The invisible hand of zoning
By : J. David Chapman/August 28, 2025
When most people think of real estate, they think of bricks and mortar. They picture homes, shopping centers, or office towers. What they rarely notice is the invisible hand guiding how—and where—those buildings come to be. That hand is zoning.
Zoning ordinances are the rulebook of a city. They determine whether land is residential or commercial, how tall a building can rise, how close it can sit to the street, and even how many parking spaces must be provided. It may sound dry, but these quiet regulations have more influence over our daily lives than almost anything else city hall does.
Think about your favorite downtown street. Chances are it has buildings that hug the sidewalk, storefronts that invite you in, and maybe apartments above retail. That’s no accident. At some point, a zoning decision—or an exception to a zoning rule—made that streetscape possible. It could be that the zoning requirements are too restrictive, making the project unfeasible.
During my time on city council, I watched developers, neighbors, and staff wrestle with zoning questions that, on the surface, looked technical but in reality, were deeply personal. Should we allow taller buildings downtown? Should a quiet street stay single-family, or can it support duplexes or townhomes? Should a vacant strip mall be repurposed into apartments? Each vote carried a message about who we wanted to be as a community.
Zoning also shapes the economy. In Oklahoma, where cities rely heavily on sales tax and not property tax, priority often goes to uses that generate sales revenue. A height restriction might block the creation of much-needed housing. Conversely, a well-placed zoning overlay can unlock new development, spur investment, and breathe life into a struggling area.
The invisible hand of zoning is never neutral. It either nudges us toward vibrancy, density, and opportunity—or it holds us back, clinging to a past that no longer fits today’s needs. That’s why citizens should pay attention. Zoning isn’t just about lines on a map. It’s about the kind of city we hand down to the next generation.
I am thankful for those—elected or appointed—who take on the responsibility of making these difficult decisions, whether popular or not. Their work, often unseen, is what ultimately shapes the places we call home.
J. David Chapman, Ph.D., is chair of finance & professor real estate at The University of Central Oklahoma (jchapman7@uco.edu).