The Data is In: Inclusionary Zoning is Killing Starter Homes. Conversation with Jason Sorens

As someone who advocates for affordable housing, I am having a hard time processing this data—but it is officially in, and it’s a massive reality check.

 

Economist Jason Sorens has done extensive modeling on New Jersey’s housing landscape and found that Mount Laurel and inclusionary zoning mandates have had a 0% net impact on increasing overall housing supply or lowering housing costs. While the policy successfully produces a small number of deed-restricted units, it also creates an overwhelming lottery system and a devastating consequence for the middle of the market. When developers have to cross-subsidize the below-market units, the middle is financially impossible. The only projects that survive the math are either hyper-luxury developments with a small inclusionary component or projects that are in some form publicly funded.

    So, what do we do next?

In this episode, we dive into solutions for moving past ineffective mandates to unlock naturally occurring, truly affordable home development. Reduced minimum lot sizes for starter home subdivisions, legalized "by-right" infill density, pre-approved architectural plans, private inspections, and eliminated parking minimums are all being tested successfully around the country. It’s time to talk about how these diverse typologies can count toward the noble goal of creating realistic opportunities to build homes for the lower and middle-income strata of our communities.