Creating Affordable Housing Out of Thin Air: The Economics of Mandatory Inclusionary Zoning in New York City
This policy brief examines the economic potential of a mandatory inclusionary zoning policy to produce new affordable units tied to upzonings across New York City’s neighborhoods. It finds that a mandatory inclusionary zoning policy in New York City has the potential to produce affordable units in neighborhoods that already command high rent, such as East Harlem. But the city’s low-rent neighborhoods, such as East New York and Jerome Avenue, may not have sufficient market strength to justify high-density mixed-income development without other forms of subsidy. The study considers the role of 421-a, as well as key policy trade-offs including on-site vs. off-site, depth of affordability, and permanent affordability. View the white paper, press release, and briefing presentation deck.