Inclusionary Housing

This report examined the impacts of inclusionary housing policies on housing markets in California from 1988 to 2005. It found that inclusionary zoning policies had significant and measurable effects on housing markets in jurisdictions that adopt them: the share of multifamily housing increased, the price of single family houses increased, and the size of single family houses decreased. These results are fully consistent with economic theory and demonstrate that inclusionary zoning policies do not come without cost.