Inclusionary Zoning

Understand inclusionary zoning in Canadian real estate — what it is, how it works, and its role in housing affordability.

Inclusionary Zoning

July 29, 2025


What is Inclusionary Zoning?

Inclusionary zoning is a municipal planning tool that requires or incentivizes developers to include a percentage of affordable housing units in new residential projects.

Why Inclusionary Zoning Matters in Real Estate

In Canadian urban planning, inclusionary zoning is used to increase the supply of affordable housing and promote mixed-income communities.



Key aspects:
  • Policies may be mandatory or voluntary with incentives
  • Can apply to rental or ownership housing
  • Helps address housing affordability challenges



Understanding inclusionary zoning is essential for developers planning projects in municipalities with these policies.

Example of Inclusionary Zoning in Action

The city’s inclusionary zoning bylaw required 10% of units in the new condo development to be priced below market.

Key Takeaways

  • Requires or incentivizes affordable units in new projects
  • Helps address housing affordability
  • Creates mixed-income communities
  • Can be mandatory or incentive-based
  • Affects project design and financial feasibility

Related Terms

Additional Terms

Public Realm Improvements

Public realm improvements are enhancements to public spaces such as sidewalks, parks, plazas, and streetscapes, often funded or contributed by. more

Mortgagee in Possession

A mortgagee in possession is a lender who takes control of a property after borrower default, but before foreclosure or power of sale. The lender. more

Lease Surrender Agreement

A lease surrender agreement is a negotiated contract between a landlord and tenant that ends a lease before its scheduled expiration. Terms may. more

Green Infrastructure

Green infrastructure refers to natural or engineered systems that manage stormwater, reduce heat, and improve sustainability in developments.. more

Escrow Holdback

An escrow holdback is a portion of funds withheld at closing and held in escrow until specific conditions are met, such as completion of repairs,. more

Underused Housing Tax

The Underused Housing Tax (UHT) is a federal annual 1% tax on the value of vacant or underused residential property owned by non-resident,. more

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