Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions

Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions 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. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Journal of Real Estate Finance and Economics Springer Journals

Inclusionary Housing Policies, Stigma Effects and Strategic Production Decisions

22 pages
Read Article

Loading next page...
 
/lp/springer-journals/inclusionary-housing-policies-stigma-effects-and-strategic-production-p2eULePmfe
Publisher site
See Article on Publisher Site

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.

Journal

The Journal of Real Estate Finance and Economics – Springer Journals

Published: Feb 7, 2013

References

  • Open space, residential property values, and spatial context
    Anderson, ST; West, SE
  • Housing market effects of inclusionary zoning
    Bento, A; Lowe, S; Knapp, GJ; Chakraborty, A
  • The inclusionary housing debate: the effectiveness of mandatory programs over voluntary programs
    Brunick, N
  • Inclusionary zoning: proven success in large cities
    Brunick, N
  • Irreversible investment, real options, and competition: evidence from real estate development
    Bulan, L; Mayer, C; Somerville, CT
  • The stochastic city
    Capozza, DR; Helsley, RW
  • The intensity and timing of investment: the case of land
    Capozza, DR; Li, Y
  • Optimal land development decisions
    Capozza, DR; Li, Y
  • Optimal valuation of claims on noisy real assets: theory and an application
    Childs, PD; Ott, SH; Riddiough, TJ
  • The impact of inclusionary zoning on the location and type of construction activity
    Clapp, JM
  • Empirical estimation of the option premium for residential redevelopment
    Clapp, JM; Bardos, KS; Wong, SK
  • Growth controls, real options and local development
    Cunningham, C
  • Can inclusionary zoning be an effective and efficient housing policy? Evidence from Los Angeles and Orange County
    Das, A
  • The external effects of place-based subsidized housing
    Ellen, IG; Schwartz, AE; Voicu, I; Schill, MH
  • Does federally subsidized rental housing depress neighborhood property values?
    Ellen, IG; Schwartz, AE; Voicu, I; Schill, MH
  • The irony of inclusionary zoning
    Ellickson, RC
  • Neighbourhood valuation effects from new construction of low-income tax credit projects in Iowa: a natural experiment
    Funderburg, R; MacDonald, H
  • The value of open spaces in residential land use
    Geoghegan, J
  • Metropolitan-specific estimates of the price elasticity of supply of housing, and their sources
    Green, RK; Malpezzi, S; Mayo, SK
  • The strategic exercise of options; Development cascades and overbuilding in real estate markets
    Grenadier, SR
  • Information revelation through option exercise
    Grenadier, SR
  • Living in a mixed-income development: resident perceptions of the benefits and disadvantages of two developments in Chicago
    Joseph, M; Chaskin, R
  • Time to build, option value, and investment decisions
    Majd, S; Pindyck, RS
  • The long-run price elasticity of supply of new residential construction in the United States and the United Kingdom
    Malpezzi, S; Maclennan, D
  • Land use regulations and new construction
    Mayer, CJ; Somerville, CT
  • In search of refinement without exclusiveness: inclusionary zoning in Highland Park, Illinois
    Nirider, LH
  • Optimal phasing and inventory decisions for large scale residential development projects
    Ott, SH; Hughen, WK; Read, DC
  • The structure and potential economic effects of inclusionary zoning ordinances
    Read, DC
  • 31 flavors of inclusionary zoning: comparing policies from San Francisco, Washington, DC and Suburban Boston
    Schuetz, J; Meltzer, R; Been, V
  • Silver bullet or Trojan horse? The effects of inclusionary zoning on local housing markets in the United States
    Schuetz, J; Meltzer, R; Been, V
  • Mixed-income housing: unanswered questions
    Schwartz, A; Tajbakhsh, K
  • An empirical examination of the timing of land conversions in the presence of farmland preservation programs
    Towe, CA; Nickerson, CJ; Bockstael, N
  • Landscape preferences and patterns of residential development
    Turner, MA
  • Attracting middle-income families in the Hope VI public housing revitalization program
    Varady, DP; Raffel, JA; Sweeney, S; Denson, L
  • Equilibrium real options exercise strategies with multiple planers: the case of real estate markets
    Wang, K; Zhou, Y
  • Real estate development as an option
    Williams, JT
  • Redevelopment of real estate
    Williams, JT

You’re reading a free preview. Subscribe to read the entire article.

Try 2 weeks free now

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

or browse the journals available

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off

Sign up
for free
Start 14 day
Free Trial