Many issues are under discussion as a result of these proposed zoning Articles. Issues include: housing affordability, the diversity of housing and incomes in Arlington, environmental concerns and sustainability, tax burdens or tax savings potentially resulting from growth, the risk of postponing the decisions, and the image of Arlington as a community that values diversity and equitability. This one page “fact sheet” attempts to address many of these issues and concerns.
Related articles
This is the second in a series of “Arlington 2020” articles. The first article looked at the number of one-, two-, and three-family homes and condominiums in Arlington, and how that housing stock has changed over time. This article will examine changes in the value of those properties. We’re going to look at “value” through the lens of property assessments, so we should start with an explanation of what property assessments are and how they’re used.
A property assessment is simply the Town Assessor’s best estimate of what a property is worth, based on market values. The assessor’s office inspects properties every ten years; during intervening years, assessments are adjusted based on sale prices of similar homes in a given tax neighborhood. For all practical purposes, assessed values tend to trail market values by two years. In my neighborhood, property assessments are spot on — my house was assessed at $501,000 in 2020; during 2018, sales of similar homes in the neighborhood ranged from $495,000 to $520,000.
Condominiums have a single assessed value, which includes land and buildings. Otherwise, assessed values are broken down into land value, building value, and yard items (e.g., a garage or a shed).
Assessed values are used to determine the tax rate. The assessors page on the town website has calculations in worksheet form, but for all practical purposes, it’s just a division problem. One takes the total tax levy and divides by the sum of all property assessments (in thousands of dollars), and that’s the tax rate. An individual’s taxes are the assessed value of their property (in thousands of dollars) multiplied by the tax rate. If an individual owns (say) 1% of the assessed value in town, that individual will pay 1% of the property tax levy.
The main point is that assessed values are based on market values, but with a two-year lag. Consequently, we can use them as a way to see how home prices have changed over time.
With that background information out of the way, we can look at some numbers. Here’s a graph of the median assessed values for condominiums, one-family, two-family, and three-family homes from 2013 through 2020. (the “median” is a value such that half of the assessments are above, and half are below).
| year | Condominium | Single Family | Two-family | Three-family |
| 2013 | $297,800 | $472,850 | $532,650 | $581,600 |
| 2014 | $300,150 | $484,400 | $530,000 | $574,800 |
| 2015 | $318,200 | $507,900 | $572,000 | $616,300 |
| 2016 | $351,050 | $546,300 | $623,150 | $673,550 |
| 2017 | $357,750 | $581,200 | $663,900 | $714,800 |
| 2018 | $395,400 | $618,800 | $732,100 | $787,600 |
| 2019 | $463,250 | $701,550 | $851,200 | $897,500 |
| 2020 | $473,100 | $771,900 | $944,000 | $1,010,850 |
| %change | 58.87% | 63.24% | 77.23% | 73.81% |
As one would expect, two-family homes are worth more than single-family, and three-family are worth more than two. Condominiums have a lot of variety; they could be half of a duplex, or a single unit in an apartment building. But a general upward trend is clearly evident.
These values are straight out of the assessor’s database, and not adjusted for inflation. The Bureau of Labor Statistic’s inflation calculator shows 12% inflation between 2013 and 2020; the %change is pretty considerable, even if one deducts 12% for inflation.
Next, I’d like to dig further into the 1–3 family assessments, by breaking them down into the value of land vs the value of buildings, and showing how that’s changed over time.
