The cost of rent and housing has been steadily increasing in Massachusetts while wages have remained stagnant, making it increasingly difficult for people to find a place to live. Local officials can reverse this trend by pairing zoning reforms that open up high demand areas to increased market-rate construction with inclusionary zoning requirements that ensure housing options exist for families who cannot afford market prices.
The Crisis
There is no doubt we are facing a housing crisis. The state has seen tremendous economic growth in recent years, but the supply of housing has not kept pace with the demand. As a result, the cost of housing has skyrocketed, and many families are being priced out of their homes. The problem is driven by local zoning codes that restrict the construction of new housing in high-demand areas. These codes often date back to the mid-20th century, when the state was facing a different set of challenges. In light of the current crisis, it is clear that these codes need to be updated to allow for the construction of more housing. Only by increasing the supply of housing can we hope to address the affordability crisis that is currently gripping the state.
There is no one-stop solution, however. Market-rate construction often fails to provide enough units, and with such an extreme shortage of available housing in the first place, these new homes are quickly scooped up with higher-than-asking bids or all cash offers from families desperate to own a home. This naturally pushes housing prices above affordable limits.
On the other hand, affordable housing construction requirements that are too onerous or designed to favor NIMBY-ism (Not In My Backyard) can make housing unviable where it is needed the most (and it’s needed everywhere now). This has the unintended consequence of depressing the overall amount of housing that is added in high-demand areas. This, in turn, can create a negative effect on housing affordability.
Local officials must judge the effectiveness of their housing policy combinations by two measures. First, is the supply of market rate housing allowed to match demand in desirable areas? Keeping in mind that this housing crisis affects many tenants who would not qualify for affordable housing vouchers, so their housing demand must be met as well. Second, are there enough designated affordable housing options to fill the cracks left by a white hot housing market?
A Two-Pronged Solution
Allowing market-rate housing development of all kinds - including duplexes, quadplexes, and mixed-use apartment and commercial buildings - in high-demand neighborhoods can help to solve the supply side driver of housing affordability. Density can bring welcome change to Massachusetts neighborhoods, in the form of abundant housing options, without the devastating effects of gentrification when allowed in areas throughout the state, and not just the urban core.
Duplexes, quadplexes, and other multiplexes are an efficient use of land and infrastructure, and by allowing them in higher-demand neighborhoods, we can create more affordable housing without displacing current residents. Mixed-use development combining residential with retail or office space is another way to increase density while providing amenities and services that residents need.
The inclusionary zoning mandates that are popular in Massachusetts today can work alongside the modernization of zoning codes to ensure that market-based construction does not leave anyone behind. When used together, market-rate construction and inclusionary zoning create abundant, affordable housing in high demand areas.
References and Further Reading
Worcester Weighs New Policy to Increase Affordable Housing - WGBH, May 25, 2022
Fixing Greater Boston's Housing Crisis Starts with Legalizing Apartments Near Transit - The Brookings Institute, October 14, 2020
Surging Prices and Scarce Inventory Are Driving Greater Boston's Apartment Hunters to Their Wits' End - Boston Globe, March 15, 2022
Is Inclusionary Zoning Creating Less Affordable Housing? - Strong Towns, April 11, 2018