INCLUSIONARY ZONING part 4

INCLUSIONARY ZONING

In Housing Supply and Affordability: Do Affordable Housing Mandates Work?,
published by the Reason Public Policy Institute funded by a grant from the Home Builders Association of Northern California, researchers Benjamin Powell and Edward Stringham found data that suggests Inclusionary Zoning is a failure in Northern California because it:

• Produces few units. “The 50 Bay Area cities with Inclusionary Zoning have produced fewer than 7,000 units.”

• Has high costs. “The total cost for all Inclusionary Units in the Bay Area to date (is) $2.2 billion.

• Makes market-priced homes more expensive. “In high market-rate cities…Inclusionary Zoning adds more than $100,000 to the price of each new home.”

• Restricts the supply of new homes. “In the 33 cities with data for seven years prior and seven years following Inclusionary Zoning, 10,662 fewer homes were produced during the seven years after the adoption of Inclusionary Zoning.”

• Costs government revenue. “The total present value of lost government revenue due to Bay Area Inclusionary Zoning Ordinances is upwards of $553 million.”