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Why Does Arlington Need Housing?

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This infographic demonstrates in data and graphs why Arlington needs more housing.

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  1. Arlington
  2. Housing
  3. News

Arlington Report on Demolitions & Replacement Homes

(DRAFT – 7/11/2019)

Overview

prepared by Arlington Planning & Community Development Dept.

Arlington Planning Department officials report on options for the Town to mitigate the effects of housing demolitions and housing replacements in neighborhoods.

Evidence suggests that lack of appropriate regulatory policies have led to incidences of “mcmansions” and other issues that concern neighborhood residents. This study looks at the data, the policy and regulatory options for Arlington. It also looks at how comparable nearby communities have managed similar circumstances.

This 42 page report covers a great deal of data and analysis of homes by zoning district, gaps in the effectiveness of the current regulatory structure, affects on affordability in Arlington by zoning district, information on housing prices and sales, etc.

“Best practices” include descriptions of demolition delay, expansion of local historic districts, neighborhood conservation districts, design review standards and guidelines and possible revisions to the regulatory framework in Arlington. The report also includes interesting case examples of how comparable communities near Arlington handle these issues.

This report was presented to the Arlington Select Board on July 22.

Read the complete report and see the available data and tables.

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  1. Arlington
  2. Fiscal Impact
  3. Housing
  4. News

Will More Arlington Housing Raise Town Costs For Schools?

Prepared by: Barbara Thornton with the capable assistance of Alex Bagnall, Pamela Hallett, Patrick Hanlon, Karen Kelleher, Steve Revilak and Jennifer Susse.

As Arlington considers new zoning and other policy decisions to increase the amount of affordable housing in the town, a concern has been raised about the threat of greater costs to the Town’s budget from new people with school age children moving into the town. The concern: additional children in the public schools costs the town more than the additional new property tax revenue the Town collects from the new housing.

This post examines this concern, drawing on data from two recent housing developments, representing 283 units of housing in Arlington, to determine that actually the Town budget gains over 4.5 times the actual cost of paying for the students. According to the most recent 2020 tax bills, the Town expects to collect $1,250,370 in revenue and to spend an additional $269,589 for the new Arlington Public School students living in these developments.

The data suggests that the fear of increased school costs, overwhelming the potential new revenue from new housing construction is not warranted.

For more information, see the full post here.

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  1. Arlington
  2. Housing

The Gentrification of Arlington

(Comments presented to the Arlington Redevelopment Board and Select Board during a public hearing on Jan 13, 2020)

Steve Revilak, 111 Sunnyside Ave. In the interest of disclosure, I live in market rate housing that was built by a developer. Among Arlington residents, I’m not unusual in that regard.

At the end of December, a friend sent me an article that appeared on Redfin’s blog, which ranked the most competitive real estate markets in 2019. Out of 20 listings, three were neighborhoods in Arlington: East Arlington at #3, the Brattle Street Area at #5, and Arlington Center at #12. This is only one data point, but Redfin is a national realtor and works in markets all across the country. Arlington is a desirable place to live.

Housing costs have steadily increased over the last 20 years, modulo a brief reset during the economic recession of 2008. For example, the prior owner of my house purchased it for $151,000 is 1999. I purchased it for $359,000 in 2007 (when it was assessed at $287k). Today, it’s assessed at $501k, which is consistent with similar home sales from 2018.

The net effect: each year a new family moves to town, they have to have a more money (or be willing to spend more on housing) than a family who moved in the year before. With that in mind, I’d like to cite a few figures from the 2019 Town Survey:

  • Question 37: Indicate the number of years lived in Arlington. 59% of respondents indicated 15 years or less. Nearly 30% indicated five years or less. Despite the prices, people still move here.
  • Question 40: What was your annual household income in 2018. The most common response was “more than $200,000”, with over 28% answering that way. Nearly 71% of respondents indicated earning $100,000/year or more. Arlington’s median income is likely higher than HUD’s AMI for the Metro Boston area.
  • Question 41: What is the highest level of educated completed by a member of your household. Over 73% indicated having a masters degree or higher.

I don’t mean to knock people who’ve lived here 15 or fewer years, have advanced degrees, or have household earnings of $200,000 or more per year. I check every single one of those boxes myself. But I do want to point out that we are a highly educated and affluent community. Put another way, we have a population that matches the cost of our housing.

Twenty years of gentrification haven’t killed us: we’ve expanded town staff and services, we’re renovating public buildings, and we’re getting a new high school. Those are all good things, made possible because residents have the money to pay for them, and have been willing to do so.

We can absolutely keep the status quo we’ve had, but I want to recognize that the combination of the housing market and Arlington’s policies have created an economic barrier to living here. I see two issues: one is affordability, and the other is an imbalance between supply and demand.

There are a variety of things we could do, and I think we should consider all of them. I don’t see a viable way to relieve housing pressure that doesn’t involve more housing. And that’s what I hope we can do over the coming years: find ways to build more housing.

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  1. Housing
  2. News
  3. Zoning

The Affordable Homes Act

by Steve Revilak

On Tuesday August 6, 2024, Governor Healey signed the Affordable Homes Act (H.4977) into law.  It’s a significant piece of legislation that will take positive strides toward addressing our state’s housing crisis. At 181 pages, the Affordable Homes Act is a lengthy bill, but the things it does generally fall into three categories: funding, changes to state law, and changes to state agencies.

