Keep in mind that he was not operating his business out of his home. His shop is way on the other side of town. Whether or not he wanted to open a 2nd shop out of his house (he has 2 buildings on his property) or not is questionable. I think he just wanted to be able to take out a loan against his house, not necessarily open shop there. Now, granted, what is to keep the next person from coming in and actually setting up a business there......nothing.
He does live on Madison St. It is currently a mix of residential and commercial.