New Report: Rezoning Industrial Districts Could Boost Cities' Economies, Relieve Housing Shortages

Analysis identifies industrial zones in five major cities as candidates for redevelopment

New York, NY — As cities across the country face a daunting road to recovery, many of their zoning codes set aside unnecessarily large amounts of land for industrial purposes—making housing less affordable while harming economic growth and tax revenue. In a new report, Connor Harris, fellow at the Manhattan Institute (MI), identifies industrial zones in five major American cities where allowing residential, commercial, or mixed use could improve cities’ economies and fight housing shortages.

Harris identifies several exclusive industrial zones along mass transit lines or near central business districts where cities could welcome more housing. Those areas include:

• San Francisco’s “Production, Distribution, and Repair” districts, which occupy some of the city’s most desirable areas and are located along major transit lines
• New York’s Gowanus neighborhood, currently under consideration for rezoning
• Boston’s “local industrial districts,” several of which bestride major subway routes
• Portland’s 373-acre Central Eastside Industrial District, within walking distance from downtown
• Chicago’s “Planned Manufacturing Districts” located near the central business district

As the report notes, cities have managed to retain strong industrial sectors without exclusive districts. Harris finds that the above zones protect industries that provide little economic value and few well-paying jobs considering the amount of land that they occupy, but show strong signs of market demand for residential or commercial redevelopment. 

“Exclusive industrial zones are often a bad way to promote economic well-being, especially when they occupy central or transit-accessible land," Harris writes. “Re-designation of these areas for dense residential and commercial use—or modern mixed-use developments with high-intensity, low-nuisance industrial activity—could go a long way.”

Click here to read the full report.