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follow Patrick 2018 Apr 17, 3:09pm
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Bento et al. found that inclusionary zoning in California caused prices to increase 2 to 3 percent faster relative to jurisdictions without the policy. They found that affordable housing mandates decreased the rate of single family home starts, but found no effect on multifamily housing supply. They write, “The results are fully consistent with economic theory and demonstrate that inclusionary zoning policies do not come without costs.”Tom Means and Ed Stringham also measured the effects of inclusionary zoning in California. They found that jurisdictions with inclusionary zoning saw their housing supply reduced by 7 percent and prices increased by 20 percent due to the policy.Schuetz et al. studied inclusionary zoning in two markets. In the Boston region, they found that inclusionary zoning rules reduced construction and caused higher house prices, but only during periods of rising prices. In the Bay Area, they found that inclusionary zoning corresponds with higher house prices during periods of rising rent prices, but that it also contributes to lower rent prices during times of falling average prices. They found no relationship between inclusionary zoning and construction in the Bay Area.While inclusionary zoning provides large benefits for a small number of low- and middle-income households, most empirical evidence indicates that it drives up prices for others and reduces access to housing overall.