Inclusionary Housing and Mixed-Income Neighborhoods in Urban China

Abstract

Over the past three decades, China has launched several affordable housing programs to combat the housing affordability crisis and help low- and moderate-income families own or rent a decent home in the city. In 2007, the State Council of China required that affordable rental housing units be primarily produced through inclusionary housing developments. The inclusionary housing policy, or inclusionary zoning, mandates or incentivizes developers to set aside a portion of units in their new market-rate projects as affordable housing, creating mixed-income neighborhoods and communities. Given that affordable housing is in close physical proximity to market-rate units in the same development, inclusionary housing holds the promise of providing more social benefits, particularly in promoting social equity and inclusion. Yet, whether the inclusionary housing approach can deliver these social improvements is still questionable.

This research responds to a lack of studies systematically investigating how inclusionary housing works in China and evaluating its success, issues, and challenges. Specifically, it aims to answer the question: To what extent does inclusionary housing contribute to reducing housing inequality and fostering social inclusion in Chinese cities? This research adopts a case study approach and employs mixed methods. It delves into policy design and implementation, with a critical focus on policy outcomes across different levels and perspectives.

This research selected the city of Zhengzhou as the case study. At the city level, it examines inclusionary housing policy design and the project development process by reviewing government documents and interviewing officials and developers. It also reflects on how inclusionary housing transforms the spatial distribution patterns of affordable housing. At the neighborhood level, the study focuses on two inclusionary housing neighborhoods, utilizing surveys and interviews to investigate policy outcomes from the residents’ perspectives. In the case study neighborhoods, the study examines and compares their physical and social characteristics, measures residents’ perceived levels of social inclusion, and investigates how residents perceive and experience the physical proximity between different housing groups. At the individual level, the study examines residents’ understanding of social inclusion, explores the impact of the COVID-19 pandemic on their perceived social inclusion, and summarizes their personal insights on the inclusionary housing policy and affordable housing programs.

This study reveals that the inclusionary housing scheme has contributed to reducing housing inequality and residential segregation at the city level by speeding up affordable housing production and integrating it into market-rate developments. This allows disadvantaged families to reside in areas with more economic opportunities and better public services. Nonetheless, the study highlighted that inclusionary housing falls short of fostering social inclusion. Residential segregation persists at the neighborhood level. Inequities embedded in neighborhood planning, architectural design, property management practices, and building construction have further deepened the issue of stereotyping and exacerbated social divides. This study concluded by discussing how stakeholders can collaborate to ensure that inclusionary housing meets its social goals, making mixed-income neighborhoods more livable, sustainable, and inclusive. In doing so, the study contributes to the global knowledge of inclusionary housing and mixed-income development practices.