The act authorizes more than five billion dollars to fund the creation, maintenance, and preservation of housing.  This includes $425M to housing authorities and local housing initiatives (including $2.5M for the Arlington Housing Authority), $60M to assist homeowners or tenants with a household member with blindness or severe disabilities, $70M for community-based efforts to develop supportive housing for persons with disabilities, and $100M to expand opportunities for first-time homebuyers.

The Affordable Homes Act makes several changes to Massachusetts zoning laws, including the legalization of accessory dwelling units (ADUs) statewide.  ADUs, also known as “granny flats” or “in-law apartments,” are a cost-effective way to add new housing, and they’re typically used to provide living quarters for relatives or caretakers, or to generate rental income for homeowners. ADUs are now allowed in all single-family zones in Massachusetts, by right, without the need for a discretionary permit.  Arlington has been a leader in this area, having passed an ADU bylaw in 2021, and it’s great to see this option extended throughout the Commonwealth.

Finally, the Affordable Homes Act makes a number of changes to state agencies, especially the Executive Office of Housing and Livable Communities (EOHLC).  The Act establishes a new Office of Fair Housing within the EOHLC, to “advance the elimination of housing discrimination.”  The Fair Housing office will provide periodic reports on progress towards achieving this goal.  EOHLC is also charged with creating and implementing a state-wide housing plan that will consider supply and demand, affordability, challenges unique to different regions of the state, and an analysis of local zoning laws.

While our legislators deserve kudos for putting this package together, they also deserve kudos for what they left out.  More than three hundred amendments were filed during House deliberations, and a number of them were intended to weaken the multi-family housing requirements of the MBTA Communities Act.  For example, one amendment, simply titled “Technical Correction” would have rewritten the transit community definitions, in order to reduce the housing requirements for Milton. We are heartened that our legislators did not go along with such shenanigans.

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  1. Housing

Does Building More Housing Reduce the Market Price?

Report by Vicki Been, Ingrid Gould Ellen, and Katherine O’Regan, Supply Skepticism: Housing Supply and Affordability, NYU Furman Center 8/20/18

Some affordable housing advocates question the premise that increasing the supply of market-rate housing will result in more affordable housing. This paper addresses the key arguments these “supply skeptics” make. Considering both theory and empirical evidence, the authors conclude that adding new market-rate homes moderates price increases does make housing more affordable to low- and moderate-income families.

At the outset, the authors review the relevant studies and conclude that “the preponderance of the evidence shows that restricting supply increases housing prices and that adding supply would help to make housing more affordable.” They then turn to several arguments the supply skeptics make. One key issue is whether adding housing in a part of the housing market will affect prices in another. The housing market is not uniform but composed of various submarkets. These submarkets relate to each other in complex ways. Critically, however, if demand forces up prices in a higher-end submarket, some buyers will turn to the next segment down and bid up prices there, generating a cascade. Adding supply at higher levels reduces this cascade and relieves price pressure all the way down. Empirical research indicates that this “filtering” process happens surprisingly quickly.


Supply skeptics may also fear that construction of new housing will exacerbate affordability problems by raising neighborhood rents or prices, fueling gentrification, and potentially displacing existing residents. New construction can have both positive and negative effects on prices or rents of nearby homes. New housing may an amenity that makes a neighborhood more attractive – and expensive. But it also absorbs demand and may reduce the incentive to upgrade existing housing to please high-end buyers. The evidence on the net effect of these effects is unclear. An important California study indicates that the production of market rate housing was associated with a lower probability that low-income residents in the neighborhood would experience displacement. But more research is needed.
The authors point to additional disadvantages of limiting supply, including pushing lower-wage workers to live in distant suburbs, where long commutes add to regional traffic woes and greenhouse gas emissions. They stress, however, that increased supply, while essential, is not sufficient to address the affordability challenge. Government intervention through subsidies and other measures is critical to ensure that housing supply is added at prices affordable to a range of incomes, and especially the lowest ones.

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  1. Housing
  2. Zoning

Zoning for Accessory Dwelling Units

by Amy Dain, for Pioneer Institute of Public Policy Research and Smart Growth Alliance, July 2018 (This study updates a 2004-06 study on ADUs by the Pioneer Institute.)

Even in the midst of a housing crisis, zoning laws prohibit most homeowners in cities and towns around Boston from adding accessory dwelling units (ADUs) to their single family houses. An ADU is an apartment within or behind an own- er-occupied single family house that appears from the street to be a single-family as opposed to a two-family house.

Homeowner-voters can be reassured that new rental hous- ing that could be added as ADUs would be highly dispersed and barely visible. The houses are owner-occupied; the land- lord lives next to the ADU renters, so the risk of property-ne- glect or loud parties is minimal. The houses also have to look like single family houses. Since household sizes are shrinking, new residents in ADUs might maintain current neighborhood population densities, but are unlikely to increase them.

Moreover, ADUs are permitted at such low levels now — only 2.5 permits annually per municipality where they are allowed — that permitting levels could increase substantially without being at all noticeable in neighborhoods. If the region were to average five permits per municipality per year across 100 municipalities, over a decade, ADUs could provide 5,000 apartments, dispersed among 538,000 single family houses. Less than one in 100 houses would have an ADU, yet the new rentals would house thousands of people.

Click HERE for the full report.

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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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