"Over the past few years, Japanese zoning has become popular among YIMBYs thanks to a classic blog post by Urban kchoze. It’s easy to see why: Japanese zoning is relatively liberal, with few bulk and density controls, limited use segregation, and no regulatory distinction between apartments and single-family homes. Most development in Japan happens “as-of-right,” meaning that securing permits doesn’t require a lengthy review process. Taken as a whole, Japan’s zoning system makes it easy to build walkable, mixed-use neighborhoods, which is why cities like Tokyo are among the most affordable in the developed world.
But praise for Japanese zoning skirts an important meta question: Why did U.S. zoning end up so much more restrictive than Japanese zoning? To frame the puzzle a different way, why did U.S. and Japanese land-use regulation—which both started off quite liberal—diverge so dramatically in terms of restrictiveness?
I will suggest three factors; the first two set out the “why” for restrictive zoning and the third sets out the “how.” Any YIMBY efforts to liberalize cities in the long term must address these three factors. First, the U.S. privileges real estate as an investment where Japan does not, incentivizing voters to prohibit new supply with restrictive zoning. Second, most public services in the U.S. are administered at the local level, driving local residents to use exclusionary zoning to “preserve” public service quality. Third, the U.S. practice of near-total deference to local land-use planning and widespread use of discretionary permitting creates a system in which local special interests can capture zoning regulation and remake it around their interests."
But praise for Japanese zoning skirts an important meta question: Why did U.S. zoning end up so much more restrictive than Japanese zoning? To frame the puzzle a different way, why did U.S. and Japanese land-use regulation—which both started off quite liberal—diverge so dramatically in terms of restrictiveness?
I will suggest three factors; the first two set out the “why” for restrictive zoning and the third sets out the “how.” Any YIMBY efforts to liberalize cities in the long term must address these three factors. First, the U.S. privileges real estate as an investment where Japan does not, incentivizing voters to prohibit new supply with restrictive zoning. Second, most public services in the U.S. are administered at the local level, driving local residents to use exclusionary zoning to “preserve” public service quality. Third, the U.S. practice of near-total deference to local land-use planning and widespread use of discretionary permitting creates a system in which local special interests can capture zoning regulation and remake it around their interests."