What is the meaning of "Zoning" in the context of real estate?

Zoning in the context of real estate refers to regulatory frameworks established by local governments that dictate how land within certain areas can be used. This includes designating specific uses for different parcels of land, such as residential, commercial, industrial, or agricultural purposes. Zoning laws help to manage urban growth, protect property values, and ensure that land is used in a manner that is compatible with surrounding properties and the community's planning goals.

For example, a zoning ordinance may allow for the construction of single-family homes in one section of a city while designating another area for commercial businesses. These regulations play a crucial role in urban development and land use planning, ensuring that land is developed in an organized manner that reflects the needs and desires of the community.