Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions

Posted: 4 Apr 2014

See all articles by W. Keener Hughen

W. Keener Hughen

Sacred Heart University

Dustin Read

University of North Carolina (UNC) at Charlotte

Date Written: April 2, 2014

Abstract

Inclusionary housing policies enacted by municipal governments rely on a combination of legal mandates and economic incentives to encourage residential real estate developers to include affordable units in otherwise market-rate projects. These regulations provide a means of stimulating the production of mixed-income housing at a minimal cost to the public sector, but have been hypothesized to slow development and put upward pressure on housing prices. The results of the theoretical models presented in this paper suggest that inclusionary housing policies need not increase housing prices in all situations. However, any observed impact on housing prices may be mitigated by density effects and stigma effects that decrease demand for market-rate units. The results additionally suggest real estate developers are likely to respond to inclusionary housing policies by strategically altering production decisions.

Keywords: Affordable housing; Inclusionary zoning; Residential development; Mixed-income development

Suggested Citation

Hughen, W. Keener and Read, Dustin, Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions (April 2, 2014). Journal of Real Estate Finance and Economics, Vol. 48, No. 4, 2014. Available at SSRN: https://ssrn.com/abstract=2419616

W. Keener Hughen

Sacred Heart University ( email )

5151 Park Ave
Fairfield, CT 06432
United States

Dustin Read (Contact Author)

University of North Carolina (UNC) at Charlotte ( email )

9201 University City Boulevard
Charlotte, NC 28223
United States

Register to save articles to
your library

Register

Paper statistics

Abstract Views
265
PlumX Metrics