A policy that's supposed to create more affordable housing often backfires, leaving cities with higher home prices and rents. There's a way to fix that.

Inclusionary zoning is designed to boost the production of affordable housing by requiring or incentivizing developers to build a certain number of below-market-rate units.

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• Inclusionary zoning policies can backfire, leading to fewer homes and higher housing costs.
• A new study suggests ways to optimize inclusionary zoning for affordable housing.
• But direct housing subsidies, like vouchers, can be more effective and flexible.

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