Introducing Zoning Signal: A Game-Changer for Real Estate Investments
We are automatically tracking zoning changes and their impact on real estate investments.
Between 2023 and 2024, 5,627 properties in the City of Miami experienced zoning changes that affected their potential buildable area.
I'm excited to introduce Zoning Signal, an algorithm we've developed to analyze zoning yields before and after municipal zoning changes. Cities update their zoning regulations at least twice a year, which can significantly impact what can be built on a property—and, ultimately, its value.
Key Metrics Tracked by Zoning Signal
What Does Zoning Signal Track?
We focus on five key metrics that influence buildable area:
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District Name Change: A change in zoning classification that can redefine development possibilities.
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Building Height: Adjustments to the maximum allowable height of buildings.
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Number of Floors: Changes in the permitted number of stories.
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Lot Coverage: Modifications to the percentage of a lot that can be built upon.
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Floor Area Ratio (FAR): Alterations in the ratio of a building's total floor area to the size of its lot.
By embedding zoning logic into every property, Zoning Signal detects when municipal rule changes affect buildable areas and identifies which metric is responsible.
Gaining an Early Advantage in the Market
Understanding which properties are impacted by zoning changes offers a significant market advantage. Early awareness allows investors and developers to capitalize on opportunities before the broader market catches on. Neighborhoods undergoing zoning changes often see an increase in property values as new development potentials emerge.
This post kicks off a series where we'll dive deeper into each type of change detected. We'll explore the consequences and potential effects on property values, helping you stay ahead in the ever-evolving real estate landscape.
Accompanying Image: A visual map highlighting all properties affected by zoning changes in Miami between 2023 and 2024.
