'Affordable' Housing Laws Make Homes More Expensive

Economic Education Bulletin, Vol. 28, No. 12, pp. 1-8, December 2003

8 Pages Posted: 18 Sep 2010

See all articles by Benjamin Powell

Benjamin Powell

Texas Tech University - Free Market Institute; Texas Tech University - Rawls College of Business

Edward Peter Stringham

Trinity College

Date Written: 2003

Abstract

Inclusionary zoning ordinances are not an effective way of making housing more affordable. Inclusionary zoning is nothing more than a price control. By diminishing incentives for landowners to provide land for housing and incentives for builders to undertake projects, inclusionary zoning restricts the supply of housing. This drives up the price of all other market-priced homes and makes housing less affordable. Even the few families who do get the price-controlled units do not receive the full benefits of homeownership since their potential appreciation is limited.

Suggested Citation

Powell, Benjamin and Stringham, Edward Peter, 'Affordable' Housing Laws Make Homes More Expensive (2003). Economic Education Bulletin, Vol. 28, No. 12, pp. 1-8, December 2003, Available at SSRN: https://ssrn.com/abstract=1676279

Benjamin Powell

Texas Tech University - Free Market Institute ( email )

Box 45059
Lubbock, TX 79409-5059
United States
806.742.7138 (Phone)
806.742.1854 (Fax)

HOME PAGE: http://www.fmi.ttu.edu

Texas Tech University - Rawls College of Business ( email )

Lubbock, TX 79409
United States
806.834.3097 (Phone)
806.742.1854 (Fax)

Edward Peter Stringham (Contact Author)

Trinity College ( email )

Hartford, CT 06106
United States

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