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HOUSING A CHANGING CITY: BOSTON 2030

Allston Brighton CDC:

May 26, 2016


A growing city • Boston’s population will reach 700,000 for the first time since the 1950’s, when household sizes were much larger • Expect more than 48,000 new households • Since beginning of Walsh administration: 48,000

– 5.9m sf of new commercial space completed; 3.8m sf in construction; 10m approved

• This means new jobs and new residents; we estimate this will require 4,000 – 6,000 new units of housing per year • This is a challenge in a city that has been densely developed for more than 100 years 2


Boston is changing Demographics •

Growing number of seniors – 53 percent increase in senior population between 2010 – 2030 – 22,400 fewer units of housing available for Boston’s workforce as more and more seniors age in place

Students, millennials, and individuals living in traditional workforce housing – 101,013 individuals in the city are sharing housing, driving up rents and sale prices

Currently 28,400 low income, rentburdened individuals; will increase by 9,750 new low-income households by 2030; – 38,200 households will be in need of affordable housing

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These demographics put pressure on Boston’s middle class

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How we’re responding October 2014: Housing a Changing City: Boston 2030 53,000 new units by 2030 – – – –

20,000 middle income 6,500 affordable (low-income; non-elderly) 5,000 seniors 18,500 dorm beds • Reduce undergrads in neighborhoods by 50 percent

– Help 5,000 first time homebuyers purchase homes

This is a 20 percent increase in housing stock. 5


Results to date More than 35,000 units in development process: 68% of 53,000 unit target. • 17,183 units permitted or completed • 18,644 units in development review + permitting process.

Of these, 2,554 – 7 percent – in Allston + Brighton

To date, we have permitted: • • • • 6

Low income, non-elderly : 1,377 units Middle income: 4,044 Low-income senior: 284 units Dorm beds: 3,548


Production numbers: Allston + Brighton Completed since 2014 OWNER RENTAL TOTAL

Total 87 558 645

Affordable 38 68 106

% Affordable 44% 12% 16%

Total 18 213 231

Affordable 0 26 26

% Affordable 0% 12% 11%

Affordable

% Affordable

334

19%

Under construction OWNER RENTAL TOTAL

Active development pipeline OWNER RENTAL TOTAL

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Total TBD TBD 1,728

Should we have a number for existing housing stock in Allston Brighton?

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Allston + Brighton: Fun facts • Of the City’s affordable units, 16 percent are located in Allston + Brighton • 6,486 students living in Allston + Brighton – 2,874 undergraduates (44 percent)

• Allston + Brighton have 19,984 rental units; 14.3 percent of City’s total rental stock. – – – –

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1BR 2BR 3BR 0 BR

44 percent 36 percent 13 percent 7 percent

(8,715) (7,284) (2,605) (1,380)

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Rental data 1 BR ALLSTON BRIGHTON

2014 Q1-16 CHANGE $1,500 $1,675 12% $1,615 $1,750 8%

2 BR ALLSTON BRIGHTON

2014 Q1-16 CHANGE $2,000 $1,850 -8% $1,950 $1,975 1%

3 BR ALLSTON BRIGHTON

2014 Q1-16 CHANGE $2,400 $2,450 2% $2,400 $2,800 17%

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Allston’s market pressure is on smaller units – 12 percent increase in 1BR

Brighton’s market pressure is on family size units – 17 percent increase in 3BR

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What’s working? Market 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

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What’s working? Quickly moving resources for affordable housing • Nearly $66m on the street to fund affordable housing in past year • More than 1.4m sf of City-owned land either currently on the market or under agreement with developers – the majority for affordable housing

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

Healthy dorm pipeline • More than 3,500 beds permitted; pipeline of private development taking shape 11


The challenges Limited buildable space • Only 48.4 square miles buildable • Old, dense city -- nearly all land already developed

Zoning • Lack of consistency in zoning had led to protracted community process • Lack of predictability for developers Density • Community traditionally concerned with density

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The challenges (cont’d) • High construction costs: – In mid-market areas of the city, production costs of $416,000/unit require rent of $4.00 per net sf

• Need greater regional response: – Nearly 20 percent of Boston’s housing stock is deed-restricted affordable -- highest in the US. – Of the 31 cities and towns in Greater Boston, only 8 meet or exceed 40b 10 percent threshold

• While construction costs increase, Federal funding for affordable housing has decreased in the last five years 13

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Our response: Planning for growth Housing Boston 2030 plans for growth thoughtfully, with minimal impact on our existing neighborhoods.

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Our Strategies • New resource development – Updating City’s Inclusionary Development Policy. – Rising Linkage revenues: $12.2 million FY15 date. – New FY16 Senior Housing line item

• Supporting CPA

• Strategic planning areas – New neighborhoods adjacent to existing neighborhoods – Use underutilized land along transit corridors 15

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Our Strategies (cont’d) • Thoughtful use of City land – 250 parcels of City-owned land to promote development of moderately priced homes

• City + developers collaborating to increase production – Extra ZBA hearings for small projects – Technical upgrades at ISD have shortened timelines and streamlined process – BRA is planning for growth 16

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What’s next? • Need to see a better response in elderly housing production • Construction and land costs continue to make middle income production challenging • Homeownership remains a challenge – Costs and denial rates remain high

• Gentrification – as neighborhoods improve, protect long term residents from displacement We need your ideas and energy 17

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Thank you so much!

Questions? Find us – @BostonNeighbor

Housing plan – bit.ly/Boston2030 18

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Abcdc annual meeting 2016 sheila dillon  
Abcdc annual meeting 2016 sheila dillon  
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