Empty storefronts, underused office buildings, and vacant commercial lots are common in many cities. For investors, they can be an opportunity to create housing where demand is strong. The first question is usually whether the zoning will allow it.
This guide walks through when a rezoning is actually needed, what the process looks like, what it tends to cost, and how to protect yourself if you buy a property before the zoning is changed. In many cases, you may find there's a shorter path than a full rezoning.
Can You Change the Zoning of a Property?
Yes. Property owners can apply to their city or county to change a parcel's zoning designation. This is called a rezoning or a zoning map amendment. The final decision is usually made by the city council or county board after a public hearing.
Approval isn't guaranteed. Local officials look at whether the change fits the community's long-term plan, how it affects neighbors, and whether the area can support the new use. That's why it's worth checking your other options first. Our broader guide to rezoning property covers the basics that apply to any zoning change.
Step One: Check Whether You Need to Rezone at All
Before you apply, confirm what the current zoning already allows. Many commercial and mixed-use zones permit apartments above ground-floor retail, and some cities have updated their codes to allow housing in more places.
Several states have also passed laws that allow housing on commercial land without a rezoning. If your property qualifies, you may be able to skip the process entirely.
| State | Law | What It Allows | Key Conditions |
|---|---|---|---|
| California | AB 2011 and SB 6 (effective July 2023) | Housing on many commercial sites without rezoning | Affordability or labor standards depending on the path |
| Florida | Live Local Act (2023, amended 2025) | Multifamily on commercial, industrial, or mixed-use land | At least 40% of units affordable for 30 years |
| Texas | SB 840 (effective Sept. 2025) | Multifamily or mixed-use by right on commercial, office, and retail land | Larger cities only (over 150,000 residents in counties over 300,000) |
| Montana | SB 245 (2023) | Multifamily and mixed-use in commercial zones | Cities with more than 5,000 residents |
Other states have passed similar laws since 2023, so ask your local planning office whether any state rules apply to your parcel.
Alternatives to a Full Rezoning
If residential use isn't allowed outright, a smaller approval may still get you there:
- Conditional or special use permit: allows a use the zone permits only under certain conditions. It's often easier to get than a rezoning.
- Variance: relief from a specific rule, such as a setback or height limit. Use variances (changing what the land is used for) are much harder to obtain, since most states require proof of unnecessary hardship.
- Planned unit development (PUD): a custom set of rules for a larger site, usually negotiated with the city. It's useful for bigger mixed-use projects.
The Rezoning Process, Step by Step
Every city has its own procedure, but most follow a similar order. Here's what to expect, along with typical timing.
| Step | What Happens | Typical Timing |
|---|---|---|
| 1. Pre-application meeting | Meet with planning staff to discuss your idea and any concerns | 2–4 weeks |
| 2. Application and fee | Submit forms, a site plan, and the required fee | 1–2 weeks |
| 3. Staff review and notice | Staff review the request and notify nearby owners | 1–3 months |
| 4. Planning commission hearing | The commission holds a public hearing and makes a recommendation | 1–2 months |
| 5. City council or county board vote | Elected officials make the final decision | 1–2 months |
In total, most rezonings take about 3 to 12 months. Requests that draw neighborhood opposition can take longer. If you're denied, many cities won't let you reapply for the same change for a year.
What It Costs
Application fees vary widely. Chicago charges $1,025 for a zoning map amendment. Charlotte's fiscal year 2026 fee schedule lists $6,095 for a conventional rezoning and more than $11,000 for a conditional one.
The application fee is often the smallest cost. Attorney fees, surveys, traffic studies, and site plans can add thousands more. For a full breakdown, see our guide on how much it costs to rezone a property.
How Hard Is It to Change Zoning From Commercial to Residential?
It depends on three main factors:
- The comprehensive plan. If the city's long-range plan already calls for housing in the area, approval is much more likely.
- Spot zoning concerns. Rezoning one small parcel differently from everything around it can be challenged in court. The UNC School of Government explains how courts weigh these cases.
- Neighbor support. Residential use is often welcome on a struggling commercial corridor, but concerns about traffic, parking, or density can slow things down.
In many markets, rezoning commercial to residential is easier now than it was a decade ago, since cities are looking for ways to add housing.
Tips for Investors
If you'd like to buy a commercial property with plans to convert it, a few steps can help you avoid unnecessary risk:
- Talk to planning staff before you make an offer.
- Make your purchase contingent on zoning approval, with enough time to get through the hearings.
- Budget for holding costs while the application is pending.
- Look for properties that are already vacant or struggling, where owners may welcome a flexible offer.
From here, you can use DealMachine's property data to find vacant commercial buildings and see who owns them. Our guides on finding vacant property and buying foreclosed commercial properties are good next steps. For more ideas on this type of deal, read about investing in vacant and abandoned properties.
Frequently Asked Questions
How long does it take to rezone a property?
Most rezonings take between 3 and 12 months from the first meeting with planning staff to the final vote. Opposition from neighbors or required studies can extend that timeline.
Can I rezone my own property?
Yes. Property owners can apply for a rezoning in most cities and counties. Some investors also apply with the owner's written consent while the property is under contract.
What is the difference between a variance and a rezoning?
A rezoning changes the zoning district for the property. A variance keeps the zoning the same but grants relief from a specific rule, such as a height limit or setback.
Does rezoning increase property value?
It can, especially when the new zoning allows a more valuable or more in-demand use. The actual effect depends on the local market and what the new zoning permits.
What is spot zoning?
Spot zoning happens when a small parcel is rezoned in a way that doesn't match the surrounding area or the comprehensive plan, mainly to benefit one owner. Courts in many states may overturn it.