← Back to context

Comment by danny_codes

2 days ago

Yes, zoning does get magically fixed, because the incentives that led to zoning disappear. Under full LVT, owners have an incentive to maximize their land use. Otherwise, they will go bankrupt. So places with zoning more restrictive than land use demands will be underwater financially. Think SFH tract homes in Cupertino. These homeowners have fought viciously to retain SFH zoning. If LVT was imposed 95% of them would be faced with a tax bill they cannot pay. Their only option would be to surrender their land or rezone to allow development of sufficient scale to pay the tax.

It’s not wishful thinking it’s just a fact. Zoning exists because landowners want it. As soon as they don’t want it, it’s gone.