A Cooling Housing Market with Sky-High Prices

It looks like college students and those suffering from pandemic-induced breakups forced to move back in with their parents will have to suffer for a bit longer. Despite the real estate market in Massachusetts slowly cooling down, prices continue to be exorbitant, which means the majority of those who are looking to purchase continue to be out of luck.

Housing trends are predictable for the most part. Every year, the fall and winter seasons cause slowing while spring and summer sales run rampant. This is evident as people scramble to get settled before it comes time to register their kids in a new school district, or they simply don’t want to pack up and move during snowstorms.

But the pandemic completely displaced the market and, more vulnerable communities are struggling. This includes historically marginalized groups and those who are leading financially stable lives but want a little more. Regardless, it seems that we are all out of luck these days.

The market may be slowing down as we head into the colder months, but that doesn’t mean prices will change much. Normally with lower demand, we see lower prices, but experts expect pricing to remain high and near the same rate as the last year.

In fact, prices are estimated to be up by nearly 30%, even now, according to The Warren Group. That can be as much as $100,000 for single-family residences in some cases. Very few people can afford that jump, so the new normal seems to be that buyers are willing to wait.

If prospective buyers love a home, but it’s priced out of their reach, they are willing to wait a week and see if it’s still on the market before making an offer at a lower price. Buyers are also slowing down on their willingness to waive all contingencies, including inspections. With less competition for winning contentious bidding wars, many sellers realize the hard way that overpricing their home and taking advantage of the market is no longer a right of passage in this market.

The reality is that there is no longer a crystal ball and no way rely on past price increases to sell a home at the top of the market. It seems as though we are heading into a calmer season that may reap major benefits for buyers who were previously left out of the blazing market. While you may not find substantially lower prices, you may find peace of mind in not having to wave every contingency to simply find a place to settle down.

While, there’s certainly no shame in moving back in with parents or crashing on a friend’s couch as you wait for things to blow over, but recent data shows that we might be headed in a more favorable direction. So don’t unpack your blender and rock collection just yet!

In the meantime, you might also consider townhomes or condos that have a lower markup rate than a single-family standalone. Or, wait until later this year when traditional trends take hold and see if there is a break in your favor. The market might be correcting and it may advantage patient buyers.

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Massachusetts Startups Seeing Major VC Success

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Venture capital investment has seen an uptick as business leaders still try to grasp where America is headed next. With significant changes in the economy in the last year, many VCs have adapted their spending strategies and, as a result, more funding than ever has been funneled into startups promising innovation and brighter, better futures.

As for Massachusetts? The Commonwealth ranks third in the entire country for venture capital investment, falling behind only New York and California. 

This year, Bay State startups have received more funding in the past six months than they have in the entire year of 2020 - totaling an incredible $17.4 billion to a core group of Massachusetts-based startups.

While COVID-19 negatively impacted many businesses, the overwhelming characteristics for companies who score funding is either a thriving business despite COVID-19, or a direct capitalization on the pandemic’s ill-effects. That is to say, the services they offer were more in demand during the pandemic than they were before, or their value and success have scaled so much that it’s led to a sharp increase in VC interest. Companies garnering funding include biotech, cybersecurity, and e-commerce institutions,  earning Massachusetts the well-deserved number three spot overall in the country for VC investment. 

Unsurprisingly, the healthcare industry has boomed during the pandemic, which explains the increase. And successful biotech companies, such as Adagio Therapeutics and Affinivax, have been just two of the more recent companies that benefited from the increase in VC funding.  With the race toward the COVID vaccine and the demand for adaptable, high-tech healthcare systems and technology, VCs have rapidly shifted their attention to startups like these. As a result, it’s more important than ever that these enterprises continue their research and development momentum to ensure that they can keep up with demand.

Cybersecurity firms Snyk and Aura also received a hefty amount of funding. The world has been turning increasingly virtual this last decade but nothing quite  propelled the space like the onset of COVID.  Consumers turned online to conduct business, shop, and socialize - leading to a concurrent increase in demand for quality cybersecurity systems. Similarly, Boston-based high-tech company, Circle, raised $440 million in May alone, cementing its position as one of the top cryptocurrency brands to take over the market. 

