Worcester Business Journal

wbjournal.com | June 11, 2018 | Worcester Business Journal 21 Let's start with reasonable zoning laws We need to build more homes V I E W P O I N T E D I T O R I A L W orcester County and especially the city of Worcester are in a homebuilding crisis. e very limited supply of available homes is pushing home prices higher – single-family sale prices have increased 9 percent in Worcester County in 2018 – but the rate of new construction for both single and multi-family homes remains far below their pre-recession levels. Worcester County is building fewer homes com- pared to the rest of the state. In 2003, Worcester County accounted for 18 percent of all homes built in Massachusetts; from 2013-2016 it never exceed- ed 9 percent of the statewide total. Our central city's role in the homebuilding industry is decreasing as well: In 2003, the city built 19 percent of homes in the county; by 2016, that number was 5 percent. Despite having the second highest population in the state, Worcester ranked 30th in the number of homes built (487), falling behind several communities in Greater Boston, and regional suburbs like Hopkinton, Framingham, Natick and Boxborough. Getting back to pre-recession inventory and pric- ing levels isn't necessarily the goal – as the econom- ic downturn was in part driven by a nationwide bubble in the housing market – but with demand increasing and supply tightening significantly, the region should add new inventory at a rate ensuring prices remain reasonable, without flooding the housing market. To that end, Gov. Charlie Baker's proposed Housing Choice initiative includes a multi-pronged T he Realtors in my office will frequently tell their clients all real estate is local. ey say that for a very good reason; because it's true. e market conditions in one area are frequently different than the market condi- tions in another area. And those areas could be next to each other. However, there is a trend debunking that well-used phrase: e lack of homes for sale across the entire state, including Worcester and Worcester County. When I say lack of homes for sale, I mean historically low number of homes for sale. In the city of Worcester, the April inventory of single-family homes dropped 39 percent over April of last year. Looking back five years, inventory has gone down 160 percent compared to April 2014. is type of inventory decrease isn't limited to the city. Worcester County is experienc- ing similar drops. April inventory is down 28 percent from April 2017 and down 55 percent from April 2014. What hasn't gone down in that time is prices. e median price of a single-family home in the city of Worcester in 2018 is up almost 8 percent from 2017 to $245,000. From April 2014, the median price is up almost 47 percent. Worcester County is seeing median price increases of 9 per- cent from April 2017 and up 17 percent from April 2014. We're in a true supply-and-demand market. e scarcity of homes is not only pushing prices up on those homes for sale, but also keeping would-be sellers from selling because they are concerned they won't be able to find a home to move to. is keeps rents very high. Simply stated, we need to build more homes and more apartments to meet the demand in Worcester, Worcester County and across the state. If we can do that, then housing will be more available and more affordable. e first thing we need to do is recognize this is a state- wide problem calling for statewide solutions and not 351 individual ones. We need to promote smart land use, reduce red tape and remove barriers to local housing development. It's the Massachusetts Association of Realtors position in the short-term (the next three-to-five years) the best way to start to make a dent in this inventory crisis is by making it easier for communities and our housing production allies to allow accessory dwelling units and create additional zoning for multi-family housing. ere is more to do in the long-term as well. On the bright side, it looks like recognition of this inventory crisis is starting to happen as Gov. Charlie Baker introduced his Housing Choice initiative. is is a statewide initiative is an incentive-based program designed to increase production. e Massachusetts Association of Realtors looks forward to working with the governor, the state legislature, cities and towns to create more housing. Because if we don't address this problem now, the strong Massachusetts economy helping make our state one of the best in the country and bringing a renewed vibrancy to Worcester will falter. And that's something we can't afford. Rita Coffey is the 2018 president of the Massachusetts Association of Realtors and general manager of Century 21 Tullish & Clancy in Weymouth. BY RITA COFFEY Special to the Worcester Business Journal Rita Coffey The Worcester Business Journal welcomes letters to the editor and commentary submissions. Please send submissions to Brad Kane, editor, at bkane@wbjournal.com. WO R D F R O M T H E W E B W piece of legislation to change laws around zoning and building regulations, the first such effort since the 1970s. ere's a lot to like and debate in the bill, but a key aspect of it – and a critical element to the reform – is removing the restriction that says communities needing a supermajority to overturn zoning, and instead instituting a simple majority vote. Massachusetts is one of only 10 states requiring a supermajority for zoning changes, according to the Baker Administration. In a city like Worces- ter – which is more built out than its surrounding towns and has new rental housing projects bringing new residents to the city – simplifying the ability to change land uses makes a lot of sense. e 365 apartments at the 145 Front St. development in downtown Worcester starting to come online this year could end up making this the most productive year for homebuilding in Worcester since 2005, when 501 new homes were built. e site the Front Street complex was built on a former shopping mall and an expansive garage, so rezoning clearly has its benefits. Enabling local governments to more easily change their zoning, enables them to adapt better to modern land uses, like the urban apartment lifestyle the Front Street project will provide. e local, state and national housing markets are complex animals requiring a wave of people wanting to buy, wanting to sell, and reaching a price both those parties want to buy and sell at. By taking a simple step in changing how zoning regulations can be streamlined, Massachusetts can help local governments remove obstacles slowing the pace of homebuilding. e state legislature ought to get this done this year. Tweets of the week "Senate is proud to be among the top commercial contractors in this year's Book of Lists by the @WBJournal!" - Senate Construction (@senateconcorp), June 5, on being named to the WBJ's Book of Lists for the top commercial contractors. "CES has served @HarringtonCare since 2004, and we're excited to partner with them as they embrace #sustainability and #renewable options!" - Competitive Energy Services (@CES_Energy), June 1, on a WBJ story about a 1,048-kilowatt solar facility at Harrington HealthCare's Webster hospital. Facebook feedback "Yeah because they fired 300 IT workers." - Trave Harmon, May 29, on a WBJ story about Framingham retailer TJX Cos. $716 million in first-quarter profits "Pawtucket Red Sox GM Dan Rea was in attendance as well. … I wonder why he would attend this groundbreaking?" -Steve Quist, May 22, on a WBJ story about the groundbreaking of the Harding Green mixed-use housing project in the Worcester Canal District W

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