It’s becoming increasingly difficult for millennials in Washington state to purchase a home. Why are homes so expensive? Many factors are hidden behind the final cost of a home–zoning regulations are one.

Economists from across the political spectrum agree that zoning artificially drives up home prices by limiting the supply of housing that can be built in an area. Over $71,000 of a price of a new home in Washington state is due to zoning regulations. 

What is zoning?

Zoning is a land-use planning tool city and county governments use to divide land into areas that determine:

• Lot size
• Building density
• Use of buildings (homes, warehouses, etc.)
• Building type (duplexes, single-family homes, businesses, etc.)

These regulations are often framed as serving a noble purpose such as “preserving community character” or “protecting existing home values.” But the harsh reality is that they make it harder to build the ‘missing middle’ homes, such as townhomes and duplexes, and further decrease homeownership opportunities. 

Zoning expands social inequality 

While zoning regulations are certainly a nuisance for builders, they are bad for everyone. Less land to build more homes leads to skyrocketing home and rent prices for all.

When land is more expensive due to zoning, it increases the price of homes and creates a more exclusive neighborhood. Those who can’t afford a home in these areas are pushed out, further increasing income inequality and hindering the ability of families to build generational wealth through the investment of owning a home. 

These misguided regulations result in fewer opportunities for a community to build affordable, market-rate homes. This in turn hurts everyone but exponentially hurts historically disadvantaged families. To improve social equity, we need to increase homeownership opportunities.

We need change

Local governments should take time to revisit their zoning regulations. If zoning is found to be excessively restrictive, changes should be made to allow for a more diverse supply of housing options. Streamlining and expediting the process for zoning changes would also help more variations of homes to be built faster. State government could also consider offering funds for local jurisdictions undertaking this transformative work.

It’s time to change the narrative. We need to provide equal access to homeownership in Washington state. Learn 10 easy steps on how you can help by signing up for the Cut The Costs Action Plan.