Published: May 12, 2016
An analysis of research and empirical data on the viability of inclusionary housing programs finds that such programs can succeed at producing quality affordable housing and do not lead to significant declines in overall housing production or increases in market-rate prices. “Separating Fact from Fiction to Design Effective Programs,” released today by the National Housing Conference, finds that the effectiveness of inclusionary housing programs depends on characteristics of the local economic and housing markets where the program will be implemented.
Some of the most reliable research on the subject suggests that inclusionary housing programs tend to work best in hot housing markets because, by design, they link the production of affordable housing to market-rate housing developments. Furthermore, inclusionary housing programs have minimal or no negative impacts on local housing markets. This analysis finds that inclusionary housing programs are most effective when they are mandatory instead of voluntary and that the programs work better when they include incentives that offset the cost to developers.
Download the report to learn more about key program elements for inclusionary housing.