FROM THE EDITOR To our readers: America is in the middle of a reckoning on race unlike any seen in decades, and businesses across the country are trying to figure out how they can respond. As part of Banker & Tradesman’s mission to keep the real estate and banking industries informed, this week we are launching an occasional series exploring the ways these issues relate to both sectors, and how lenders, developers and real estate agents can help address them. – Managing Editor James Sanna
THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS
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County close-up: Dukes and Nantucket Spotlight: Edgartown
IN PERSON
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Connolly Brothers originally made a name for itself on the North Shore by building grand seaside estates during the Gilded Age. After joining the company in 2007 as a project manager, Jay Connolly was named president of the 140-year-old firm early this year.
WEEK OF MONDAY, JULY 20, 2020
RESIDENTIAL REAL ESTATE BY THE NUMBERS
LAND-USE LEVERAGE
33 percent Only about one-third of Black households in Greater Boston own a home. See Bram Berkowitz’s story on page 10. Source: Federal Reserve Bank of Boston
79 percent Seventy-nine percent of white households in Greater Boston own a home. See Bram Berkowitz’s story on page 10. Source: Federal Reserve Bank of Boston
1997 The Black homeownership rate in Greater Boston is the same as it was in 1997. See Bram Berkowitz’s story on page 10. Source: Zillow
$9.95 million The price of the most expensive home in this week’s Gossip Report. See page 9. Source: The Warren Group
11.3 percent There are 11.3 percent fewer luxury listings in Greater Boston in June year-over-year. See Week on the Web on page 2. Source: Zillow
7 A 2004 study found half of all Black and Latino homebuyers bought homes in just seven Greater Boston communities. Source: The Harvard Civil Rights Project
2.99 acres The size of the largest property in this week’s Gossip Report. See page 9. Source: The Warren Group
BOSTON CHARTS COURSE TOWARD
DEVELOPMENT WITHOUT DISPLACEMENT
City Expected to Rezone for Racial Equity
BY STEVE ADAMS BANKER & TRADESMAN STAFF
M
unicipal zoning codes contain the essential rules of the road for real estate development: what types of buildings can be built and where, how big and tall they can be and what types of businesses or housing units they contain. In Boston, a city with a history of starkly segregated neighborhoods and pockets of rapid gentrification, officials are contemplating the nation’s first zoning code that looks at current and past discrimination as defined by the federal Fair Housing Act as criteria for approving both housing and commercial project. “The one set of leverage that we do have on private property is our zoning,” said District 1 Councilor Lydia Edwards, whose East Boston district includes the proposed 10.5 million-square-foot Suffolk Downs racetrack redevelopment. Continued on Page 7
52.7 percent The number of listings in the middle fifth of the Greater Boston market by price grew by 20 percent in June. See Week on the Web on page 2. Source: Zillow
Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.
COMMERCIAL INTERESTS
RACIAL INJUSTICE
Low- and Moderate-Income Borrowers Racking Up Missed, Late Payments
Industry’s Past Practices Contributed to Racial Wealth Gap
By Scott Van Voorhis | Banker & Tradesman Columnist
By Diane McLaughlin | Banker & Tradesman Staff
The Average Mass. Homeowner is Hurting
Commercial Real Estate PAGE 3
Deep Roots Underlie Lending Disparities in Massachusetts
Banking & Lending PAGE 9