning Policies that Limit Rental Housing Availability in Neighborhoods Leads to Greater Racial and Socioeconomic Segregation

A recent article published in the Journal of Urban Affairs titled, “Rental Deserts, Segregation, and Zoning” examines how the concentration of rental housing may reinforce enduring patterns of racial and socioeconomic segregation. The authors found that nearly a third of U.S. neighborhoods qualify as “rental deserts,” where rental units make up less than 20% of the local housing stock. These neighborhoods were more likely to be suburban, higher income, have higher shares of white residents, and to have restrictive and exclusionary zoning policies that limit the development of rental housing relative to neighborhoods with greater shares of rental units. The findings suggest that these policies may serve to perpetuate racial and socioeconomic segregation by excluding renters, who are more likely than homeowners to be lower-income and people of color, from high opportunity neighborhoods. 

The authors dive into this concept of rental deserts and discuss how limiting rental housing availability through land use policies can lead to broader social consequences. Renting serves as a crucial housing option for many, particularly those who cannot afford homeownership due to financial constraints or systemic barriers. However, restrictive zoning policies, such as bans on multifamily housing and parking requirements, limit where rental housing can be built, leading to a concentration of rental units in specific areas while excluding them from others. Previous research has shown that this uneven distribution contributes to racial and economic segregation by restricting lower-income renters, who are disproportionately people of color, from accessing well-resourced neighborhoods.  

The authors sought to expand upon prior research to understand the spatial distribution of rental housing across the U.S. – including the frequency and location of rental deserts – and how this distribution relates to patterns of racial and socioeconomic segregation. Using data from the 2022 American Community Survey (ACS), they examined the distribution of all U.S. rental housing units across census tracts (a proxy for neighborhoods) and the 100 largest metro areas. Rental deserts were defined as areas where rental units account for less than 20% of the housing stock. Mixed tenure neighborhoods were defined as areas where rental units accounted for more than 20%, but less than 80% of the housing stock. Neighborhoods in which rental units comprised 80% or more of the housing stock were defined as high rental neighborhoods. The authors used a divergence index to assess the relationship between the spatial distribution of rental housing and the spatial distribution of racial and socioeconomic segregation. Additionally, they utilized Eviction Lab’s National Zoning and Land Use Database to examine the role of zoning and land-use restrictions in these areas. 

The authors found that rental deserts are disproportionately located in suburban areas, which tend to be higher income. Suburban neighborhoods (census tracts) account for 55% of all U.S. neighborhoods, but 68% of all rental desert neighborhoods; in contrast, urban areas account for 28% of all neighborhoods but only 9% of rental deserts. Rental deserts tended to have much higher shares of single-family homes (85%) relative to mixed-tenure (63%) and high rental (17%) neighborhoods. Similarly, rental deserts had higher median household incomes ($99,670 on average) than either mixed-tenure ($71,780) or high rental ($53,170) areas. The authors suggest that the limited number of rental options in rental deserts serves to “effectively exclude lower-income households from [these] communities.” 

Because of deep-rooted systemic inequities, Black and Hispanic households are more likely than other groups to be renters and to be lower income. The authors found that these inequities were reflected in the racial composition of neighborhoods, with high-rental neighborhoods having three times the share of Black or Hispanic residents relative to rental deserts. In contrast, white residents accounted for 75% of rental deserts, on average, compared to 33% of high-rental areas. Additionally, the analysis showed that metros with higher levels of tenure segregation also tended to have higher levels of racial and economic segregation. This underscores how limiting rental opportunities can exclude lower-income households and people of color from opportunity-rich neighborhoods. 

The authors also observed that restrictive zoning policies, such as minimum lot size requirements and limits on multifamily housing, significantly contribute to the existence of rental deserts. They identified specific zoning policies that were correlated with a lower share of rental housing, including stringent growth controls, parking requirements, and restrictions on multifamily housing development. On the other hand, policies that allow accessory dwelling units (ADUs) and inclusionary zoning programs were associated with higher shares of rental housing. These findings suggest that targeted zoning reforms could expand rental opportunities, reduce residential segregation, and create more diverse and equitable communities. 

The study concludes that zoning reforms, inclusionary housing policies, and rental-friendly land use regulations could help alleviate these disparities and promote more racially and socioeconomically integrated communities. The authors argue that while zoning changes alone will not completely dismantle patterns of racial and socioeconomic segregation, they are an essential first step in ensuring that rental opportunities are more evenly distributed across areas. 

This article can be found at: https://bit.ly/4hrO6cT.