IDEAS home Printed from https://ideas.repec.org/a/sae/urbstu/v48y2011i2p297-329.html
   My bibliography  Save this article

Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States

Author

Listed:
  • Jenny Schuetz

    (Jenny Schuetz is in the School of Policy, Planning and Development, University of Southern California, 650 Childs Way, RGL 224, Los Angeles, California, 90089, USA. E-mail: jschuetz@sppd.usc.edu)

  • Rachel Meltzer

    (Rachel Meltzer is in the Milano School for Management and Urban Policy, The New School, 72 Fifth Avenue, New York, NY 10011, USA, meltzerr@newschool.edu)

  • Vicki Been

    (Vicki Been is in the School of Law, New York University, New York, USA, vicki.been@nyu.edu)

Abstract

Many local governments are adopting inclusionary zoning (IZ) as a means of producing affordable housing without direct public subsidies. In this paper, panel data on IZ in the San Francisco metropolitan area and suburban Boston are used to analyse how much affordable housing the programmes produce and how IZ affects the prices and production of market-rate housing. The amount of affordable housing produced under IZ has been modest and depends primarily on how long IZ has been in place. Results from suburban Boston suggest that IZ has contributed to increased housing prices and lower rates of production during periods of regional house price appreciation. In the San Francisco area, IZ also appears to increase housing prices in times of regional price appreciation, but to decrease prices during cooler regional markets. There is no evidence of a statistically significant effect of IZ on new housing development in the Bay Area.

