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Arlington Housing Prices- Out of Reach

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Arlington Housing Prices are Out of Reach
Arlington Housing Prices are Out of Reach
Arlington is an Economically Diverse Place
Arlington is an Economically Diverse Place

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Four Big Housing Challenges In Metro Boston

Data in a Mass Housing Partnership report shows how far behind the Boston metropolitan area has fallen in meeting the housing needs of its citizens. There are four primary categories for measuring the inadequacies: 1. Availability, 2. Affordability, 3. L0cation and Mobility and 4. Equitability. See the full report for more data and examples. Two slides are shown below.

Despite increasing population and job growth, Mass. has one of the lowest rates of housing production in the USA
Average zoning jurisdictions in Mass. arrepresent only 10,000 people. This makes it hard to achieve meaningful, broad public policy goals.
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  1. Arlington
  2. Fiscal Impact
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Housing Developer Math

Dave Weinstock, an Arlington resident interested in affordable housing wondered about the concept of “developer math”. The math involved in planning an affordable housing projects is a problem that needs to get solved in order to have anything built here in Arlington, or anywhere. This topic comes up frequently in community discussions about the need for more housing.

Questions are raised around:

  • 1- Why build so many units vs. smaller buildings
  • 2- Why parking is costly and inefficient use of land
  • 3- Why can’t more affordable or all affordable units be built?
  • 4- The cost of subsidizing affordable units and how that may translate to higher rental rates/costs, etc.

Dave found a great Architecture and Development firm in Atlanta (Kronberg Urbanists + Architects, based in Atlanta GA) that lays out a nice presentation, includes sample proformas, and real life scenarios that may help us understand this piece of the puzzle better when evaluating any project and how developers may be incented to build certain types of projects or do certain types of work.

Here is a link, reformatted to be within this website, to the presentation, showing the varieties of choices, costs, formulas and outcomes developers consider before deciding if the project can be built: https://equitable-arlington.org/developer-math_kua_071420/

Much of our hope for more affordable housing depends on the market forces of capitalism and the willingness of developers to build for good, not just for profit. But the developers must be able to cover their costs. Many communities are highly skeptical of developers, assuming the community will get tricked, the developer will get greedy and the promised housing will be a disappointment. Trust is needed. But so is verification. We all need to learn the developer math.

What are the math factors that a developer considers before deciding to build affordable housing?

Here is a link to the original presentation. https://www.kronbergua.com/post/mr-mu-let-s-talk-about-math

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  1. Arlington
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  4. Social Justice

Exclusionary Zoning in Arlington Began in 1950’s

by Alexander vonHoffman, Joint Center for Housing Studies, Harvard University, February 2006

The case study shows that in the 1970s the Town of Arlington completely abandoned its policy of encouraging development of apartment buildings—and high-rise buildings at that—and adopted requirements that severely constricted the possibilities for developing multifamily dwellings. Although members of the elite introduced the new approach, they were backed by rank-and-file citizens, who took up the cause to protect their neighborhoods from perceived threats.

The report outlines an intentional effort using land use and planning tools like zoning and building approvals, to exclude those with less desirable income or racial characteristics from residing in Arlington. Additional perspectives on Arlington’s exclusionary zoning efforts during this period are reported here.

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Progressing the Cause of Affordable Housing

(Elliot L. is an 8th grader at the Ottoson Middle School)

In the middle of COVID-19, I started to notice a large construction project happening right down the street in our little neck of the woods by Thompson school. I simply assumed it was another apartment building, but after asking the adults of my community, I found it was much more impactful than that. Arlington was supporting a large affordable housing project to be established, along with plans of putting Arlington EATS, a food pantry, below it. This got the gears in my tiny sixth grade mind churning. I began asking questions like: how do you apply to live there? How much does it cost? Do the owners provide you with furniture? Of course, most of those questions were answered by my parents, and then quickly put in the back of my mind. However, the idea of affordable housing stuck with me, especially when you can see it from your front porch. Upon reaching the 8th grade, where I am now, I found myself and every student in my class presented with a year long project trying to make change in Arlington. This assignment, called the Civics Action Project, or CAP, guides students to choosing a local issue they wish to address.

The premise got me thinking. How can I help my community with our rising cost of living and need for affordable housing? Initially, the other students and I were overwhelmed by the magnitude of the issue, and had trouble thinking of a reachable solution.

Despite this, a small group of classmates and I were intrigued by a bill mentioned by Claire Ricker, Arlington’s director of Planning and Community Development, during an informational panel. Ms. Ricker talked about the MBTA Communities Act, a law requiring Arlington to create higher-density housing near the T. We knew we had found our goal, to raise awareness and support zoning for affordable housing as part of the act.

However, as our research continued, we learned of the real function of this legislation. The goal of the MBTA communities act is to build more compact middle income housing. This will make it so people like young adults and downsizers can come to live in this town, building their future and contributing to a diverse community. This is an essential step in the right direction for the town, but our strides need to be longer.

In order to support our goal, we still wanted to learn more about Arlington’s affordable housing needs. We wanted to promote those issues, as well as the missing middle housing we desperately need. Our group started by conducting a survey that we posted on Arlington forums, along with directly sending it to as many people as we could. 60 residents responded, and we then shared these results with Select Board member Len Diggins. Here are some of the most interesting results of this survey!

  • Many people in Arlington still struggle with home, food, and job insecurities.
  • The cost of living has made almost every family surveyed have to change their lifestyle in some way.
  • Over 1/3 of Arlington residents believe their salary is not enough to support their families.
  • 87% of people think Arlington government is making a subpar effort at combating these issues.
  • When asked what they would like to see the town do, Arlington residents supported the idea of building more affordable housing and providing aid and support to local food distribution groups, such as Foodlink or Arlington EATS.
  • About half of residents have heard of and know about the MBTA communities act.

