BARRY BLUESTONE
Weaker markets possible
Following the release of well-publicized reports showing how a shortage of workforce housing is hurting the economy, much focus has been placed on boosting the housing supply in Massachusetts.
But obstacles remain and last week a panel consisting of a developer, a housing advocate, an environmentalist and state and local officials tried to offer their ideas on overcoming challenges and responding to opponents of housing development.
Their ideas varied from encouraging developers to involve residents early on in discussions about proposed projects to convincing communities to adopt and utilize smart-growth zoning tools.
“There are many towns that still have no interest in creating housing,” said Theodore R. Tye, managing partner of Newton-based National Development.
However, Tye – whose company has built industrial parks, commercial space and residential units throughout Massachusetts – said he is starting to see some towns consider and embrace new development concepts.
Tye was part of a panel discussion that took place at a summit, “Housing Supply: The Quiet Job Killer,” organized by the Massachusetts Association of Realtors.
The summit came three weeks after the release of studies by Northeastern University’s Center for Urban and Regional Policy and Harvard University’s Rappaport Institute for Greater Boston, which showed that soaring home prices have made it tough for the region to add jobs and grow the economy.
High housing costs are a key reason local companies are relocating and young families are leaving the state for more affordable locations, according to researchers.
Massachusetts was the only state in the country to lose population for the past two years. And the state has lost people between the ages of 25 and 34 at a greater rate than the rest of the county, according to research presented by Barry Bluestone, director of the Center for Urban and Regional Policy.
“Even people who have jobs are leaving to get a lower cost of living,” said Bluestone.
Bluestone said economic weakness, slow job growth and the loss of young families could lead to much weaker housing markets in Massachusetts in the long run.
Displaying a chart comparing home vacancies and housing price appreciation, Bluestone pointed out that as home vacancies grow – which would occur if the state continues to lose population – prices plummet.
That’s why even homeowners who have enjoyed strong appreciation in the value of their homes over the years should be interested in increasing the housing supply to retain population and moderate home prices, said Bluestone.
“Wouldn’t it be nice not to see the value of your home decline 14 percent?” asked Bluestone.
H. Bryant Applegate, senior counsel to the Department of Housing and Urban Development, said the research done by Bluestone’s Center for Urban and Regional Policy and the Rappaport Institute for Greater Boston is critical in generating more community support for housing.
Applegate heads America’s Affordable Communities Initiative, which was established by HUD to get communities to commit to regulatory reform as a way of reducing the cost of housing. HUD has been trying to educate local and state officials about how overly restrictive zoning and regulations can drive up home costs.
HUD created a clearinghouse, www.regbarriers.org, where participants can share strategies and ideas for overcoming regulatory barriers to affordable housing.
‘The Silent Majority’
At last week’s summit, participants also discussed the frequent opposition to housing development that they confront.
Several participants emphasized that laws like Chapter 40R and 40S, which provide financial incentives to communities that create smart-growth districts where high-density residential development with an affordable component can occur, are a key boost for housing.
“One of the reasons I like 40R is it gives communities an enormous amount of control [about where development will occur and what it will look like],” said Andrew Gottlieb, chief of the state’s Office for Commonwealth Development.
So far, five communities – Plymouth, North Reading, Dartmouth, Chelsea and Norwood – have adopted Chapter 40R.
Geoffery C. Beckwith, executive director of the Massachusetts Municipal Association, said he’s “optimistic” about 40R and is encouraging communities to “look into it.”
However, Beckwith said communities will continue to be cautious about growth and development if they do not receive additional state aid to pay for public services. And he said any state efforts to reduce local control will only lead to increased resistance, conflict and litigation.
Despite the common perception that residents in many communities oppose affordable housing, public opinion polls done by the Citizens Housing and Planning Association show that there is significant support for such housing, according to CHAPA Executive Director Aaron Gornstein.
A recent poll revealed that home prices are a concern for 87 percent of Massachusetts residents, and 70 percent said they would support affordable housing in their neighborhood. It’s important to get the supporters of affordable housing involved in public hearings to back housing proposals, Gornstein said.
“We have to reach out to the silent majority in a much more effective way at the local level,” he noted.
Steven Sadwick, vice president of the Massachusetts chapter of the American Planning Association and the community development director for the town of Tewksbury, noted that housing developers who engage local officials and residents early on in the process tend to be more successful.