While the investment in cybersecurity and biotech is impressive, none fared as well as online sales and marketplaces. Perch, a Massachusetts-based e-commerce brand, landed $775 million during the first six months of 2021. Deemed the largest 2021 deal in Bay State, Perch’s substantial funding is entirely on par with a post-pandemic world leaning into online sales.

Each of these companies puts the Commonwealth on a hopeful path toward a recuperating, post-pandemic economy. We can expect the trend to continue through the second half of 2021 with hot spots including green tech, software, cybersecurity, biotech, and e-commerce spheres, all promising futures for investment groups. 

Massachusetts is the only New England state to rank in the top ten venture capital-backed states. Though Connecticut sits 14th with a total of $1.4 billion in funding raised, Massachusetts far outweighs its neighbor.

Massachusetts Transportation Bill Set to Improve Quality of Life

Better roads, bridges, sidewalks, and commutes are on their way to the Commonwealth, all in the hope of creating safer, sustainable, and more accessible transportation and infrastructure. The Massachusetts House has unanimously approved a transportation bill that would improve roads and infrastructure across the state via the state’s Chapter 90 grants. The bill currently awaits Senate approval before it will officially be written into law.

Who is Funding the Improvements?

All funds are allotted through the state’s Chapter 90 grant program -  a state-wide reimbursement program that pays cities back for work performed on pre-approved projects. On a base level, these projects must actively preserve or improve capital projects or their longevity. The formula used to determine what the state, or more specifically, the Department of Transportation will cover, depends on the number of residents in a municipality, the extent of repairs needed, and the length of the road, bridge, or other structure targeted for improvement. From the standpoint of Massachusetts’ municipalities, Chapter 90 projects are typically 100% reimbursable – making them an important source of local aid for much needed repairs  

How Are Funds Allocated?

Nearly $300 million in funds will be funneled through the Department of Transportation to cities and towns for a significant increase in projects over the course of the next fiscal year:

· $95 million will go toward Massachusetts’s municipal small bridge program, focused on repairing or constructing new bridges that are not reimbursable from other government funding sources .

· Another $50 million will be awarded to the mass transit fund, double the initially proposed amount of $25 million.

· $25 million will go directly to the Massachusetts Department of Transportation

· $25 million will go towards traffic congestion issues, particularly in densely populated areas

· $25 million will be funneled into electric vehicle infrastructure, including charging stations for the ever-growing line of electric cars.

· $25 million is committed to transit infrastructure that supports pre-existing major transit, including adding additional bus stops and lanes.

· The remaining funding is held for local municipalities that need help with projects that would make it easier for residents to use the already established transit options and stations.  

Who Does it Help?

In addition to better roadways, bridges, and transportation for residents, including workers and commuters, this program is also expected to promote equity, especially when accessing public transit,  heavily travelled routes, and other major traffic corridors. Adding connections will expand the transportation network to reach residents previously excluded and easing the burden on families sending their children to school or decreasing commute times to high-paying jobs if they do not access to a car or cannot drive.

Keep your eye out in the coming weeks for more information from this as the Senate debates. If you’re curious about how this new transportation bill may affect you, check out: https://landline.media/massachusetts-house-approves-boost-to-local-road-bridge-funds/ and https://www.bostonherald.com/2021/07/02/massachusetts-senate-passes-300-million-transportation-infrastructure-bill/ for more details.

How Cannabis Home Delivery is Bridging a Racial and Socioeconomic Gap

On the heels of marijuana legalization in Massachusetts, it was only a matter of time until home delivery became the new normal. And thanks to passionate groups like Massachusetts Cannabis Association for Delivery, the day has come; recreational marijuana has been cleared for delivery across the state. As a result, many are rightfully wondering what its short- and long-term implications will be, including how it intends to mend the failed policies of the War on Drugs.

 The Massachusetts Cannabis Control Commission (CCC) has announced that they have approved eleven companies for the licenses necessary to distribute marijuana to homes. Of the near dozen, three of them have already begun operations. Two of those brands include Drizly’s sister company Lantern, which plans to serve Boston, and Your Green Package, which serves Northampton. The third business is Freshly Baked, a veteran-owned and operated business based in Taunton, and credited with the very first delivery in the state.

