Planning for Mixed Use: Affordable for Whom?

Abstract

Problem, research strategy, and findings: Mixed-use zoning is widely advocated to increase density; promote active transportation; encourage economic development; and create lively, diverse neighborhoods. We know little, however, about whether mixed-use developments affect housing affordability. We question the impact of mixed-use zoning on housing affordability in Toronto (Canada) between 1991 and 2006 in the face of waning government support for affordable housing and increasing income inequality due to the occupational restructuring accompanying a shift to a knowledge-based economy. We fi nd that housing in mixed-use zones remained less affordable than housing in the rest of the city and in the metropolitan region. High-income service occupations experienced improved affordability while lower wage service, trade, and manufacturing occupations experienced stagnant or worsening affordability. Housing in mixed-use zones is increasingly affordable only to workers already able to pay higher housing costs. Our findings are limited to Canada's largest city but have lessons for large North American cities with similar urban economies and housing markets. Takeaway for practice: Mixed-use developments may reduce housing affordability in core areas and inadvertently reinforce the sociospatial inequality resulting from occupational polarization unless supported by appropriate affordable housing policies. Planners should consider a range of policy measures to offset the unintentional outcomes of mixed-use developments and ensure affordability within mixed-use zones: inclusionary zoning, density bonuses linked to affordable housing, affordable housing trusts, and other relevant methods.