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
Dec 17, 2025
NAHB Weighs In on New WOTUS RuleIn November, the Environmental Protection Agency (EPA) and U.S. Army Corps of Engineers (Corps) announced a proposed updated definition of “waters of the United States” (WOTUS), followed by a 45-day comment period to gather input on the proposed rule. NAHB members and HBA staff provided comments at three public sessions hosted by the agencies to solicit feedback.
Dec 17, 2025
Podcast: 2025 - The Year of HousingOn the latest episode of NAHB's podcast, Housing Developments, CEO Jim Tobin and COO Paul Lopez recap top events and priorities for the year, and what to expect for 2026, including the 2026 International Builders' Show in Orlando.
Latest Economic News
Dec 16, 2025
Job Market Shows Signs of Cooling in NovemberIn November, job growth slowed, and the unemployment rate rose to 4.6%, its highest level in four years. At the same time, job gains for the previous two months (August and September) were revised downward. The November’s jobs report indicates a cooling labor market as the economy heads into the final month of the year.
Dec 15, 2025
Builder Sentiment Inches Higher but Ends the Year in Negative TerritoryBuilder confidence inched higher to end the year but still remains well into negative territory as builders continue to grapple with rising construction costs, tariff and economic uncertainty, and many potential buyers remaining on the sidelines due to affordability concerns.
Dec 11, 2025
Homeownership Rate Inches Up to 65.3%The latest homeownership rate rose to 65.3% in the third quarter of 2025, according to the Census’s Housing Vacancy Survey (HVS).