How do businesses become eligible for delivery?

The process to be approved for delivery is relatively straightforward, beginning with obtaining a license from the CCC. Of course, there are some that find the requirements for licensing to be a bit difficult and tedious, even though such regulation is all for a good reason. Because Massachusetts is endorsing and facilitating recreational home delivery, it requires care and precision in order to maintain a regulated market, especially one that whose stated goal is to remedy the negative impacts of the Failed War on Drugs.

Requirements include a strict delivery process where all transactions are recorded by a body camera and  delivery vehicles must be equipped with GPS for constant monitoring. Additionally, two delivery staff will be present in the vehicle and all customers are required to provide identification to receive their order.  The CCC has also established  only two license types   cannabis delivery. The first is for retailers  with preexisting storefronts, which can begin to license their products for delivery via in-house staff or through a service similar to the restaurant’s DoorDash and Uber Eats.

The second option is for those who are entirely independent of a preexisting physical business. Instead, these businesses may purchase their supplies from a mass producer and sell those products directly to customers. Again, both are legal and viable options, but each has its own set of advantages and drawbacks . Regardless, many have praised the policy for being inclusive, rather than gatekeeping certain businesses by only allowing physical retail locations to participate.There is hope that more disadvantaged populations, particularly people of color through well-established economic empowerment applicant process, will thrive with the new delivery business.

Bridging a Racial and Socioeconomic Gap Via Delivery

 The Commonwealth is also making some much needed  strides in closing a long-seeded gap in its history. Most notable is the announcement that delivery  licenses will only be available to those who participate in the economic empowerment program for the first three years after home delivery was approved. This program is dedicated to introducing more people of color to the cannabis industry, allowing them to prosper as entrepreneurs without the traditional hurdles. Massachusetts creating licensure and programs that aid rather than inhibit minority-owned businesses is a step in the right direction of a long, overdue fight toward elevating people of color.

https://www.news10.com/news/marijuana-home-delivery-services-launch-in-massachusetts/

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Tackling Climate Change and the Housing Crisis

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A proposed bill intersecting real estate and renewable energy is headed to the state legislature for consideration. If passed, it will have major effects in Massachusetts, particularly around the dual housing and climate crises.

Led by HERO, the Housing and Environment Revenue Opportunities Coalition, this bill paves the way for both environmental and housing policy solutions. The bill calls for more funding to be diverted toward climate adaptation and green, affordable housing options for those at risk. 

Most unique is HERO’s pathway to get there. To raise adequate funding, the coalition aims to raise the Massachusetts deeds excise tax, nearly double it in fact, to raise annual revenue to approximately $300 million. Proceeds would be funneled into projects that directly support the intersections of energy efficiency and affordable housing. 

If you’re wondering what a deeds excise tax is in Massachusetts, you’re not alone. To put it simply, the excise tax is a fee paid to the state once a home is sold. The fee as of now, and for the last thirty years, has been roughly $2.30 for every $500 of home value. This equals out to $1,140 for a $250,000 home and scales upwards -- meaning a hefty fee for luxury home sales. 

According to HERO, the collected revenue would be split equally between environmental and housing efforts. Proponents of the bill are hopeful that more Massachusetts residents will be able to afford sustainable housing to mitigate greenhouse gas emissions. Not only would the programs help those in need find quality housing, but they would also support the nation-wide need to address climate change. 

The bill would effectively act as an all-in-one solution for the two major policy problems the Commonwealth is facing.Unfortunately, it seems that neither issue is easily solved by the solutions that Massachusetts has implemented in the past, as the dual housing and climate crises continue to grow at exponential rates. HERO is hopeful that this will change with the passing of this bill, which has already received both Senate and House support in its early stages. 

How Are Housing and Environmental Policy Related?

Both climate and housing conditions directly feed off of one another and are facing critical threat levels. With new developments being built that do not implement green energy, the climate crisis continues to worsen.  At the same time, new developments can price out vulnerable populations, leaving inadequate properties in vulnerable areas to those in need. Oftentimes those in the most vulnerable communities are the ones who are most likely to face the effects of climate change or  housing insecurity.

