Q: Do inclusionary housing requirements make housing prices go up for everyone else?

A simple drawing of a balanced scale has a blue house labeled "before inclusionary requirements" on one side and a red house labeled "after inclusionary requirements" on the other side. Text above reads Do inclusionary housing requirements make housing prices go up for everyone else? No! followed by discussion. Image links to pdf version.

2 COMMENTS

  1. As with most things, the devils (and the angels) are in the details. Inclusionary Zoning can be implemented to compensate developers for the lost-profit (and higher regulatory costs) associated with mandatory affordable units — or not.

    Typically, inclusionary zoning (IZ) requirements kick in on developments that exceed a certain number of units. If the IZ requirements are onerous and they are applied to projects that exceed 10 units, one might find that suddenly there are more projects for 9 units. If the nature of the IZ requirements causes developers to restrict the number of units that they build, the end result might be counter-productive. So, pay attention to the details of the IZ program and do the math.

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