Image courtesy of Middlesex Senior Cohousing
Homebuyers fed up with high real estate prices and lack of inventory on the market might want to consider one potentially affordable option that’s starting to gain market share in Massachusetts: cohousing.
Cohousing, including a group of seniors that have banded together to build their own housing project with shared community spaces in Littleton, emerged in the U.S. in the early 1990s. Today, there are more than 180 cohousing communities across the country – including 24 in the Bay State, from North Adams in western Massachusetts to West Tisbury on Martha’s Vineyard.
Some of the cohousing communities in Massachusetts have officially designated affordable housing units, including the recently-launched Hager Homestead project in Littleton.
Nauset Construction of Needham recently broke ground on the new Hager Homestead, which will include 24 housing units within five buildings on a 15-acre site in Littleton when completed in early 2023.
First 55-Plus Community
Hager Homestead is a joint development venture between Lexvest Group LLC, a Maynard-based real estate development firm, and Middlesex Senior Cohousing, which represents the homeowners (also known as “equity members”). In effect, Lexvest is acting as the build-to-suit developer for the project.
The project’s original organizers decided to develop a plus-55 senior community after receiving early interest from many older residents who wanted senior cohousing, says Diane Loomis, a community member since 2018.
The result: Hager Homestead will be the first 55-plus cohousing project in Massachusetts. All other cohousing communities in the state are so-called “intergenerational” communities with no age restrictions.
Designed by Sheldon Pennoyer Architects of Concord, New Hampshire, the project converts a 2,500-square-foot farmhouse into a common house and the community social center including dining room and kitchen. The project includes a 3-story building with 15 housing units, a trio of new cottage-style residences containing two and three units, and renovations of a single-family home into two housing units.
Eight of the units, or one-third of the total, will be designated as affordable or workforce housing, as required under the town of Littleton’s inclusionary zoning bylaw.
Cohousing advocates hope to build communities while building housing, but still face the same constraints as traditional projects: high land and construction costs.
Market-Rate Pre-sales Start at $450K
Matthew Blackham, a partner at Lexvest, said there’s always a risk for developers when too many affordable units are required within housing projects.
The biggest concern: To keep prices affordable for some units, the sale prices for others have to rise in order for the entire project to financially work, he said.
“There really is a balance you have to reach,” he said. “You have to make the numbers work.”
In the case of Hager Homestead, all of the remaining 16 housing units have indeed been pre-sold at prices ranging from $450,000 to $700,000.
Hager Homestead hopes to start pre-selling the eight affordable units within the next 60 to 90 days, perhaps at prices ranging from $200,000 to $400,000 per unit, said Blackham, who added potential buyers will be told they’re joining a semi-communal housing venture with specific property covenants and rules.
Some Hager Homestead residents might find they’ll save money in other ways, since part of the mission of cohousing projects is to pool and share resources, said Katie McCamant, a well-known cohousing advocate and consultant who has worked with members of the Littleton project.
Cohousing residents usually share chores, buying tools and equipment, maintaining and updating common amenities and just helping each other out in numerous ways, such as providing rides for those who need to do errands, she said.
“There are opportunities for huge savings in cohousing,” said McCamant, co-author of “Creating Cohousing: Building Sustainable Communities.”
Malden Project Creates 30 Units
In Malden, the new Bay State Common Cohousing project, with 30 condominium units contained in one building and a 5,000-square-foot common house, is expected to open for occupancy within a few months.
Christine Clements, an equity member and future resident at Bay State Common, said the project at 368 Pleasant St. in Malden Center wasn’t required to include affordable units under local regulations. But there are “informal” efforts to assist those who may be financially struggling.
“Some people are helping out others,” she said. “We’re working on affordability amongst ourselves.”
According to Bay State Common’s web site, 29 of its 30 units have already been pre-sold. As of March 15, the last remaining unit available, a two-bedroom condo, was listed for sale at $685,000.
Unlike Hager Homestead, Bay State Common organizers opted to act as their own developer and minimize costs, Clements said.
“As far as construction goes, it doesn’t cost less just because you’re nice people who went to get along with others,” Clements said. “The cost of land is still the same. Construction costs are still high.”
Ben Goldfarb, vice president at Nauset Construction, says that, in general, cohousing construction costs are roughly the same as any other residential construction project, whether it’s a new multifamily structure or a subdivision-type project.
Goldfarb, whose company was involved in the construction of the Richdale Place cohousing project in Cambridge in 2007, said there may be some minor cost savings when constructing multiple buildings or multiple units at sites – and then buying materials in bulk.
The bottom line, he said, is that while cohousing emphasizes shared common areas and close interaction with neighbors, it’s still an example of housing development’s challenges in an expensive part of the country.
Loomis, one of the property owners at Hager Homestead, said the major benefit of cohousing is not about its costs.
“What’s attractive to me about cohousing is living in an old-fashioned neighborhood again, where you know and care about your neighbors,” she said. “It’s an opportunity to take charge of your community. It’s about neighbors being friends and supportive.”