Single-family homes:
| year | Land value | Building value | Total assessed value |
| 2013 | $243,700 | $226,300 | $472,850 |
| 2014 | $253,750 | $227,050 | $484,450 |
| 2015 | $272,700 | $229,900 | $507,900 |
| 2016 | $296,400 | $243,950 | $546,400 |
| 2017 | $326,400 | $246,400 | $581,250 |
| 2018 | $360,900 | $248,100 | $618,800 |
| 2019 | $440,400 | $250,400 | $701,600 |
| 2020 | $448,600 | $316,300 | $771,900 |
| %change | 84.08% | 39.77% | 63.24% |
Two-family homes:
| year | Land value | Building value | Total assessed value |
| 2013 | $202,500 | $320,550 | $532,650 |
| 2014 | $212,250 | $307,800 | $530,000 |
| 2015 | $256,400 | $309,800 | $572,000 |
| 2016 | $262,500 | $349,400 | $623,150 |
| 2017 | $307,000 | $350,700 | $663,900 |
| 2018 | $352,500 | $373,900 | $732,100 |
| 2019 | $478,300 | $374,850 | $851,700 |
| 2020 | $454,500 | $486,100 | $944,000 |
| %change | 124.44% | 51.65% | 77.23% |
Three-family homes:
| year | Land value | Building value | Total assessed value |
| 2013 | $200,100 | $377,900 | $581,600 |
| 2014 | $209,100 | $364,100 | $574,800 |
| 2015 | $249,800 | $366,550 | $616,300 |
| 2016 | $259,950 | $412,350 | $673,550 |
| 2017 | $298,100 | $412,500 | $714,800 |
| 2018 | $343,050 | $438,800 | $787,600 |
| 2019 | $459,000 | $440,100 | $897,500 |
| 2020 | $440,100 | $578,450 | $1,010,850 |
| %change | 119.94% | 53.07% | 73.81% |
There are several things worth pointing out in these breakdowns.
First, note that the land and building values “jump” a bit between 2019–2020. 2020 was one of our full reassessment years, so I’m willing to attribute this to a periodic course correction. The total increase is generally linear, but the land/building composition has changed.
Second, the median land value for single-family homes is higher than the median building value, for all years between 2013–2020.
Third, most of the increases come from changes in land value. I believe this comes down to location, location, and location. Arlington has a well-respected public school system, and it’s close to universities and tech centers is Cambridge and Boston, and office parks in Lexington, Waltham, and Burlington. City amenities are close at hand.
So what does one do about our rising home prices, and in particular, the rising value of land? The first (and perhaps default) answer is to do nothing. Rising property values are a boon to homeowners who purchased a capital asset (i.e., a house) in the past, and have seen its value appreciate over time. The downside of doing nothing is that each year, increasing housing prices create an ever-increasing income threshold for new residents.
An alternative approach would be to allow more (and smaller) units to be built on each lot. This requires reconstruction or redevelopment, but it allows the cost of land to be amortized among several households. More units/lot means more people and more density, but it reduces the income threshold for buying in to Arlington. (Note that the per-unit cost for three-family homes is lower than the per-unit cost for two-family homes. Similarly, the per-unit cost for two-family homes is lower than the cost of a single-family home).
A third article will look at the distribution of housing prices in Arlington, and how the distribution varies by housing type.
Here is a spreadsheet of data shown in this post.
Two weeks ago, I helped to organize a precinct meeting for residents and town meeting members. During the meeting, we got into a discussion about public open spaces, how the town funds their upkeep, and whether having more commercial tax revenue might provide additional funding for parks and recreation.
As I discussed in an earlier post, only about 5.6% of Arlington’s is zoned for commercial uses, and that limits the amount of commercial property tax revenue we can generate. Commercial property tax revenue is sometimes referred to as “CIP”, which stands for “Commercial, Industrial, and Personal”. Commercial and Industrial refer to property taxes on land and buildings that are respectively used for commercial and industrial uses. Personal tax is tax on the value of equipment that’s owned and used by a business for the purpose of carrying out whatever their business is. This could include things like desks, display fixtures, cooking equipment, fork lifts, and the like.
