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New Housing Offers Fiscal Benefits to Communities

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A study by Elise Rapoza and Michael Goodman shows that new housing construction in MA does not have an adverse affect on municipal or school budgets. And when it might, state funding covers the difference. This study contradicts the often heard argument against new housing development, especially multi-family housing, because it, the argument claims, it will have a negative fiscal impact on communities.

In the aggregate, development of new housing offers net fiscal benefit to both municipalities and the state. Additional analysis validates a second study which found that increased housing production does not predict enrollment changes in Massachusetts school districts. In the new study, a distinct minority of municipalities did incur net fiscal burdens—burdens that the net new state tax proceeds associated with the development of new housing are more than sufficient to offset.

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  1. Housing

New Zoning Articles Preserve Arlington’s Culture

A large part of the debate about the proposed Zoning issues in Arlington revolves around a perspective of Arlington’s culture and how best to maintain it. Can we freeze in time the small, less expensive homes in our R1 & R2 districts? Can we continue to provide low cost rental housing to people in the R4 to R7 districts, housing that is now quite old and is below market rent because it has not been adequately maintained? Or can we reach a consensus about what we most value in Arlington’s culture and set a path to ensuring its preservation for the future?

In 2015 Arlington Town Meeting voted to approve the Master Plan which contained the following set of housing related values and goals for the future of Arlington:

  1. Encourage mixed-use development that includes affordable housing, primarily in well-established commercial areas.
  2. Provide a variety of housing options for a range of incomes, ages, family sizes, and needs.
  3. Preserve the “streetcar suburb” character of Arlington’s residential neighborhoods.
  4. Encourage sustainable construction and renovation of new and existing structures

The Zoning Articles proposed for the 2019 town meeting represent four years of study, reflection and community dialogue. They are precisely intended to further the values and goals that the 2015 Town Meeting voted for.

Our Culture

Arlington has long been a community that cherishes its diversity of housing types and its diversity of income ranges. In recent years, with the regional pressure on land values as more people want to live in good school districts, with good transportation, near their jobs, the pressure on Arlington property values has been extreme. According to the Town’s Master Plan, Arlington does have a more diverse housing stock than most neighboring communities. The type, density and population varies by neighborhood (see Master Plan Ch. 5, Housing Excerpt). Most cities and towns around Arlington experienced a significant rise in housing values from 2000 to 2010. A 40 percent increase in the median value was fairly common. However, Arlington experienced more dramatic growth in housing values than any community in the immediate area, except Somerville. In fact, Arlington’s home values almost doubled.

Tools to Maintain Diversity of Housing

Articles 15 & 16 are two very important “tools” to meet the goals of preserving our diversity of housing.

Over 60% of Arlington’s housing units were built before 1950. Many of those units that we think of now as “affordable” will be needing major renovation or tear down and rebuild in the next few years. Private developers can come in now, buy the buildings and rebuild for market rate (think Boston prices) units. Article 16 gives the town control over these rebuilds, encouraging more housing and more “permanent” affordability.

Article 15, allows Accessory Dwelling Units (“granny units”) after a public hearing and under specific conditions. This will open the town to many lower priced living spaces for students, seniors, etc. throughout the Town.

Arlington values its culture of diversity in housing styles and incomes. Given the pressure regionally for people to find housing in good communities, and bring larger incomes to pay for that housing, Arlington risks losing its culture if the Town does not act NOW to protect it by approving these zoning articles.

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  1. News

Arlington 2020: Cost Distributions of Housing

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

min1st quartilemedianmean3rd quartilemax
$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:

min1st quartilemedianmean3rd quartilemax
$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:

Min1st quartilemedianmean3rd quartilemax
$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:

Min1st quartilemedianmean3rd quartilemax
$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:

Min1st quartilemedianmean3rd quartilemax
$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:

Min1st quartilemedianmean3rd quartilemax
$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:

Min1st quartilemedianmean3rd quartilemax
$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.

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  1. Housing
  2. News

New Library Designed to Include Affordable Housing

A recently constructed project with 44 units of affordable housing shares a footprint with a new public library in this Chicago neighborhood. The Mayor and the Housing Authority initiated a competition for proposals from architecture firms to build projects that feature the “co-location” of uses, “shared spaces that bring communities together”, according to a recent article by Josephine Minutillo in ARCHITECTURAL RECORD (October 2019).

This project is an excellent example of how a municipal policy (increasing affordable housing) can drive creativity to meet policy goals. This project resulted from a combination of publicly owned land, municipal initiative, a quasi public housing agency expertise and a private architecture/ developer with a commitment to affordable housing. Could a project like this work in Arlington MA?

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  1. Arlington
  2. Housing
  3. News
  4. Zoning

Transit Corridor Strategy for More Housing

from Karen Kelleher, Reporter

Interested in new policy developments on housing production in the Greater Boston area? The latest research from Mass Housing Partnership (MHP) is of interest.  They just released (Dec. 18, 2019) in interactive map showing relative housing density around every mass transit and commuter rail station in the system, concluding that the region could add 235,000 units if every community allowed density as of right in the area around transit.

CHAPA has legislation pending that would require municipalities served by transit to allow higher density as of right within a certain distance from transit stations. You’ll see that the density around Alewife is not too bad in the context of the entire system.

