Promoting Housing Construction Through Local Zoning Preemption and Development Incentives

Research shows that areas with relaxed land-use regulations to allow for greater density may not necessarily experience more housing construction in the short term but are eventually likely to grow. However, there is no consensus in the research as to whether these zoning changes produce statistically significant changes to housing stock and affordability.

Even if a zoning regulatory change increases the housing supply, prices may not fall (or stop rising) in certain rezoned areas.

The increase in rental housing supply occurs primarily in rental units with higher incomes over the short and medium term once zoning reforms have passed. Units affordable to those with low and very low incomes have not experienced statistically significant increases.

The benefits of wide-ranging zoning reforms are often not as large as expected, and many times the reforms do not yield more affordable housing for low-income households. However, zoning reforms that impose increased regulations, or downzoning, have been proven to limit construction and worsen affordability.

Also Read: Shelter Design and Development in Cambodia Guideline for On-site Upgrading of Temporary Settlements