Skip to Content (custom)

    Zoning-Out: Upzoning Appraising - Using Highest & Best Use Analysis

    Single-family residential zoning in America is under attack! Cities across the U.S. are facing a shortage of affordable housing. As a result, housing advocates, builders, realtors, policy makers, and legislators a forming an unlikely alliance to promote a solution. This alliance’s solution is legislation to increase density in core cities across the country.


    This legislative movement is commonly called upzoning, although it has other names as well.  The legislation upends 100 years of land use and zoning laws and has a profound impact on how appraisers perform many aspects of the appraisal process. Upzoning seeks to either eliminate or dramatically reduce the number of parcels that are available for only single-family residential use. And it is popping up all over the country from Austin, TX to Washington State.  


    While not a new idea, upzoning is gaining popularity in the U.S. Historically, in the mid-late 19th century, many households resided under one roof. This was especially true for the wealthy, that had a primary dwelling, as well as one or more ancillary dwellings to house servants. These ancillary dwellings were known then by many names, carriage houses, garden suites, mother-inlaw, granny-flats, and dawdy houses to name a few. In the 20th century as demographics shifted from multi-family living to single-family living, land use and zoning was created to consolidate and enforce single family living. Like most things in life, if you live long enough you’ll discover that most trends are cyclic in nature, and thus now the push for multi-family living again.  


    This session introduces the concepts of upzoning, and how this legislation impacts the appraisal process. Intended and unintended consequences of upzoning are discussed. Highest & Best Use (HBU) analysis related to upzoning appraising is presented. And finally, there is a discussion of workfile related issues with regards to upzoning HBU analysis. This session is a must for those appraisers that want to continue to produce credible reports.

    Course Offerings
    Sponsor Date Location Format
    North Star Chapter April 24, 2025 Maple grove, MN Classroom View Details Register