Summary: National Center for Smart Growth Research and Education
Prepared by the National Center for Smart Growth Research and
Education with funding from the National Association of Home Builders.
Contributing authors: Gerrit-Jan Knaap, Antonio Bento, Scott Lowe
Housing Market Impacts of Inclusionary Zoning Programs
Many communities across the country face affordable housing challenges. An increasing
number of communities are considering inclusionary zoning as a response. Inclusionary zoning
programs, which require developers to sell a certain percentage of newly developed housing
units at below market rates to lower income households, are politically attractive because they
are viewed as a way to promote housing affordability without raising taxes or using public funds.
Standard economic theory, however, suggests that such programs act like a tax on housing
construction. And just like other taxes, the burdens of inclusionary zoning are passed on to