What is zoning in real estate primarily used for?

Zoning in real estate is primarily used for regulating land use and development. This involves creating specific rules and regulations that dictate how properties in certain areas can be used. Zoning laws help control the types of buildings that can be constructed, their height, appearance, density, and the activities that can take place on a property.

Through zoning, local governments aim to promote public welfare, ensure compatibility between different land uses, and protect the character of communities. For instance, zoning can separate residential areas from commercial or industrial zones to prevent conflicts between different types of land uses, such as minimizing noise and traffic disturbances in quiet neighborhoods.

The other options relate to different aspects of real estate but do not directly involve zoning. While property value can be influenced by zoning regulations, it is not the primary purpose of zoning itself. Mortgage interest rates are determined by financial institutions and economic conditions, not zoning laws. Likewise, establishing rental agreements pertains to tenancy laws and rental practices, which operate independently of zoning purposes.