Inclusionary Zoning: How Different IZ Policies Affect Tenant, Landlord, and Developer Behaviors

Overview

This study investigates the effects of inclusionary zoning (IZ) policies on the behaviors of tenants, landlords, and developers, highlighting the impact of the United States' ongoing housing affordability crisis, which has been worsened by the COVID-19 pandemic. The research focuses on how IZ policies are implemented across different communities and how they influence housing development dynamics.

Key Findings

• Skepticism on IZ Effectiveness: Many stakeholders, including housing advocates, policymakers, and developers, express doubt about IZ's ability to generate sufficient affordable housing.

• Complexity and Loopholes: The complexity of IZ policies, including loopholes and inconsistent application, can impede the production of affordable housing and fail to adequately adjust land prices to reflect policy goals.

• Dependency on Market Conditions: The success of IZ policies is highly contingent on broader housing market economics, such as market conditions and construction costs, which affect the feasibility of affordable housing developments.

Implications for Policy and Practice:

• Policy Simplification: The study highlights the importance of clear and consistent IZ policies to balance the demand for affordable housing with the realities of economic development. Simplifying IZ regulations may enhance the effectiveness of these policies and support equitable housing development, aiding efforts to address the growing housing affordability crisis.