This is mostly because of very high density in Cambridge near Alewife, but the density of two and three families in East Arlington shows better housing density than the sea of single family zoning around many commuter rail stops.  
You can check it out here:https://www.mhp.net/news/2019/todex-research-brief

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  1. Housing
  2. Master Plan
  3. Sustainability
  4. Zoning

Reinhardt on Sustainable Housing Ideas

Prof. Christophe Reinhardt runs the MIT Sustainable Design Lab.  On Nov. 25, 2019 he gave a very interesting presentation, including talk and slides, that shows a pathway to make more housing, all kinds of housing, and greater housing density both more palatable in Arlington, and actually desirable.  He also stressed the importance of paying attention to housing now in order to meet the climate change challenge. Charts (starting about 10 min in) show how drastically we need to reduce our carbon footprint to reach net zero by 2050. Buildings today account for about 40% of our carbon emissions world wide. What we build today will likely be around through 2050.

Paying attention to housing design is important to create a sustainable environment.

Here is the link for the Reinhardts talk and slide show:
http://scienceforthepublic.org/energy-and-resources/designing-sustainable-urban-development

or see it on youtube: https://youtu.be/YAeCvUZmUrI

He uses research, drawn from around the world and locally, to show what measurable attributes make local communities desirable to live in and what attributes of housing make residents happy. 

Key attributes for success (slide is at about 18:15 min. in presentation):

1.  Economic opportunities (proximity to work opportunities)

2.  High quality living (daylight access for buildings, streets, walkable, mixed use, micro-units, vibrant public spaces, organic food, fitness opportunities)

3.  Sustainability (comfortable work and play and living spaces, resource efficiency)

The presentation was arranged by the Robbins Library. It was developed and recorded by Science for the Public as part of it’s lecture series.

For more information on sustainability and cities, cities and local municipalities are beginning to recognize the important linkages between urban resiliency, human well-being, and climate change mitigation and adaptation activities. https://news.mongabay.com/2019/11/how-cities-can-lead-the-fight-against-climate-change-using-urban-forestry-and-trees-commentary/ Courtesy of Science for the Public Interest Weekly News Roundup.


(For more opportunities to learn about sustainability, buildings and cities, sign up for the FREE MITx “Sustainable Building Design” online course which starts January.)


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  1. Arlington
  2. Housing
  3. News

It’s a great time to own

A few days ago, the Boston Globe ran an article titled “2021 set records in Boston Housing Market. What now?“. It’s not unusual to see stories about housing in the news — the market is highly competitive and the sale prices can be jaw dropping. Jaw dropping can take several forms: from the new (and used) homes that sell for over two million dollars, to the amount of money that someone will pay to purchase a small post-war cape (around $900,000, give or take).

According to the globe article, the Greater Boston Association of Realtors estimates that the median price of a single family homes in the Boston area rose 10.5% in 2021, to $750,000. Arlington is comfortably in the upper half of this median: according to our draft housing production plan the median sale price of our single family homes was $862,500 in 2020, and rose to $960,000 in the first half of 2021 (see page 39).

In June 2021, I got myself into a habit of sampling real estate sales listed in the Arlington Advocate, and compiling them into a spreadsheet. My observations are generally consistent with the sources cited above; Arlington’s housing is expensive and it’s appreciated rapidly, particularly in the last 6–10 years. It’s a great time for existing owners, but less so if you’re in the market for your first home.

We’re actually facing two problems, which are related but not identical. The first is high cost, which creates financial stress and a barrier to entry (though it is a boon for those who sell). The second problem is quantity; there are regional and national housing shortages, and that contributes to high prices and bidding wars.

Addressing these challenges will require collective effort on behalf of all communities in the metro area; this is a regional problem and we’ll all have to pitch in. There isn’t a single recipe for what “pitching in” means, but here are some for what communities can do.

First, produce more affordable housing. Affordable housing is a complex regulatory subject, but it basically boils down to two things: (1) the housing is reserved for households with lower incomes than the area as a whole, and (2) there’s a deed restriction (or similar) that prevents it from being sold or rented at market rates. Affordable housing usually costs more to produce than it generates in income, and the difference has to be made up with subsidies. It takes money.

Second, simply produce more housing. This is the obvious way to address an absolute shortage in the number of dwellings available. Some communities have set goals for housing production. Under the Walsh administration, Boston set a goal of producing 69,000 new housing units by 2030. Somerville’s goal is 6000 new housing units, and Cambridge’s is 12,500 (page 152 of pdf). To the best of my knowledge, Arlington has not set a numeric housing production goal, but it’s something I’d like to see us do.

Finally, communities could be more flexible with the types of housing they allow. Arlington is predominantly zoned for single- and two-family homes. The median sale price of our single family homes was $960,000 during the first half of 2021, and a large portion of that comes from the cost of land. That’s the reality we have, and the existing housing costs what it costs. So, we might consider allowing more types of “missing middle” housing, where the per dwelling costs tend to be lower: apartments, town houses, triple-deckers, and the like.

Of course, this assumes that our high cost of housing is a problem that needs to be solved; we could always decide that it isn’t. In the United States, home ownership is seen as a way to build equity and wealth. It’s certainly been fulfilling that objective, especially in recent years.

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