Residential Upzoning: New Challenges and Opportunities for Residential Appraisers

Affordable housing has become a widespread issue across the U.S., not just in coastal cities. Governments are responding with policies aimed at increasing housing supply and lowering costs. In areas with limited developable land—especially urban and suburban communities—one solution is upzoning, which allows for higher housing density on existing sites without needing more land. 

For instance, a property zoned for one unit (R-1) may now be allowed to have multiple units due to an upzoning overlay. While this is efficient from a policymaker's standpoint, it presents new challenges for residential appraisers. A property’s highest and best use might shift from single-family to multi-unit development, requiring appraisers to adapt. 

Residential Upzoning: New Challenges and Opportunities for Residential Appraisers explores how appraisers can handle these changes. It emphasizes refining core skills like market analysis and site valuation and explains how appraisers can remain compliant with USPAP standards—even when potential development exceeds the 4-unit residential license limit—by determining feasibility and stopping the assignment if necessary.