AARON GORNSTEIN
‘Still a major concern’

Eight out of 10 Bay State residents are concerned about the state’s housing costs, according to the results of a recent poll.

The second annual poll, conducted by the University of Massachusetts Donahue Institute for the Citizens’ Housing and Planning Association, revealed that home prices are a concern for 86.9 percent of residents, compared to 76 percent in 2004.

“Clearly, housing costs are still a major concern for the vast majority of Massachusetts residents we polled,” said CHAPA Executive Director Aaron Gornstein.

The poll surveyed 500 residents statewide in November, and a separate poll surveyed 450 Essex County residents.

When presented with a list of seven issues of concern, survey respondents ranked cost of housing in the top three behind health care and public education but above public safety, loss of open space, traffic congestion and jobs.

The poll results come at a time when economists are predicting that the housing market will weaken this year. Experts are anticipating that price appreciation will ease this year, and some analysts believe that prices may even dip 1 percent to 3 percent.

The median selling price for a single-family home in Massachusetts reached $345,000 last year, according to The Warren Group, parent company of Banker & Tradesman. The price was 5.5 percent higher than 2004.

Meanwhile, prices for condominiums – which have traditionally been a more affordable option for buyers – jumped sharply last year. The median selling price for a condo exceeded $275,000 last year, an 8 percent spike from $257,500 the prior year.

This year’s poll results presented a slightly different picture than last year.

Nearly a third of residents indicated that their monthly housing payment makes it difficult to make ends meet, down from 57 percent of residents in 2004.

In addition, nearly 24 percent of residents indicated that they or members of their immediate family have seriously considered moving from Massachusetts because of housing costs. That’s a significant drop from 2004, when half the residents said they would leave the state due to high housing costs.

Significant Results
In a presentation at the State House last week, analysts suggested that concerns over skyrocketing energy costs and the departure of Bay State residents who had concerns about housing may have resulted in the shift in poll results.

Despite the changes in responses, Gornstein said the results are still significant, especially since 29.5 percent of residents indicated that their housing payment makes it tough to make ends meet, and seven out of 10 noted that housing costs are preventing young families from living in their hometown.

Housing costs appear to be a more acute concern in Essex County, where the single-family median home price was $376,888 last year and the median condo price was $245,000, according to The Warren Group.

According to the poll, 44 percent of respondents answered “yes” when asked if the amount of their monthly housing payment makes it hard to make ends meet. A similar percentage reported that they or immediate family members are considering moving out of Massachusetts because of the state’s high home prices – a much larger percentage than statewide.

“It’s definitely not a surprise that [housing costs are] a significant issue across the county,” said North Shore Housing Trust President Jonathan Sherwood, who noted that costs are a concern for both renters and homeowners in Essex County.

“Essex County is the third-most expensive part of the state in terms of housing,” said Sherwood, citing information from the North Shore HOME Consortium, a group of 30 communities in northeastern Massachusetts that determines how federal housing funds are used regionally.

The rise in home prices in Essex County over the last five years has outpaced any increase in incomes, he said. More than 34,000 homeowners and nearly 19,000 renters in Essex County use more than 30 percent of their income for housing expenses, according to information from CHAPA.

CHAPA and the North Shore Housing Trust launched an affordable housing public awareness campaign last November. As part of the campaign, members of the trust have met with several business groups, housing partnerships and local officials throughout the county to discuss ways they can address housing issues.

The trust is also trying to develop more affordable housing. It is in the process of leasing a closed school in Ipswich to redevelop the property into affordable apartments for seniors. The trust recently purchased a home in the town with plans to convert it into three affordable condos.

In addition, the trust is assisting North Shore communities that want to develop plans to boost their affordable housing stock. In Salisbury, the trust provided guidance on drafting a zoning bylaw change to promote affordable housing development.

In both polls, a majority of respondents expressed support for the creation of new affordable housing and dismissed some of the common reasons people cite in opposing it.

Statewide, about seven in 10 said they support building more affordable housing in their own neighborhood, and 64 percent said they would support low-income housing. More than half disagreed with the notion that new affordable housing would change the character of their town, and 68 percent rejected the idea that it would lead to more crime.

The poll revealed that 40 percent of respondents agreed that having affordable housing would lower property values in the community, down from 2004 when over half of the respondents said they felt that way.

While a substantial number of residents across the state and in Essex County said they did not have sufficient knowledge to determine whether Gov. Mitt Romney and legislators were doing enough to support affordable housing, those that did express an opinion indicated they feel that statewide officials are doing too little.

However, the majority of statewide respondents said that local elected officials are either doing enough or too much in support of low-cost housing. That’s in contrast to the Essex County poll, which found that 55 percent think their elected officials aren’t doing enough.