From the Neighbors for Boise site:
What is Zoning?
Zoning is a set of ordinances that dictate how land can be used in a city or, simply put, what can go where. It determines the look and feel of changes and developments and offers other requirements for construction.
There are a few ways we can affect the cost of housing, although the most effective option is to create more demand for tenants. Exclusionary zoning makes it illegal to build the housing density and diversity needed to meet the needs and incomes of local workers and taxpayers.
A shortage of rental homes tends to drive rents up and tenants out; otherwise, tenants pay a higher share of their household income towards rent, leaving less income available to invest in taxable goods and services or local and state economies.
When housing prices go up, employers struggle to recruit and retain quality, dependable workers without increasing wages, and those costs are passed along to local consumers. In this way, housing costs are one driver of overall inflation.
Another option to use taxes to offset the cost of housing for essential workers or other populations; this is no different from taxpayer subsidies to offset consumer prices for commodities like gas and oil, corn, or sugar.