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New research in International Studies of Economics sheds light on an important but often overlooked driver of racial segregation in housing: minimum lot size zoning policies, or local regulations requiring a minimum amount of land for a property.

The study focused on the impact of minimum lot size regulations in Connecticut towns on the likelihood of ethnic minorities integrating into a community. Investigators found that households with higher incomes are more willing to pay for larger residential lots, reinforcing economic divides, and that Black households (after controlling for income) show a significantly lower willingness to pay for larger lots than white households, highlighting a racial preference effect.

The results indicate that minimum lot size regulations can cause racial segregation not only through income effects but also through voluntary choices by different racial groups.

"Together, these dynamics mean that minimum lot size regulations don't just shape neighborhoods—they entrench segregation. By quantifying this impact at the household level, the research provides robust, data-driven evidence that these common land use policies have far-reaching social consequences," said corresponding author Ling Huang, Ph.D., of the University of Connecticut.

"This work is vital for policymakers, urban planners, and housing advocates. It offers a compelling case for reforming zoning laws to promote more equitable and inclusive communities."

Specifically, relaxing minimum lot size regulations and allowing smaller lots could help communities to reduce the extent of racial segregation due to housing policies.