economics Paradigm Challenge

Strict zoning is what's killing cities like Detroit, even though there's no actual shortage of housing.

March 18, 2026

Original Paper

Rezoning The Rust Belt

Brian Connolly, Noah Kazis

SSRN · 6404960

The Takeaway

We usually think of zoning as a problem for expensive cities like San Francisco where it drives up rent. This paper shows that in economically stagnant areas, the same laws prevent small-scale 'fixer-upper' projects from being legal, effectively mandating that abandoned lots stay empty because building anything new is too expensive to comply with the rules.

From the abstract

Contemporary debates about land-use law treat restrictive zoning as a problem of expensive, high-demand markets. Economically stagnant or depopulated places are ignored, or assumed not to need regulatory reforms. These places' omission in this discourse is a mistake. In weaker markets, land-use regulations do not cause housing shortages, but they still impose frictions that seriously and unnecessarily encumber revitalization. This Article describes how land-use law impedes redevelopment, focusin