In 2020, Arlington’s CIP levy was 5.45%, meaning that 5.45% of our property tax revenue came from Commercial, Industrial, and Property tax revenue. Breaking this down further, 4.2% was commercial ($5,562,528 tax levy), 0.2% was industrial ($278,351 tax levy), and 1.1% was personal ($1,423,117 tax levy). The town’s total 2020 tax levy was $133,350,155. This data comes from MassDOR’s Division of Local Services, and I’ll provide more specific sources in the “References” section of this post.
A CIP levy of 5.45% is low (compared with other communities in the commonwealth), and occassionaly folks like to talk talk about how to raise it. Which is to say, we about how to raise the ratio of commercial to residential taxes. I moved to Arlington in 2007, when our CIP levy was 5.37%. This increased in subsequent years, peaking at 6.26% in 2013, and has been gradually decreasing since. Recall that 2008 was the year the housing market crashed, and the “great recession” began. The value of Arlington’s residential property fell, but the value of business properties was relatively stable in comparison. Thus, our CIP percentage got a boost for a couple of years.
Tax levies (the amount of tax collected) are a direct reflection of the tax basis (the assessed value of property). I’m going to shift from talking about the former to talking about the latter, because that will lead nicely to a discussion about property wealth. Which is to say, the aggregate value of property assessments in town.
Here’s a chart showing Arlington’s net CIP and residential property values, from 1983–2020, adjusted to 2020 dollars. (This is similar to the chart that appears on page 102 of Arlington’s Master plan, but for a longer period of time).
Generally speaking, the value of Arlington’s residential property has appreciated considerably, and there’s a widening gap between our residential and CIP assessments (in terms of raw dollars). Because the gap is so large, it’s helpful to see it on a log scale.
Viewed this way, the curvatures are generally similar, but residential property wealth is rising faster than business property wealth.
In summary, there are three reasons why our CIP is as low as it is: (1) a limited amount of land where one can run a business, (2) the value of residential property is appreciating faster than the value of business property, and (3) occasionally business properties are converted to residential (perhaps with the residential property being worth more than the former business property). That’s not to say we can’t improve the commercial tax base. We can, but we will have to think about what and where, and how to compete with a generally competitive residential market.
References
- MassDOR Division of Local Services reports
- DOR Query Tool for Municipal Property Assessments
- DOR Query Tool for Municipal Tax Levies
- Spreadsheet of Arlington Property Assessments, 1983–2020. Data obtained from MassDOR, with calculations added to adjust for inflation.
- Spreadsheet of Massachusetts Property assessments for 2020. Data obtained from MassDOR.
(Updated 7/2/2020, to add log scale graph and revise conclusion.)
(By Vince Baudoin and James Fleming)
Could Arlington be better using its curb space? Here are some ways the curb can be used to create green infrastructure, promote public safety and accessibility, support sustainable transportation, strengthen business districts, and enable new ‘car-light’ development.
Roughly six inches high and made of concrete or granite, the curb marks the edge of the roadway, channels runoff, protects the sidewalk, and gathers stray leaves. When not assigned any other use, the space in front of the curb it usually serves as free storage for personal automobiles.
Yet the humble curb is a limited resource that can serve the community in many more ways. Have you thought about how your town budgets its curb space? For that matter, has your town thought about how it budgets its curb space?
While Arlington mostly uses its curb space for parking, some areas have other curb uses designed to achieve a specific goal. Consider the streets you use often. Have you seen an unsolved problem, or a missed opportunity, that a different use of the curb could help solve?
Create green infrastructure
The Town has miles of paved roadway. When it rains or snows, water runs into storm drains, carrying salt, oil, and other pollutants with it. The storm drains dump these pollutants directly into long-degraded waterways such as the Mill Brook, Alewife Brook, and the Mystic River. The Public Works department struggles to keep grates clear and drains from overflowing.
One solution: Use the curb for more greenery! The curb can be extended to create a rain garden or tree planting strip. The rain garden helps slow runoff and filter the water before it enters the drain, while trees benefit from additional room for the roots to grow without damaging the sidewalk. A side benefit: narrowing the street encourages drivers to slow down, making neighborhoods safer.
