The Impacts of Inclusionary Zoning on Housing Supply: Comparing Inclusionary Zoning Programs in North America

The impacts of inclusionary zoning policies on housing supply are not clear. Multiple political and economic factors (i.e., housing market strength, municipal incentives) make measuring the effects of inclusionary zoning on housing supply difficult. This paper seeks to build upon contemporary research which suggests possible ways that inclusionary zoning policy may alter regional housing supply. It uses comparative case study analysis of programs in Portland, Oregon, and New York City, New York to determine how demographics, total stock, tenure options and housing market conditions are impacted after the adoption of inclusionary zoning policies. Detailed literature and case studies show that there may be slight adverse effects on housing supply and prices, meaning that the cost of delivering affordable housing through inclusionary zoning negatively impacts housing supply. The results of the research are used to shape recommendations for ongoing implementation of inclusionary zoning in Toronto, Ontario.