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Social and Behavioral Sciences Commons

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Economics

CMC Senior Theses

2024

Affordable Housing

Articles 1 - 1 of 1

Full-Text Articles in Social and Behavioral Sciences

Do Inclusionary Zoning Ordinances Restrict Housing Supply: An Instrumental Variable Approach Using Evidence From California, Liam James Jan 2024

Do Inclusionary Zoning Ordinances Restrict Housing Supply: An Instrumental Variable Approach Using Evidence From California, Liam James

CMC Senior Theses

Do inclusionary zoning (IZ) ordinances restrict the supply of housing, putting undue upward pressure on prices? Using an improved version of the California Coalition of Rural Housing database, we use OLS and 2SLS methods to estimate the effect of IZ policies on supply. In demonstrating the endogeneity of OLS, we address this concern through the use of differences in two-party voter registration as an instrument for the presence of an inclusionary zoning ordinance. We find no evidence consistent with a clear restrictive effect of these policies.