Effects of Rent Control and Inclusionary Zoning on Housing Affordability and Access to Opportunity for Low Income Households and People of Color
The US is facing a housing affordability crisis that continues to exacerbate economic and racial inequities. Inclusionary zoning policies (IZ), which require real estate developers to include below market-rate units in new housing projects, and rent control regulations, which place caps on rental price increases, have reemerged as potential solutions to the housing affordability crisis. However, rent control and IZ policies are complicated and controversial. Studies generally find that rent control decreases rents for tenants in controlled units, but that these benefits may be offset by greater costs in the uncontrolled rental market. Likewise, while there is some evidence that IZ policies can provide economic opportunity for residents with low incomes, critics argue that they also reduce the overall supply of housing and serve as a short-term solution to the larger problem.