What does the term “zoning” refer to in real estate?

Zoning refers to the regulation of land use by local governments, which is crucial in managing and directing the development within a community. Local jurisdictions implement zoning laws to establish how different parcels of land can be used, designating areas for residential, commercial, industrial, or agricultural purposes. These regulations help ensure that land is used in ways that promote the health, safety, and general welfare of the community, while also preventing conflicts between different types of land uses. For instance, zoning can prevent factories from being built next to homes, thereby maintaining quality of life for residents. Through zoning, governments can also control the density of development, lot sizes, and the types of buildings that may be constructed, impacting the overall layout and ambiance of neighborhoods.