Five decades after a state Supreme Court ruling required municipalities to exercise their zoning powers to provide for housing affordable to low- and moderate-income households, a new study has found that the mandates from the so-called Mount Laurel decision have largely failed to increase housing production or reduce housing costs.
The report, titled “Mount Laurel Obligations Made New Jersey Housing More Affordable?” and published by the Garden State Initiative, analyzes the impact of mandatory and voluntary inclusionary zoning programs under the Fair Housing Act of 1985 and subsequent legislative actions.
The Garden State Initiative believes the state needs to rethink its housing policy and focus on general housing abundance and market-oriented solutions rather than prescriptive mandates.
Among the key takeaways from the study:
- Despite New Jersey’s denser population and nearly four decades of Mount Laurel obligations, the state’s per capita housing production has largely mirrored Pennsylvania’s — a state without comparable legal mandates — showing little evidence that the policies increased supply.
- There is little evidence to indicate that Mount Laurel obligations lowered the cost of housing or cost of living.
- Some current legislation exempts urban municipalities from affordable housing obligations, even though these more densely populated areas often have the greatest demand for reasonably priced housing.
“New Jersey’s Fair Housing Act, born from the Mount Laurel cases, was meant to make housing more affordable, but failed,” said Jason Sorens, author of the study and Senior Fellow at the American Institute for Economic Research. “But our research shows housing production in New Jersey has largely mirrored Pennsylvania, a state without comparable legal mandates. The state would be better off cutting red tape and letting property owners build housing that fits local infrastructure.”
Audrey Lane, president of the Garden State Initiative, said, “Despite decades of legal rulings and legislative policies, New Jersey has not expanded its supply of affordable housing. Legislators should reconsider housing solutions that leverage the benefits of our urban areas — transportation, infrastructure, and jobs — without fueling suburban sprawl — and pursue policies that expand access for those who want to call New Jersey home but cannot currently afford it.”
The Garden State Initiative Policy recommends extending affordable housing obligations to all municipalities, including urban areas currently exempt, to ensure housing availability where demand is greatest; shifting from municipal to regional affordable housing targets to better align with market demand; leveraging private property rights and market incentives to grow housing supply; and streamlining permitting processes.
