What role do local governments play in real estate development?

Local governments play a crucial role in real estate development primarily through the establishment of zoning laws and building regulations. Zoning laws dictate how land can be used in different areas, determining whether it is designated for residential, commercial, industrial, or mixed-use purposes. This regulation helps to ensure orderly development within a community, protecting property values and the interests of residents. Furthermore, building regulations set standards for construction practices, safety, and environmental considerations, ensuring that buildings are safe and meet the community's standards. These regulations significantly impact what types of development can occur, guiding developers in their projects and addressing community needs and concerns effectively.

While other options like providing loans or appraising properties may involve local governments to some extent, they are not primary roles related to real estate development. Property tax assessments are typically handled at the county level and are focused more on tax collection than on directly impacting the development process itself.