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How affordable housing mandates make housing more expensive

How affordable housing mandates make housing more expensive

This month the U.S. Supreme Court will decide whether to hear a legal challenge to San Jose's controversial inclusionary housing ordinance. Enacted in 2010 and upheld by California's top court in June, this zoning law requires housing developers of 20 or more units to sell 15% of them at prices far below their market value or pay a six-figure fee instead.

More than 170 California communities impose similar mandates and set-asides, but the net effect isn't more affordable housing for all. Rather it is a reduction in the construction of new homes, which pushes prices upward.

This is hardly a solution to a housing affordability crisis. It's also...

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