# Zoning

*Real Estate — Finicade finance glossary*

Zoning is the local rulebook governing what can be built where — use, height, density, parking, setbacks. It is the largest single determinant of land value: the same plot is worth multiples more if it may hold apartments rather than one house. Restrictive zoning is also the mechanism behind most housing shortages, since it caps supply exactly where demand is highest.

**Also known as:** zoning laws, planning permission, land use

**Related terms:** [Easement](https://finicade.com/glossary/easement), [Construction Loan](https://finicade.com/glossary/construction-loan), [Commercial Real Estate](https://finicade.com/glossary/commercial-real-estate), [Opportunity Zone](https://finicade.com/glossary/opportunity-zone), [Housing Affordability](https://finicade.com/glossary/housing-affordability)

Source: https://finicade.com/glossary/zoning