There was no zoning at all in the United States when this occurred: https://en.wikipedia.org/wiki/Chicago_real_estate_bubble_of_the_1830s https://en.wikipedia.

There was no zoning at all in the United States when this occurred: https://en.wikipedia.org/wiki/Chicago_real_estate_bubble_of_the_1830s https://en.wikipedia.org/wiki/Chicago_real_estate_bubble_of_... """ As a result of these factors, prices for land in the Chicago Loop rose from essentially nothing in 1830 ($800 per acre in 2012 dollars) to New York levels by 1836 ($327,000 per acre in 2012 dollars), a 40,775% increase, with even higher prices around Dearborn Avenue and the Chicago River.[3] Furthermore, Illinois in general experienced a huge boom in real estate prices and town foundations. Walters estimates that the foundations of 1/3 of all towns ever created in central Illinois occurred between 1835 and 1837.[4] In 1837, there was widespread panic due to credit tightening from England. On May 29, 1837, as depositors began to withdraw money en masse, Illinois banks suspended payments. As these banks fell into bankruptcy, Illinois’ internal improvements, like the canals that were supposed to be financed by the banks, stopped. This led to considerable uncertainty as to Chicago's future, and combined with a general lack of credit, caused Chicago real estate prices to fall approximately 88% from their peak by 1841.[3] """