Promote public safety and accessibility
Often, portions of the curb are set aside for public safety purposes. For example, a fire lane provides fire department access to key buildings, such as the high school, shown below. Fire hydrants also enjoy special curb status.
Other times, no-parking zones are established to enhance the free flow of traffic, such as here at Broadway Plaza:
Where pedestrian crosswalks are present, a curb extension is a key safety enhancement. By narrowing the roadway, the curb extension encourages drivers to slow down and look for pedestrians. For pedestrians, it reduces the distance they must cross and prevents cars from parking directly next to the crosswalk and blocking visibility.
Finally, accessible parking spaces can be created along the curb. Arlington has at least 50 designated permit-only on-street parking spaces that provide convenient parking for residents with mobility issues or other disabilities.
Support sustainable transportation
When the curb is mostly used for cars, it is easy to overlook how curbside facilities can enhance other forms of transportation.
In the space of one or two parked cars, this bikeshare station offers space for 11 bikes. However, because it is installed on the roadway, it must be removed every winter so that snow can be cleared. If the curb were extended, the bikeshare station could be used year-round. Another nice feature is bicycle parking: the space to park one car can be used to park six or more bicycles.
A bus stop allows buses to pull to the curb. In some cases, it is appropriate to extend the curb so the bus would stop in the traffic lane; otherwise, it may experience delays when it merges back into traffic.
A bus priority lane provides a dedicated right of way for buses, helping to improve on-time performance. To date, these lanes extend only a few hundred feet into Arlington along Mass Ave. They have proven beneficial in many other communities.
Bike lanes, particularly if they are separated from cars by a physical buffer, greatly enhance the safety and comfort of people traveling on two wheels.
But with a limited roadway width, adding bike lanes is difficult unless the community is flexible enough to consider consolidating curb parking on one side of the street, or moving it to side streets entirely.
Finally, the Town could expand the use of on-street spaces for electric vehicle charging stations, such as this one on Park Ave:
Strengthen business districts
Nowhere is the curb more valuable than in business districts. Businesses thrive when their customers have a convenient way to reach them. Metered parking encourages people to park, do their business, and move along so another patron can take that space. Revenue from parking meters can be spent to improve the business district–for example, by planting flowers and trees.
Metered parking is not the only valuable use of curb space in a business district. Outdoor dining is a way the Town can directly support its restaurants by enabling them to serve additional customers. Here is one example in Arlington Center:
And in Arlington Heights:
Other valuable curb uses in business districts include taxi stands and loading zones. Loading zones in particular are crucial to businesses’ success and help prevent the street from being clogged by early-morning delivery trucks, late-night food-delivery vehicles, and everything in between.
Enable new ‘car-light’ development
With high housing costs and a relatively small commercial tax base, Arlington could benefit from some kinds of development. However, land is valuable and lots are small, so if new buildings are required to have large parking lots, it is very difficult to build new homes and businesses. Plus, large parking lots bring more cars and more traffic. But better curb management can help resolve this dilemma, supporting car-light development that is more sustainable and affordable.
For example, on-street permit parking can enable nearby development with few or no off-street parking spaces. New housing or businesses are a better use of land than parking and will generate more property tax revenue. When parking permits are priced appropriately, they are available to residents who need them but discourage households from adding extra cars they do not need.
Take these hillside houses: access to on-street parking made it possible to build on a steep hillside, where it would have been too expensive and difficult to blast to create off-street parking.
Conclusion
Ask your town leaders if they have a curb management strategy. Is the Town using its limited curb space in support of goals such as green infrastructure, public safety and accessibility, public transportation, local business, and car-light development?
It’s New Year’s eve and I’m determined to get my third and final “Arlington 2020” article written and posted before 2021 rolls in. I’ve written these articles to paint a picture of Arlington’s housing stock, and how our housing costs have changed over time. The first article looked at the number of one-, two-, and three-family homes and condominiums in Arlington. The second article looked at how the costs of these homes has varied over time.
