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Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States

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  • Jenny Schuetz

    (Jenny Schuetz is in the School of Policy, Planning and Development, University of Southern California, 650 Childs Way, RGL 224, Los Angeles, California, 90089, USA. E-mail: jschuetz@sppd.usc.edu)

  • Rachel Meltzer

    (Rachel Meltzer is in the Milano School for Management and Urban Policy, The New School, 72 Fifth Avenue, New York, NY 10011, USA, meltzerr@newschool.edu)

  • Vicki Been

    (Vicki Been is in the School of Law, New York University, New York, USA, vicki.been@nyu.edu)

Abstract

Many local governments are adopting inclusionary zoning (IZ) as a means of producing affordable housing without direct public subsidies. In this paper, panel data on IZ in the San Francisco metropolitan area and suburban Boston are used to analyse how much affordable housing the programmes produce and how IZ affects the prices and production of market-rate housing. The amount of affordable housing produced under IZ has been modest and depends primarily on how long IZ has been in place. Results from suburban Boston suggest that IZ has contributed to increased housing prices and lower rates of production during periods of regional house price appreciation. In the San Francisco area, IZ also appears to increase housing prices in times of regional price appreciation, but to decrease prices during cooler regional markets. There is no evidence of a statistically significant effect of IZ on new housing development in the Bay Area.

Suggested Citation

  • Jenny Schuetz & Rachel Meltzer & Vicki Been, 2011. "Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 297-329, February.
    • Handle: RePEc:sae:urbstu:v:48:y:2011:i:2:p:297-329
    DOI: 10.1177/0042098009360683
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    References listed on IDEAS

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    Cited by:

    1. W. Hughen & Dustin Read, 2014. "Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions," The Journal of Real Estate Finance and Economics, Springer, vol. 48(4), pages 589-610, May.
    2. Gurran, Nicole & Gilbert, Catherine & Gibb, Kenneth & van den Nouwelant, Ryan & James, Amity & Phibbs, Peter & Hayward, Richard Donald, 2018. "Supporting affordable housing supply: inclusionary planning in new and renewing communities," SocArXiv 3mj8c, Center for Open Science.
    3. Diagne, Adji Fatou & Kurban, Haydar & Schmutz, Benoit, 2018. "Are inclusionary housing programs color-blind? The case of Montgomery County MPDU program," Journal of Housing Economics, Elsevier, vol. 40(C), pages 6-24.

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