Inclusionary Zoning Policy Could Exacerbate Affordability Crisis

A report written by San Jose State University economics professors contends that new zoning rules requiring builders to sell dwellings at below-market prices will likely squelch residential construction.

1 minute read

April 15, 2004, 10:00 AM PDT

By C. Scott Smith


"The 44-page study which examines inclusionary zoning in the nine-county Bay Area...was funded by a building industry grant and published by the Reason Public Policy Institute, a Los Angeles think tank promoting libertarian and free market principles...

The report's authors say increasing the overall supply by removing ordinances that block residential building is a more efficient tactic than inclusionary zoning, which has produced fewer than 7,000 units in the Bay Area in the past 30 years. In theory, higher and middle-income consumers would move into the additional new homes, freeing up existing homes for less-wealthy consumers."

Thanks to C. Scott Smith

Thursday, April 15, 2004 in The San Francisco Chronicle

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