In this article, I’m going to look at the per-unit costs for our different housing types. The per-unit cost is just the assessed value, divided by the number of units. For condos and single-family homes, the unit cost is simply the assessed value. For two-family homes, it’s the assessed value divided by two. For a ten-unit apartment building, it’s the assessed value divided by ten. We’ll look at the price ranges within housing types, as well as the general differences between them.
The information here doesn’t include residential units from Arlington’s 76 mixed-use buildings. (My copy of the assessor’s data doesn’t distinguish between residential and commercial units in these buildings; I’ll try to say more about them in 2021.) It also omits units owned by the Arlington Housing Authority.
Condominiums
Condominiums provide the most variety and cost diversity. A condo can be half of a duplex, or part of a much larger multi-family building. The low end of the scale tends to be 500–600 square foot units that were built in the 1960’s; the high end tends to be more spacious new construction.
This graph is a histogram, as are the others in this article. The horizontal axis shows cost per unit, and the vertical axis shows the number of units in each particular cost band.
The per-unit price distribution is
| min | 1st quartile | median | mean | 3rd quartile | max |
| $92,600 | $344,450 | $473,100 | $500,086 | $640,850 | $1,241,000 |
Single-family homes
Single family homes are heavily concentrated around the $700,000 mark. There’s very little available for less than a half million dollars.
Per unit rice distribution:
| min | 1st quartile | median | mean | 3rd quartile | max |
| $103,700 | $679,900 | $771,900 | $825,172 | $908,750 | $3,232,700 |
The $103,700 single-family home deserves some explanation. The property straddles the border between Arlington and Lexington; it appears that the $103k assessed value reflects the portion that lies in Arlington.
Two-family Homes
Two-family homes are the bread and butter of East Arlington; they’re also common in the blocks off Mass ave near Brattle Square and the heights. Many of these homes are older and non-conforming, and they’re gradually being renovated and turned into condominiums.
As a reminder, these are costs per unit (as opposed to the cost of the entire two-family home).
Per unit price distribution:
| Min | 1st quartile | median | mean | 3rd quartile | max |
| $209,050 | $440,550 | $472,000 | $479,175 | $508,588 | $1,140,450 |
Three-family Homes
Unlike Dorchester and Somerville, three-family homes are not a staple of Arlington’s housing stock. But we have a few of them. Most were built between 1906 and 1930.
Per-unit price distribution:
| Min | 1st quartile | median | mean | 3rd quartile | max |
| $227,567 | $313,733 | $336,950 | $344,292 | $362,600 | $719,000 |
Small Apartments (4–8 units)
The majority of Arlington’s small apartment buildings were constructed during the first half of the 20th century. The most recent one dates from 1976.
Per-unit price distribution:
| Min | 1st quartile | median | mean | 3rd quartile | max |
| $154,950 | $202,950 | $227,775 | $231,619 | $255,775 | $403,875 |
Large Apartments (9+ units)
You’ll see three outliers in the per unit-cost distribution for large apartment buildings. These correspond to the newest apartment complexes in Arlington: The Legacy (2000), Brigham Square (2012), and Arlington 360 (2013).
Per-unit price distribution:
| Min | 1st quartile | median | mean | 3rd quartile | max |
| $117,013 | $141,383 | $153,006 | $195,789 | $170,973 | $474,631 |
All combined
Finally, we’ll put it all together in one picture, representing nineteen-thousand and some odd homes in town.
Per-unit price distribution:
| Min | 1st quartile | median | mean | 3rd quartile | max |
| $92,600 | $417,175 | $555,825 | $587,975 | $759,900 | $3,232,700 |
While there are lower-priced options available, a person coming to Arlington should expect to buy (or rent) a property that costs just shy of half a million dollars (or more).
Here is a spreadsheet with the cost distributions mentioned in this article.