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Economics of Inclusionary Housing

Municipalities considering inclusionary housing policies may be concerned that they will inhibit development, but research shows that’s not the case.

This Resource at a Glance

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Key take-aways:

  • 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 will likely not affect price at all.
  • There is no credible evidence to suggest that inclusionary housing policies lead to reduced production of new market-rate housing.

This bundle of resources contains two policy briefs and a literature review.

“Economics of Inclusionary Housing Policies: Effects on Housing Prices” is a six-page policy brief that addresses whether the price of market-rate housing will increase if a city implements an inclusionary housing policy.

“Economics of Inclusionary Housing Policies: Effects on Housing Production” is a four-page policy brief that examines whether inclusionary housing policies slow or stop the production of new market-rate homes.

“Economics of Inclusionary Housing Policies and Impact Fees: A Literature Review” is a four-page list that summarizes peer-reviewed studies and academic articles from the economics and planning literature relevant to inclusionary housing policies.


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