After the results of our survey, along with other actions taken to learn more about the MBTA communities act, my group and I came to a conclusion of our plan: In order to try and make a change in Arlington, we were going to spread the word to as many adults as we could in order to support both the higher-density housing the MBTA communities act is focused on, and lower cost housing. While these are separate things, our thinking is that the more people who can vote and hear about this, the more willing they will be to connect and support the different pieces of the puzzle to solve our housing issue. This is not just a one-time thing. The MBTA communities act is a planned, strategic opportunity to make Arlington a better place for the future. We hope with the information provided, you will also keep the cause of affordable housing progressing as well. Thank you for reading!

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  1. Arlington
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The Color of Law on Sunnyside Ave

I live on Sunnyside Avenue in Arlington, Massachusetts. The neighborhood was built as two subdivisions in 1948, with 42 duplexes (84 homes total). These were starter homes with 792 square feet of finished space plus a basement with a garage. I affectionately refer to them as excellent specimens of mid-century slap-up. They were constructed in the mid 20th century, and the builder just kind of slapped them up.

Here’s one of the original newspaper ads for these homes.

Sunnyide - a Community of Duplexes in Arlington! Priced from $8750!

It’s fun to read the ad copy. The homes are “within walking distance of schools, transportation (MTA) and shopping centers” (a selling point that endures to this day); the lots are “large to provide for individual landscaping” (they’re 3,000 square feet give or take, which is unbuildably small by today’s zoning laws); and the homes have “full-sized dining rooms”, “spacious streamlined kitchens”, and “two large sunny bedrooms” (so much largeness for 792 square feet). I guess this was a time when good salesmanship took precedence over truth in advertising. It was a different time.

I have to admit, they were a pretty good deal. $8750 in 1948 is equivalent to around $95,000 in 2020 dollars; these homes, with the original floor plan, currently sell for around half a million dollars.

However, the part of the ad that most caught my attention was “All Mortgages FHA 25 years”. FHA refers to the Federal Housing Administration, who were the primary mortgage underwriters during the middle of the 20th century. They’re also an example of how the United States used housing policy as a tool for segregation; the FHA was in the business of insuring mortgages for white families in white neighborhoods. The Fair Housing Center of Greater Boston has a short summary of FHA practices. There’s also discussion of the FHA in Segregated by Design.

Which is to say, my nice little neighborhood in East Arlington was likely designed, built, and sold as a segregated development for whites.

Arlington’s biggest period of residential construction was in the 1920’s when we were building an average of 500 homes/year. But there was still a good deal of single- and two-family construction that took place from the 1930’s to the 1960’s — a bit over 5,000 homes. Since the FHA was the primary mortgage underwriter during that period, I think it’s safe to say that my neighborhood was probably not the only for-whites-only neighborhood in town.

I will end with two questions. How do we feel about this bit of history, and what (if anything) should we do about it?

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Arlington & Exclusionary Zoning History

A report by Mass Housing Partnership’s Shelly Goehring looks at Arlington’s housing development history and policies to understand how municipal action and inaction can contribute to housing inaffordability and can limit the population diversity within a community. The report implies that it has been difficult historically for reputable housing developers to work with the regulatory structure within Arlington to get housing built.

Massachusetts has the nation’s 2nd largest gap in homeownership between households of color (31% own homes) and white households (69% own homes).

See the complete report for more information.

1924: Arlington was pro-growth. 1945: Zoning district allows 4 stories, 60 ft building heights
1970’s: Anti-growth movement reverses prior policy Stops multi-family development Reduces density in more zoning districts
2015: Arlington re-examines zoning, begins to see current residents priced out of housing, Transit corridors become more important Master Plan completed
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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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The State of Zoning for Multi-Family Housing in Greater Boston

(published June, 2019)

Overview

To solve the extraordinarily large deficit in housing for the greater Boston region, over 180,000 units of new housing should come on line in the next few years. This deficit is the result of a rapid expansion in in-migration due to new job creation, with no commensurate increase in housing production for the people taking those new jobs.

The report concludes that zoning is a primary culprit in restricting the development of an adequate housing supply, creating a “PAPER WALL” keeping out newcomers. The cost of this inadequate supply is a huge demand for housing which, in turn, bids up the price for available housing. The following “culprits” are considered: inadequate land area zoned for multi-family housing; low density zoning; age restrictions and bedroom restrictions; excessive parking requirements; mixed use requirements and approval processes. Alternative zoning models are suggested.

Elements such as “Approval Process”, “Mixed Use”, “Village Centers vs Isolated Parcels” and “Building Up or Building Out” are considered.

Researcher Amy Dain reports on two years of research into the regulations, plans and permits in the 100 cities and towns surrounding Boston. The research was commissioned by the Massachusetts Smart Growth Alliance and funded collaboratively with: Citizens’ Housing and Planning Association, Home Builders & Remodelers Association of Massachusetts, Massachusetts Association of Realtors, Massachusetts Housing Partnership, MassHousing, and Metropolitan Area Planning Council.

For the full report see: https://ma-smartgrowth.org/wp-content/uploads/2019/06/03/FINAL_Multi-Family_Housing_Report.pdf

For a power point slide presentation see: https://ma-smartgrowth.org/wp-content/uploads/2019/06/04/DainZoningMFPresentationShare2019.pdf

For the Executive Summary see: https://equitable-arlington.org/wp-content/uploads/2019/07/June-2019-Multi-Family-Housing-Report_Executive-Summary.pdf

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