The house I'm in the process of buying has no HOA, and Houston has pretty much no zoning either. My old house had a cabinetry shop next door and a artists' commune around the corner (for metal working / welding artists). This is the sort of thing that makes Houton quirky but cool. Sure, loony-tunes neighbors can and do happen, but you do have things like noise ordinances and whatnot to keep them at least partially in check.

How do they keep things from going completely bonkers? Deed restrictions. These were originally invented as a legal mechanism to keep black people from moving into white neighborhoods. These days, deed restrictions tend to say things like how far back your house needs to be from the street and whether you can have more than one dwelling on a given piece of property. When a large enough percentage of the people who own property on a given block agree to a deed restriction, it then becomes official.

In the Houston suburbs, it's a completely different world. They have the kinds of restrictive HOAs with big binders listing the restrictions on what colors you can paint your house and whatnot. I'm happy not to live out there, although the temptation is quite strong from a financial perspective.

I find it amusing that HOAs justify their rules on the basis of protecting resale value, when suburban real-estate doesn't tend to appreciate much, if at all. If there's always brand new construction around the corner, "used" houses fall in value just like used cars.

P.S. Lectric, good one with bringing the mayor out for a visit.