This is a great example of a financial fail. Land use restrictions reduce land value. Seriously, compare property prices per unit lot area in fancy, restricted communities (e.g. Atherton) to neighboring lots in less restricted, less fancy areas (e.g. Menlo Park or Fair Oaks, hah). Land in Atherton is worth less. Which makes sense — you can’t do as much with it.

At best, single family zoning preserves the value of a (depreciating!) house to a limited extent.