The "great room" amenity space in National Development’s 7Ink tower. The project in Boston’s South End was developed under the city's "compact living" zoning pilot and has maintained a high occupancy rate since it opened in 2021. Photo courtesy of National Development
Boston’s compact living pilot was launched by city officials to address a glaring mismatch between existing housing stock and residents’ modern lifestyles.
In a city where two-thirds of the population are singles, couples without children or living with roommates, only one-third of the housing stock consists of one-bedroom units, according to analysis by the former Boston Planning & Development Agency’s research division.
Enacted in 2018, the compact living pilot authorized the construction of smaller housing units, with the expectation that developers would build more of them and pass along the savings to residents.
It hasn’t turned out that way, according to a report by researchers at Tufts University’s Department of Urban and Environmental Policy and Planning.
“Some of these units were renting for $4,000 per month,” said Olivia Ann Carye Hallstein, one of the report’s authors. “It’s definitely orienting itself toward the population who are able to afford those spaces, which is the influx of 22- to 35-year-old professionals.”
Results a Mixed Bag
Prices per square foot exceeded conventional market-rate units, the study concluded.
“The study rings true,” said Josh Zakim, a former Boston city councilor and executive director of advocacy group Housing Forward MA. “These are market-rate units and most of them are in prime locations in the city, so they are going to command high rents.”
By adding supply, the program may have accomplished one of its goals in reducing pressure on existing housing for families, Zakim said.
“It’s providing much-needed supply in Boston, and that’s an undeniable benefit. The question is whether this is the best policy to encourage more housing,” Zakim said.
The pilot was initially scheduled to expire in 2020 but extended through May 2023 because of the disruptions caused by COVID. No new proposals were accepted after May 2023, pending further study after a “critical mass” of projects are completed, according to a Boston Planning & Development Agency memo.
“We didn’t have enough information to prove our initial hypothesis, which is that by allowing developers to build smaller units there would be a proportionate decrease in the price,” said Paige Roosa, director of the city’s Housing Innovation Lab. “But there is still an interest in understanding the role that smaller unit types might have in increasing the supply of housing across the city.”
Roosa said it is not clear which agency would be responsible for amending or resubmitting the policy to the new Boston Planning Department. The department didn’t respond to requests for comment.
Cutline: A $300 million development at 2 Charlesgate West in Boston’s Fenway will include 400 apartments approved under Boston’s compact living policy, some as small as 361 square feet. Image courtesy of Utile
Affordable Units Rejected by Some
Like conventional multifamily developments, the compact living projects were required to comply with Boston’s inclusionary development policy, which set a minimum 13 percent component of income-restricted units.
But some potential residents selected by housing lottery to live in the compact projects’ affordable units turned down the opportunity, said Hallstein, founder of Cambridge-based Edible Nest Studio.
“It does suit a very specific niche,” Hallstein said. “But if you’re a single parent with two or three kids, it’s not a realistic way to raise a family.”
The report analyzed eight projects completed under the compact living pilot totaling 1,341 units, including 940 compact living units, in neighborhoods from Allston-Brighton to Mattapan. Some projects included a mix of conventional and compact units.
A 159-unit project completed since the study concluded, The Indie at 35 Braintree St. in Allston, currently lists studios starting at $2,558 per month and ranging from 329 to 351 square feet.
In July, the BPDA board approved another project that had been submitted prior to expiration of the pilot, developer Scape’s 400-unit 2 Charlesgate West. The building will include units ranging from 361 to 856 square feet, according to a BPDA board memo.
A Series of Tradeoffs and Incentives
Enacted in 2018, the housing pilot offered zoning relief to developers to encourage construction of smaller units amidst the past decade’s multifamily building boom. It swapped out minimum unit sizes in the zoning and building codes for a maximum unit size ranging from 450 square feet for studios to 950 square feet for three-bedroom units. And it added new requirements to ensure that the smaller units had sufficient storage space and daylight.
Developers received incentives such as reduced on-site parking requirements, particularly for projects located near transit stops. And existing residents received reassurances that the projects wouldn’t overwhelm neighborhoods, with a prohibition on issuing resident parking permits for the compact living tenants. Developers also were required to submit a transportation management plan that included options such as subsidized MBTA passes for residents.
“The compact living pilot was squarely aligned with where the city is going,” said Joseph Hanley, a real estate lawyer who represents many developers seeking approvals in Boston. “People aren’t having big families. They are younger, get married later, and the families are often a single parent or a couple with only one kid.”
As a trade-off for smaller units sizes, developers were required to include larger common areas than a traditional development.
Developer Scape’s The Bon by Morro brought furnished apartments to Boylston Street in the Fenway with an amenity package comparable to luxury buildings, including a roof deck with Fenway Park views and common area lounges for social events.
Steve Adams
An executive at Newton-based National Development, which developed the 7Ink co-living tower that opened in 2021 in South End, said the policy should be revived. The 7Ink building is currently 98 percent leased, while the 525 LINC building in Allston which National Development manages is 98 percent leased since opening last summer, National Development Managing Director Ted Tye said in an email.
The housing model reflects the lifestyles of young Bostonians who prioritize well-located apartment locations over additional square-footage, he said.
“In this environment, the city should be encouraging ALL types of housing so that we get more built – but understanding that it is not a `one size fits all’ solution. I would eliminate most if not all restrictions related to size of units and amenities and let market forces dictate the right product to build,” Tye said.
Based upon interviews with developers, the Tufts report also claimed the program was plagued by poor communication between the BPDA and Mayor’s Office of Housing, making it difficult to receive clear guidance.
The researchers recommended the compact living be revived with some modifications. Developers would receive more flexibility by replacing the maximum unit sizes with minimum sizes. Design guidelines should allow for more flexibility. And city agencies should improve communication internally and with developers.
“From the city’s perspective, it’s very important to consider how to promote a way to relieve the existing housing stock and keep people in their homes,” Hallstein, of Tufts, said. “If that means building as many units as possible and compact living suits that goals, it’s an option. But under those modifications, it’s important to also understand what population this is serving.”
