When the Boston Foundation presented its 2024 annual Greater Boston housing report card at an event Nov. 12, the results weren’t particularly positive.
“This year’s housing report is certainly sobering, it offers further evidence of the challenges we continue to face,” said M. Lee Pelton, president and CEO of the Boston Foundation.
Housing costs have risen greatly since 2015, and while the report found that rent costs have plateaued, they had leveled off at historic highs. At the same time, despite some efforts to support new construction, high construction costs have slowed production. A modest increase in the number of permits issued in the 2010s has given way to another slowdown.
And, all of that is paired with continuing income gaps that leave families’ housing cost burdened — paying more than 30 percent of their income on rents or mortgages. According to the report, the average household income to avoid those burdens clocked in at almost $111,000. More than 50 percent of renters in 2023 were housing-cost burdened; that rises to 59 percent and 55 percent, respectively for Black and Latino renters.
The fixes to some of the region’s challenges around housing supply are also slow to bear fruit, said Luc Schuster, executive director of Boston Indicators, the Boston Foundation’s research arm that produced the report. That means that even as the city and state look to create policies that will support expanding housing supply, results are not yet identifiable in the data and it will take some time before any impacts can be seen.
“Unfortunately,
it just takes a long time to permit and then build all the housing that
we need to dig ourselves out of the hole we’ve found ourselves in,”
Schuster said.
But
researchers who worked on the report have a vision for a big step to
potentially expand access to affordable housing: making unused public
land available for the development of affordable housing.
According
to Katherine Levine Einstein, associate professor of political sciences
and associate director at the Initiative on Cities at Boston
University, even a conservative approach of redeveloping some of that
state and municipal land could net 85,000 new affordable units,
according to the team’s estimates.
“We
have this amazing resource available to us to build more affordable
housing and we are squandering it,” said Einstein, who worked on the
team that developed a special topics section for the annual report card
on the potential to utilize public land.
According
to the report, about 24 percent of the land in Greater Boston is
publicly owned by either the state or municipal governments — though
some portion of that is already used for other things like schools,
public works and conservation land.
But
much of that land is simply vacant. Using the tax parcel database,
Einstein and her team found that among municipalities, about 42 percent
of public land is currently vacant. At the state level, about 17 percent
is unused.
In theory, she said, that land should present an exciting opportunity.
“We
know it is so, so expensive to build more housing in places like
Greater Boston,” she said. “Especially if we want to produce more
affordable housing, what could be better than having free land?”
But
the report identified a number of barriers to expanding the use of
public land, with complicated regulatory processes and public opposition
slowing or preventing the redevelopment.
Beyond
the regular complications of developing multifamily housing, allowing
vacant public land to be converted into affordable housing requires an
official process that requires a city council or town meeting, with
two-thirds majority, to declare the land as “surplus” — effectively
meaning that it is no longer being used for its original purpose. That
process is subject to all the normal bureaucracy of proposals moving
through municipal government.
If
it makes it through — Einstein said that oftentimes the proposals don’t
— then developers are left to a request for proposals, or RFP, process
that she said is important to prevent corruption or sweetheart deals,
but can also hamper development on the public land. For example, the
structure of the process means that developers effectively have to go
through design review processes twice: once during the RFP process and
then again as part of general development.
They
are steps that can also make the project extremely lengthy. According
to the report, for many housing developments, design review can take
significantly longer than the actual construction process.
For
example, the town of Weston acquired a parcel of land in 2018 to build
affordable housing. Six years later, construction has still not begun.
Einstein
said that, in producing the report, the team heard from developers that
often there is greater interest in moving through the regular process
for private land to avoid the additional complications that come with
public land.
Similarly,
Greg Minott, managing principal at DREAM Collaborative, a developer who
sat on a panel discussion following the presentation of the report,
said those limitations can impact where they look to work on projects.
He cited priorities like being able to tackle a project quickly and at
scale, as well as building where doing the work doesn’t feel like an
uphill battle.
“As
developers, what we are interested in is places where it’s easy for us
to do our work,” he said. “It’s an incredibly difficult job and we want
to go where people want housing.”
Obstacles
Throughout
the process community members who might oppose the development of
affordable housing — or oppose the development of affordable housing in
their neighborhoods — can also slow down or prevent approval processes.
Officials
who spoke to researchers for the report identified neighbors as one of
the biggest challenges to developing affordable housing on public land.
Beyond
work around the use of public land, the report highlighted other steps
taken by the state in recent years to work to address expanding housing
supply, including legislation like the housing bond bill passed by state
lawmakers at the end of the legislative session.
That
bill authorized $5.16 billion in bonds, and included legislative
changes like allowing for accessory dwelling units — also known as
granny flats — and the creation of a system for tenants to seal their
eviction records in some cases. It also includes funding for other
housing-related topics, like $150 million in approved bonds toward the
decarbonization of the state’s public housing supply.
Also
highlighted in the report is the MBTA Communities Act, a 2021 law that
requires municipalities on MBTA transit lines, or their neighbors, to
create zoning districts that must allow for the construction of
multifamily housing. That legislation has faced controversy. The town of
Milton, which is eligible due to its proximity to the Mattapan trolley
on the Red Line, rejected a plan for the required zoning district, which
led to a lawsuit by the attorney general’s office that was heard by the
state’s Supreme Judicial Court in October. As of early October, 78
communities had adopted the zoning changes. Another 130 communities are
facing deadlines under the law by the end of the year.
The
work comes as Massachusetts faces an ongoing shelter crisis, due in
part to migrants seeking shelter under the state’s right-to-shelter law,
which requires that Massachusetts provide some form of shelter to
families experiencing homelessness.
Last fall, Gov. Maura Healey implemented a cap on that system at 7,500, which the system hit by that November.
Some
of the state efforts include supporting the growth of public housing
across Massachusetts. For example, the housing bond bill includes $2
billion in approved bonds toward the construction and renovation of
public housing.
Sen.
Lydia Edwards, who chairs the state’s Joint Committee on Housing, said a
priority for her is shifting the narrative around public housing from
being a resource for a specific group to being a matter of general
infrastructure.
“I
think a lot of what we were trying to do and need to continue to push
for is the narrative around public housing. It’s not for ‘them over
there’ any more than you think the T is for them over there,” she said.
“It is infrastructure. And you need to see as part of what
commonwealths, what state governments provide.”
Boston
Housing Authority Administor Kenzie Bok said growing the city’s stock
of public housing is a priority. She pointed to the organization’s
history, where, for the first five decades of its existence created
about 14,000 units of new housing, between the 1930s and early 1980s,
before switching to focusing on redeveloping existing units.
“For
us, it’s recognizing that it is actually in our organization’s DNA to
create new units, especially at that deeply affordable level,” she said.
Bok
cited city goals to, within the next decade, build 3,000 new units that
it is allowed under the Faircloth Amendment — a 1990s federal law
capping how many units for which a public housing authority can receive
federal funding. That plan was announced by Mayor Michelle Wu in her
2024 State of the City address in January.
She
also pointed to city work to add density at sites where the Boston
Housing Authority is redeveloping old deeply affordable housing with new
units. She said the Housing Authority expects to add another 5,000
units through that work.
“We’re
really devoted to the idea that we’d love for this to be a decade where
we at least put those 3,000 Faircloth units on the map, we do the
additional development of that 5,000 and we are creating a legacy that
both addresses this very real crisis we’re in and means that decades
from now people will say, ‘Oh, we had a pretty productive decade in the
mid-2020s and on,’” Bok said.