Inclusionary zoning might not be the free lunch we've been promised | The Hub

“As discussed in prior sections and our previous reporting, an impact of an IZ policy would be to cap a portion of project revenue, (increasing costs as a proportion of total revenue) placing downward pressure on residential land value. If land prices decline significantly, landowners may be less likely to sell property for the purposes of redevelopment. This could result in reducing the supply of housing entering the marketplace until demand increases pricing sufficiently to trigger development.

You know what also happens:
If land prices increase significantly, landowners may be less likely to sell property for the purposes of redevelopment due to anticipated increase in value over time.

/r/toronto Thread Link - thehub.ca