After decades of disinvestment, American cities are rebounding, but new development is driving up housing costs and displacing lower-income residents. Roughly 500 communities in the United States have developed inclusionary housing policies, which require developers of new market- rate real estate to provide affordable housing. For cities struggling to maintain economic integration, inclusionary housing is one of the most promising strategies available to ensure that the benefits of development are shared widely. But policies must be designed with care to suit local conditions and ensure that requirements do not overburden development. Through a review of the literature and case studies, this report details how local governments have realized the full benefit of inclusionary housing by building public support, using data to inform program design, establishing reasonable expectations for developers, and ensuring long-term program quality.
