Worcester Business Journal

wbjournal.com | June 26, 2023 | Worcester Business Journal 17 Housing costs aren't limiting hiring Demand for single-family homes in Central Massachusetts has spiked since the early days of the coronavirus pandemic, which caused prices to spike as supply was limited. As inflation rates have risen, the demand for housing has cooled and price increases have begun to moderate, although the supply of for-sale homes on the market has dropped dramatically in 2023. When polled online, two-thirds of WBJ readers said even if they are having difficulty hiring workers, the housing market isn't the reason. Is limited supply of available residential real estate contributing to difficulty hiring? F L A S H P O L L F O C U S #ICBusinessBanking | Insured by NCUA The best bank for your business is actually a credit union. Come chat with one of our Solutions Advisors and let us help you get your business to the next level. We're with you. Commerical Lending Payment Processing Digital Banking Solutions Business Online Banking Yes, applicants are staying away because of the higher cost of living. Yes, housing is one of the many reasons behind our hiring problems. Maybe, hiring is difficult, but I don't know if housing cost is a main factor. No, our region is still more affordable than other areas of the state. No, we aren't having difficulty hiring. 14% 19% 39% 17% 11% Worcester County single-family home sales 2019 2020 2021 2022 Number of sales 8,638 8,870 8,959 7,797 Median sale price $290,000 $325,000 $375,000 $405,000 Source: The Warren Group make more profit constructing larger higher-end homes because expenses like land, utilities, driveway, and foundation are similar for a ranch house versus a larger two-story, colonial-style home, said Eidinger-Taylor. Another factor facing communities around Central Massachusetts has been a migration westward of people who are seeking less expensive housing. With the rise and staying-power of working from home and hybrid work places, people with jobs in Greater Boston or MetroWest communities, which typically have higher salaries, can move to Worcester County. Healey has seen the increase in interest in North Central communities like Fitchburg, Leominster, Gard- ner, and even as far west as Athol, one of the handful of communities that saw an increase in sales in the first part of 2023. North Central boasts an easy commute to Bos- ton, Cambridge, and the North Shore along Route 2 and a commuter rail line. Healey touts the downtown development of Fitch- burg, Gardner, and Leominster, saying people are looking for and finding a real community, rather than just a bedroom community. Worcester real estate agency RE/MAX Diverse, owned by Leominster-native Hejoma Garcia, is aiming to dig into that new market with its purchase of RE/ MAX Patriot Realty in Leominster. "People have to go farther out to get something," said Elaine Evans, a 23-year real estate veteran and leader of the Elaine Evans Group at RE/MAX Diverse. First-time home buyers with kids face another obstacle when choosing a place to settle down: school systems. Evans said even if a community has inex- pensive housing, a buyer with a family may choose not to move there if the schools are of poor quality, cutting down on their already-limit- ed options. Buyers must navigate a sellers market where homes are only available for 15-17 days, which Evans said was a much shorter amount of time than normal. She sees properties fre- quently sell for well over the listing price and has seen an increase in demands from sellers, including sellers who want to stay in the home aer the sale for an extended period of time. Tough time for the sales force e drop in sales has been difficult for brokers who are new to the market. e pandemic saw people getting their real estate license online in order to take advantage of the hot market at the time. Now with fewer sales and more agents, pickings can be slim in the commis- sion-based field. Healey said there are 43,000 Multiple Listing Service participants (agents) in the region who have 3,600 listings to fight over. "I've seen departures from the mar- ketplace," said Eidinger-Taylor, "partic- ularly people new to the market." More experienced agents, with developed Elaine Evans, leader of Elaine Evans Group at RE/MAX Diverse It won't have a significant impact. In response to the rising cost of housing, the City of Worcester enacted an inclusionary zoning policy, which requires new developments to include a certain number of income-restricted affordable units. How do you think this will impact developers' desire to build new complexes in the city? Ellen Steinfeld, senior executive vice president, Berkshire Bank A few developers might stay away, but most will continue plans to build in Worcester. The move significantly alters Worcester's desirability for developers. 55% 26% Continued on next page 19%

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