Inclusionary Housing

This briefing paper addresses the question: If cities implement an inclusionary housing policy, will the price of market rate housing increase significantly? It examines economic theory and data from a small number of economic studies and finds that inclusionary housing policies do not increase the price of market rate housing significantly. The available evidence suggests the presence of an inclusionary housing policy may result in an increase in price of new market rate housing by no more than 3 percent—and likely will have no price effect at all.