HOUSING A CHANGING CITY: BOSTON 2030

Center for New Urbanism: March 31, 2017

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A Growing City

Population will be more than 700,000 for the 1st time since 1950’s

– Household sizes were much larger

We expect 48,000+ new households– Requires 4,000 – 6,000 new units

of housing per year

Challenge for a city that has been densely developed for more than 100 years

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While we grow, demographics are changing

Growing number of seniors

– 53 percent increase in senior population between 2010 – 2030

Students, millennials, + individuals living in traditional workforce housing

– 101,013 individuals sharing housing, driving up rents and sale prices

Boston has 28,400 low income households who are rent burdened.

We expect 9,750 new low-income households by 2030

38,200 households will need affordable housing

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How we’re respondingOctober 2014: Housing a Changing City: Boston 203053,000 new units by 2030– 20,000 middle income– 6,500 affordable – 5,000 seniors– 18,500 dorm beds (5,000 middle

income)

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Results to dateMore than 40,000 units in development process:

• 19,238 units permitted or completed

• 21,865 units in development review + permitting process.

To date, we have started or completed:

• Low income: 1,515 units • Middle income: 5,574 • Senior: 264 units• Dorm beds: 3,548

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Early successes

• As 12,000 new units came on line, rents for existing stock decreased 4 percent citywide 2015-2106.

• Demand for new housing units remains strong: average rents rose 18 percent between 2015 - 2016

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Early successesMarket responding at all levels• Increased interest in middle-income markets as developers

move out of the downtown core:– More than 1/3 of production in more moderately priced neighborhoods– This has allowed us to reach 83 percent of our target rate of

production for middle income

City and developers all collaborating to increase production • Extra ZBA hearings for small projects• Technical upgrades at ISD have shortened timelines and

streamlined process• BRA has embarked on planning exercises for strategic growth

areas

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Early successesQuickly moving resources for affordable housing• Since Mayor Walsh took office, the City has committed more than

$100m to affordable housing • More than 1.4m sf of City-owned land either currently on the market or

under agreement with developers• Allowing us to meet our affordable housing goals – we are at 93 percent

of target for this point in the plan

Transit oriented development• 74 percent of housing starts from 2014 to date within 5 minute walk to

transit

Healthy dorm pipeline• Nearly 3,600 beds permitted; pipeline of private development taking

shape

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Through New Urbanism’s mirror: What’s working?

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Honoring + preserving neighborhoods

Strategic Planning areas– Use underutilized land along transit

corridors to accommodate growth– Create new, dense neighborhoods,

planned with appropriate open space and access to transit

Restrictive zoning– While increasing density + height

along transit, rezone adjacent neighborhoods for lower height • Reduce neighborhood impact• Preserves buildings and character

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Creating mixed income neighborhoods

Support mix of housing types + income levels

– Inclusionary Development creates affordable housing in expensive neighborhoods

– Investing affordable housing dollars in all neighborhoods

SPA’s such as JP/Rox support a variety of affordability types

– 40 percent affordability– Combines w density + market

rate housing

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Considering transportationCreating housing near transit

– 74 percent of new units within 5 minute walk to transit

GoBoston2030 sets aggressive mobility goals to connect neighborhoods

– Every Boston neighborhood to be interconnected using all modes of travel

– All homes within 10-minute walk of rail station, bus, Hubway + car share

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Adaptive Reuse• Reuse historic buildings for

housing wherever possible.• Zoning allows higher density

than new construction • Surplus schools created

thousands of affordable elderly apartments.

• Boston institutions have taken part– Churches– Schools– Municipal buildings

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City resources to preserve neighborhoods

Neighborhood Homes Initiative– Use City owned land to create

moderately-priced 2-3 family homes– Pre=approved designs compatible with

neighborhood character

Designate City-owned buildings for housing + other amenities

– Limit or forbid demolition• Fowler Clark Farm• Charlestown Armory• Upham’s Corner Comfort Station • Meridian Street Library

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Commitment to open space• Since 2014, nearly 300,000 sf

City property used for urban ag, urban wilds, community gardens, and open space – Additional 150,000 sf in

process • Administration goal: every

resident in Boston living within ten minute walk to a park

• Parks budget increased every year since Mayor Walsh took office

• $60m from the sale of Winthrop Square will renovate Boston Common + Franklin Park.

Garrison Trotter Urban Farm

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Boston’s Main Streets• Supporting Main Streets key to

Boston’s growth: vital districts become attractive destinations for buyers + renters

• 20 districts critical to maintaining Boston’s neighborhoods’ unique sense of place.

• Independent 501c(3)s, flexibly funded allow neighborhoods to make their own choices

• Walkability of districts keeps dollars in the community + offers amenities to residents.

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Through New Urbanism’s mirror: What’s NOT working?

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Regional challengesNearly 20 percent of Boston’s housing stock is deed-restricted affordable

– Highest in the nation

Of 31 municipalities in Greater Boston, only 8 meet or exceed the State’s 10 percent 40b threshold

– If every community met 40b, would create 11,500 affordable units

– If every community matched Boston, would create 56,700

Doing well regionally with economic development; housing has not followed suitIt is time for a regional housing plan

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The need for speedGrowth requires 6,000 new units annually

– Land acquisition, labor, materials expensive

– Developers build at lowest cost– Generic architecture replaces good design;

City has not been demanding enough– Challenging to create a sense of place at

speed But if we sacrifice speed, risk displacement

– Supply + demand means the market will continue to escalate

– Affordability diminishes

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SprawlEven in a dense, old, built city, we have sprawl

– South Bay– American Legion Highway

Can diminish economic life of Main Streets districtsNeed to be mindful of permitting + impact on existing neighborhoods

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Challenge of building for diversity

High costs + demand make it challenging to build for a mix of income levels

– Major downtown development skewing high-end.

– Mid-market areas of the city: production costs $416,000/unit

– Rent + sales prices in outer neighborhoods often need subsidy to be feasible.

– Some neighborhoods are still too segregated

0BR 450

nsf

1BR 650 nsf

2BR 850 nsf

3BR 1,050 nsf

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$1,8

00

$2,6

00

$3,4

00

$4,2

00

$1,7

25

$1,8

48

$2,0

94

$2,3

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Rent Required For Financial Viabil-ity100% AMI Affordable Rent

COSTS OF PRODUCTION IN MIDDLE-CLASS AFFORDABLE MARKET AREAS

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Takeaways• Continue the practice of identifying areas of

growth and preservation• In areas of growth, insist on public amenities and

infrastructure• Be intentional about small commercial growth and

walkability • Create regional connectivity• Don’t lose Boston

– Resist big box growth– Limit demolition

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Thank you so much!

@BostonNeighbor bit.ly/HousingBoston2030