How to make mixed-use the default in residential neighborhoods
October 26, 2025
123 Over the years, we've spoken a lot about the benefits of cities permitting small-scale commercial uses in residential neighborhoods.
They increase overall urban vibrancy. They promote local consumption (reducing the need for people to do things like drive). And they can help reduce the barriers to entry for small businesses. These spaces tend to be more cost-effective and, in some cases, like here and here, they are spaces that the homeowner already owns.
But there are some important objections to consider. Perhaps the most common one is this: What happens if my neighbor opens a 24-hour taco stand next door? I'm fairly confident that I could single-handedly keep a taco stand in business if it opened up next to me — what an amenity — but I get the concern. It's a legitimate one.
In this part of the world, we have typically responded to this concern by restricting uses. We have thrown the baby out with the bathwater by saying, "Nope, restaurants aren't allowed, because there's a chance it could be a 24-hour taco stand and that might annoy people."
But there are alternatives.
Japan's land-use approach, for example, is (1) generally focused on what you can do (versus what you can't do) and (2) organized around intensity and nuisance. I've never developed in Japan and I don't know the exact nuances of their policy framework, but directionally I think it's an interesting way to moderate this land-use consideration.
An accountant who wants to hang a shingle is different from a coffee shop that's only open from 8am to 3pm (and doesn't have a commercial kitchen), and a coffee shop is different from Peggy Gou DJ'ing next door at an all-night taco bar. But they are all non-residential uses, and that makes them illegal in many/most residential neighborhoods.
Thinking in terms of an intensity gradient is one way to create more mixed-use communities, while at the same time respecting the local context.
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