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Encore Episode: Inclusionary Zoning with Emily Hamilton
UCLA Housing Voice
Navigating the Tax Landscape of Inclusionary Zoning
An index has been created to analyze the impact of inclusionary zoning on housing markets by assessing the percentage of below market rate units, the income level of households qualifying for these units, and the subsidies such as density bonuses that offset potential taxes. The method reveals varying implications across jurisdictions, with Howard County, Maryland identified as having a mandatory inclusionary zoning program without any density offset, indicating a clear tax burden on housing construction. Conversely, density bonus projects can lead to higher profits by allowing substantial increases in market rate units, while requiring a small percentage of below market units, suggesting that such incentives could make these projects more financially attractive than standard developments without affordable housing components. Exploring the correlation between these zoning scores and median housing prices per square foot in different jurisdictions can provide further insights into the relationship between inclusionary zoning policies and market outcomes.
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