New NAHB Resource Manual Provides State-by-State Insights on Inclusionary Zoning
NAHB’s latest resource on inclusionary zoning is now available. Prepared by Hinckley, Allen & Snyder LLP, “Policy, Practical, and Legal Challenges to Inclusionary Zoning: A Resource Manual for NAHB Members” provides a list of policy, practical and legal strategies that NAHB members may adopt when dealing with inclusionary zoning proposals, as well as an accessible guide to state statutory and case law authority for municipal or county governments to enact inclusionary zoning ordinances.
“Inclusionary zoning” is defined as any municipal or county ordinance that requires or allows a property owner, builder or developer to restrict the sale or resale price or rent of a specified percentage of residential units in a development as a condition of receiving permission to construct that development. This definition covers both voluntary inclusionary programs — in which the owner/builder/developer has an option to impose price restrictions, usually in return for certain incentives — and mandatory programs — in which the price or rent restrictions are a condition of approval. This definition also includes ordinances that allow payment of a fee as a way to opt out of an inclusionary program.
The primary focus of this paper is state laws and municipal or county ordinances that constitute government intervention in the housing market by imposing limits on maximum rent or price on a certain percentage of proposed residential units.
This report is divided into four parts:
- Research Summary, which explains the methodology;
- Policy, Practical and Legal Challenges to Inclusionary Zoning Proposals;
- 50 State Survey; and
- A list of selected articles and ordinances.
The 50 State Survey — which provides an update to a 2007 report — examines inclusionary zoning statutes, regulations and cases, if any, in each state. To the extent possible, a description of each state's constitutional or statutory home rule or municipal powers provision is included — which, absent an express statute or regulation, is a key determinant of whether a municipality or county has the authority to enact an inclusionary zoning ordinance.
According to the survey of state law:
- Fifteen states have statutes or regulations that either expressly authorize inclusionary zoning (using the actual words “inclusionary zoning”) or clearly imply such authority by granting broad powers to promote affordable housing;
- Sixteen states have no express authorization for inclusionary zoning, but one or more major municipalities in the state law have adopted inclusionary zoning programs, some of which are voluntary;
- Four states (Arizona, Montana, Oregon and Texas) prohibit inclusionary zoning by statute in some way; and
- In the remaining 15 states, there is no express or implied authorization or prohibition.
State-by-state summaries provide more specific information.
The full report, as well as additional inclusionary zoning resources, is available through NAHB’s Land Use 101 toolkit.
Latest from NAHBNow
Jan 23, 2026
Which Local Markets Are Seeing Declines in House Pricing?Nationally, house prices continued to rise at a modest pace in the third quarter of 2025. However, this national trend masks significant variation across local markets. See which markets have experienced housing price declines in recent quarters.
Jan 22, 2026
NAHB Urges Congress to Ease Regulatory Burdens to Help Housing AffordabilityThe best way to ease the nation’s housing affordability crisis is for policymakers to eliminate excessive regulations that are preventing builders from increasing the housing supply, NAHB told Congress today.
Latest Economic News
Jan 23, 2026
2025 Third Quarter State-Level GDP DataIn the third quarter of 2025, the Bureau of Economic Analysis (BEA) reported that real gross domestic product (GDP) expanded nationally, with growth recorded across all states and the District of Columbia.
Jan 22, 2026
House Prices Decline in Local Markets Despite National GrowthNationally, house prices continued to rise at a modest pace in the third quarter of 2025, as mentioned in our previous quarterly house prices post. However, this national trend masks significant variation across local markets. While many metro areas continued to see house price appreciation, others experienced notable declines following several years of rapid growth.
Jan 21, 2026
Private Residential Construction Spending Edges Higher in October on Home ImprovementsPrivate residential construction spending was up 1.3% in October, rebounding from a 1.4% decline in September 2025. This modest gain was primarily driven by increased spending on home improvements.