Suggested Citation

  • Jenny Schuetz & Rachel Meltzer & Vicki Been, 2011. "Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets in the United States," Urban Studies, Urban Studies Journal Limited, vol. 48(2), pages 297-329, February.
    • Handle: RePEc:sae:urbstu:v:48:y:2011:i:2:p:297-329
    DOI: 10.1177/0042098009360683
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0042098009360683
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0042098009360683?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Charles J. Delaney & Marc T. Smith, 1989. "Impact Fees and the Price of New Housing: An Empirical Study," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 17(1), pages 41-54, March.
    2. Burge, Gregory & Ihlanfeldt, Keith, 2006. "Impact fees and single-family home construction," Journal of Urban Economics, Elsevier, vol. 60(2), pages 284-306, September.
    3. Mayer, Christopher J. & Somerville, C. Tsuriel, 2000. "Land use regulation and new construction," Regional Science and Urban Economics, Elsevier, vol. 30(6), pages 639-662, December.
    4. Brueckner, Jan K., 1997. "Infrastructure financing and urban development:: The economics of impact fees," Journal of Public Economics, Elsevier, vol. 66(3), pages 383-407, December.
    5. Jeffrey I. Rubin & Joseph J. Seneca & Janet G. Stotsky, 1990. "Affordable Housing and Municipal Choice," Land Economics, University of Wisconsin Press, vol. 66(3), pages 325-340.
    6. John M. Quigley & Steven Raphael, 2004. "Is Housing Unaffordable? Why Isn't It More Affordable?," Journal of Economic Perspectives, American Economic Association, vol. 18(1), pages 191-214, Winter.
    7. Michelle Norris & Patrick Shiels, 2007. "Housing affordability in the Republic of Ireland: Is planning part part of the problem or part of the solution?," Open Access publications 10197/5274, Research Repository, University College Dublin.
    8. Katz, Lawrence & Rosen, Kenneth T, 1987. "The Interjurisdictional Effects of Growth Controls on Housing Prices," Journal of Law and Economics, University of Chicago Press, vol. 30(1), pages 149-160, April.
    9. Stephen Malpezzi & Richard K. Green, 1996. "What Has Happened to the Bottom of the US Housing Market?," Urban Studies, Urban Studies Journal Limited, vol. 33(10), pages 1807-1820, December.
    10. Henry O. Pollakowski & Susan M. Wachter, 1990. "The Effects of Land-Use Constraints on Housing Prices," Land Economics, University of Wisconsin Press, vol. 66(3), pages 315-324.
    11. Edward L. Glaeser & Joseph Gyourko & Raven E. Saks, 2005. "Why Have Housing Prices Gone Up?," American Economic Review, American Economic Association, vol. 95(2), pages 329-333, May.
    12. Jenny Schuetz, 2009. "No renters in my suburban backyard: Land use regulation and rental housing," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 28(2), pages 296-320.
    13. Ihlanfeldt, Keith R. & Shaughnessy, Timothy M., 2004. "An empirical investigation of the effects of impact fees on housing and land markets," Regional Science and Urban Economics, Elsevier, vol. 34(6), pages 639-661, November.
    14. Hughes, Mark Alan & McGuire, Therese J., 1991. "A market for exclusion: Trading low-income housing obligations under Mount Laurel III," Journal of Urban Economics, Elsevier, vol. 29(2), pages 207-217, March.
    15. Jenny Schuetz, 2008. "Guarding the Town Walls: Mechanisms and Motives for Restricting Multifamily Housing in Massachusetts," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 36(3), pages 555-586, September.
    16. John M. Clapp, 1981. "The Impact of Inclusionary Zoning on the Location and Type of Construction Activity," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 9(4), pages 436-456, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Diagne, Adji Fatou & Kurban, Haydar & Schmutz, Benoit, 2018. "Are inclusionary housing programs color-blind? The case of Montgomery County MPDU program," Journal of Housing Economics, Elsevier, vol. 40(C), pages 6-24.
    2. Gurran, Nicole & Gilbert, Catherine & Gibb, Kenneth & van den Nouwelant, Ryan & James, Amity & Phibbs, Peter & Hayward, Richard Donald, 2018. "Supporting affordable housing supply: inclusionary planning in new and renewing communities," SocArXiv 3mj8c, Center for Open Science.
    3. W. Hughen & Dustin Read, 2014. "Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions," The Journal of Real Estate Finance and Economics, Springer, vol. 48(4), pages 589-610, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jenny Schuetz & Rachel Meltzer & Vicki Been, 2009. "Silver Bullet or Trojan Horse? The Effects of Inclusionary Zoning on Local Housing Markets," Working Paper 8519, USC Lusk Center for Real Estate.
    2. Sims, Katharine R.E. & Schuetz, Jenny, 2009. "Local regulation and land-use change: The effects of wetlands bylaws in Massachusetts," Regional Science and Urban Economics, Elsevier, vol. 39(4), pages 409-421, July.
    3. John Landis & Vincent J. Reina, 2021. "Do Restrictive Land Use Regulations Make Housing More Expensive Everywhere?," Economic Development Quarterly, , vol. 35(4), pages 305-324, November.
    4. Changhoon Jung & Chul-Young Roh & Younguck Kang, 2009. "Longitudinal Effects of Impact Fees and Special Assessments on the Level of Capital Spending, Taxes, and Long-Term Debt in American Cities," Public Finance Review, , vol. 37(5), pages 613-636, September.
    5. Gyourko, Joseph & Molloy, Raven, 2015. "Regulation and Housing Supply," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 1289-1337, Elsevier.
    6. Darcy Rollins & Alicia Sasser & Robert Tannenwald & Bo Zhao, 2006. "The lack of affordable housing in New England: how big a problem?: why is it growing?: what are we doing about it?," New England Public Policy Center Working Paper 06-1, Federal Reserve Bank of Boston.
    7. Burge, Gregory, 2014. "The capitalization effects of school, residential, and commercial impact fees on undeveloped land values," Regional Science and Urban Economics, Elsevier, vol. 44(C), pages 1-13.
    8. Lönnroth, Tea & Krigsholm, Pauliina & Falkenbach, Heidi & Oikarinen, Elias, 2024. "Advancing understanding of the linkages between local land policy interventions and the responsiveness of housing supply: Intervention mechanisms in the Finnish context," Land Use Policy, Elsevier, vol. 141(C).
    9. Jackson, Kristoffer, 2016. "Do land use regulations stifle residential development? Evidence from California cities," Journal of Urban Economics, Elsevier, vol. 91(C), pages 45-56.
    10. Joseph Gyourko & Albert Saiz & Anita Summers, 2008. "A New Measure of the Local Regulatory Environment for Housing Markets: The Wharton Residential Land Use Regulatory Index," Urban Studies, Urban Studies Journal Limited, vol. 45(3), pages 693-729, March.
    11. Elliot Anenberg & Edward Kung, 2018. "Can More Housing Supply Solve the Affordability Crisis? Evidence from a Neighborhood Choice Model," Finance and Economics Discussion Series 2018-035, Board of Governors of the Federal Reserve System (U.S.).
    12. Christian A. L. Hilber, 2017. "The Economic Implications of House Price Capitalization: A Synthesis," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 45(2), pages 301-339, April.
    13. Adam Found, 2021. "Development Charges and Housing Affordability: A False Dichotomy?," IMFG Papers 56, University of Toronto, Institute on Municipal Finance and Governance.
    14. Jae Kim & Geoffrey Hewings, 2013. "Land use regulation and intraregional population–employment interaction," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 51(3), pages 671-693, December.
    15. Matthias Cinyabuguma & Virginia McConnell, 2013. "Urban Growth Externalities And Neighborhood Incentives: Another Cause Of Urban Sprawl?," Journal of Regional Science, Wiley Blackwell, vol. 53(2), pages 332-348, May.
    16. Genevieve Giuliano & Jenny Schuetz & Eun Jin Shin, 2016. "Is Los Angeles Becoming Transit Oriented?," Finance and Economics Discussion Series 2016-4, Board of Governors of the Federal Reserve System (U.S.).
    17. Monkkonen, Paavo & Manville, Michael & Lens, Michael, 2024. "Built out cities? A new approach to measuring land use regulation," Journal of Housing Economics, Elsevier, vol. 63(C).
    18. Keith R. Ihlanfeldt, 2004. "Exclusionary Land-use Regulations within Suburban Communities: A Review of the Evidence and Policy Prescriptions," Urban Studies, Urban Studies Journal Limited, vol. 41(2), pages 261-283, February.
    19. Hongwei Dong, 2018. "The impact of income inequality on rental affordability: An empirical study in large American metropolitan areas," Urban Studies, Urban Studies Journal Limited, vol. 55(10), pages 2106-2122, August.
    20. Anenberg, Elliot & Kung, Edward, 2020. "Can more housing supply solve the affordability crisis? Evidence from a neighborhood choice model," Regional Science and Urban Economics, Elsevier, vol. 80(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:urbstu:v:48:y:2011:i:2:p:297-329. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: http://www.gla.ac.uk/departments/urbanstudiesjournal .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.