Robert Corley

Our housing market, much like our politics these days, seems to be primarily dominated by the extremes. Over the last 15 years we have seen huge increases in both luxury and affordable housing development. Yet despite these increases, our affordable housing crisis is only getting worse.

Why are we still losing ground? It begs the question, if we could somehow double this production, would it even solve our problem? What are we missing?

The one solution that is consistently missing and receives the least amount of resources is housing production for the “middle.” Creating a way to encourage and support development in this area of the market may be the key that unlocks the inventory problem that plagues our entire housing system. This is the one area of our housing sector that has not seen significant public or private investment in over 70 years.

We’re Not Building for Our Future

The second-largest generation in American history are the Millennials, who are now currently in their late 20s and 30s – the prime homebuying years of their lives. But there are few homes for many of them to buy and no new housing production boom in sight. New “starter home” inventory has disappeared and is barely being constructed anywhere, creating a “missing middle” of inventory in both house style and options for first-time buyers.

This past fall, NeighborWorks and MassINC Polling Group surveyed over 20,000 renters in our region, asking them about their number one housing goal. The overwhelming answer was to own a home.

According to a recent Gateway Cities Housing Monitor Report published by the MassINC Policy Center, in our Gateway Cities alone there are over 50,000 middle- to upper-income households, of which 16,000 should be homeowners to meet average homeownership rates.

If we continue to not build affordable homes for these buyers, our existing mid-level rental housing stock will remain occupied by households who can afford to and want to buy a home. This rental market stagnation is greatly contributing to our housing crisis, by preventing healthy vacancy rates.

In addition, we are increasingly losing Millennial households to other states that do produce housing for the middle. These are the families in the prime of their consumption and spending years needed to fill our jobs and schools, and to start and lead businesses that will benefit our local economy.

They are the key to our cities’ and towns’ future property tax bases, infrastructure and survival.

But our current housing market just doesn’t build for them. The need for the second largest population of homebuyers in our country’s history is obvious and yet market forces and local government have done little to deliver starter homes for this huge demographic.

Starter Home Boom Needed

Massachusetts urgently needs a starter home housing boom for the missing middle, similar to the 1950s, but this time through a lens focused on smart growth and on creating opportunity and home equity wealth for all.

Today, there are thousands of existing vacant properties and tracts of land throughout the state that could be used to develop starter homes. We have thousands of qualified first-time homebuyers currently renting apartments or living in their parents’ homes that are anxiously ready to buy.

To not build or zone for homes affordable to the middle, the largest demand sector in the market, is irresponsible, and the consequences for our state’s future are dire.

Recognizing the seriousness of the housing crisis, Gov. Maura Healey recently commissioned several housing study groups that offered some common-sense reforms and recommendations, as well as excellent ideas for local communities and developers to unlock new production and good policy and zoning reform suggestions for the Legislature.

Civic Leaders, Developers Must Join

This is a great start, but the analysis paralysis and admiration of our housing problem can’t be where this story ends. We can’t afford to put another housing production plan or policy on the shelf never to be implemented.

Thankfully, leaders like state Sen. Paul Feeney have proposed exciting new legislation that would provide funding to support development in “starter home” 40Y zones and new options for municipalities – An Act Establishing the Missing-Middle Starter Home Development and Home Ownership Program.

If passed, this legislation would establish a fund for the new construction or rehabilitation of starter homes. We need more common-sense legislation like this to be adopted, passed and implemented locally in our cities and towns.

But it’s also time for market-rate developers and local cities and towns of all types to come together, take action and start planning and building for our future.

Currently, many cities and towns are in fiscal trouble. Rather than continuing to increase property taxes, cut critical services and close schools and other public facilities, creating a new starter home housing production plan is a forward-thinking opportunity for municipalities to underwrite and stabilize their fiscal health and future.

All of us need to realize the affordable housing crisis we face is a problem we have manufactured by how we finance, develop and envision our communities. And if we don’t come together and create a new vision for our commonwealth quickly, we’ll lose a once-in-a-lifetime opportunity to provide homes for the population that will serve as the backbone of our economy for the next 50 years.

Will we meet the moment?

Robert Corley is the CEO of NeighborWorks Housing Solutions.