The good news is that, in effectively addressing just one of these issues, policies can also alleviate the other. For example, building new affordable housing that is energy efficient targets both the housing and climate crisis.. With this proposed bill, HERO aims to address both issues at the same time, recognizing how closely they’re related. 

FIND OUT MORE

https://energynews.us/2021/07/08/mass-bill-would-double-real-estate-fee-to-fund-clean-energy-affordable-housing/

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Urgency Has A New Meaning

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As spring transitions into summer in New England and emergency restrictions come to an end, the news has been trending to less urgent matters. However, that’s not saying much considering how ultra-urgent things have seemed for the past year. On another timeline where the road was less rocky, this week’s news might feel more urgent than it does today. 

Is a millionaire’s tax urgent when the state is rolling in billions of dollars in federal economic relief? Is the fact that businesses are scrambling to hire enough employees urgent if you’re being paid to stay home? Is the building of a fossil fuel-powered peaker plant urgent when a bank of batteries might suffice just fine? Is the Transportation Climate Initiative (aka TCI) urgent? Apparently not to Connecticut and ten other states that signed on and then off. We debrief on all these topics below. 

In a bright spot in this week’s news, two cities in the Bay State topped Safewise’s list of the 100 safest cities in the U.S. That’s something! 

Read all about the topics below and then charm your cronies with your clever conversance on current crises in Mass. politics. 

Politics

“Millionaire Tax” will be on the Ballot in 2022

A constitutional amendment that would raise the income tax on wealthy Massachusetts residents passed the Constitutional Convention, and the so-called “millionaire’s tax” will be included on the 2022 ballot. 

The proposal calls for an additional 4% tax on all household income above $1 million. This is in addition to the current flat income tax rate of 5%. The Department of Revenue estimated that the measure could generate as much as $1.9 billion in additional taxes. 

Senate President Karen Spilka and House Speaker Ron Marian defended the proposal in a joint statement. 

“As Massachusetts recovers from the COVID-19 pandemic, and as we prepare for our future, we have a unique opportunity to move towards a Commonwealth that truly works for all residents... We stand with the residents of Massachusetts in exploring new ways to increase revenue for the state as we envision and invest in an equitable and hopeful future for the Commonwealth.”

The proposal has the backing of the Raise Up Coalition, a group of labor, faith, and community organizations, who said in a statement:

“Long before the pandemic, Massachusetts needed new investments in our transportation and public education systems. These investments are needed now more than ever to lift up our economy for everyone and to ensure Massachusetts remains a great place to live, work, and raise a family. Massachusetts needs sustainable, long-term revenue for these investments that doesn’t require low- and middle-income families to pay more.” 

The proposal is getting some fierce blowback from business leaders who point to the fact that tax revenues are more than $1.8 billion ahead of projections through April and that the state is collecting another $5.3 billion in federal COVID-19 relief aid.

Read all about it at Boston Business Journal.

More Politics

Business

Bay State Businesses “Scrambling” To Hire Workers, Pony Up Higher Pay

As the state opens for business, Massachusetts employers are “scrambling to hire enough workers to meet their reopening needs and the pent-up demand from patrons who want to go out again,” according to a story in the Boston Globe.

Some businesses in the state are increasing wages and adding hiring bonuses to attract applicants. Also being offered are deep employee discounts on products and services for new hires. 

According to the report, this comes at a time when weekly unemployment claims in the Bay State have fallen to their lowest levels since the pandemic-forced lockdowns. The shortage of workers could hamper economic recovery while increased wages are likely to lead to rising prices on some goods and services in Mass. 

Meanwhile, according to the US Labor Department, employers added 559,000 jobs in May. 

Here’s the full report: These companies are raising wages and offering bonuses to attract more workers in Mass.

More Business

Energy

Is Proposed “Peaker Plant” Already Obsolete?

A proposal for a 55-megawatt natural gas-powered “peaker plant” has come into question as environmental activists and local residents express concern over unnecessary greenhouse gas emissions and ground-level pollution. The group claims that future regulations will make fossil fuel burners non-competitive and leave consumers on the hook for the $85 million plant. 

In May, a group of 87 health care professionals sent plant operator Massachusetts Municipal Wholesale Electric Company (MMWEC) a letter urging them to consider battery storage rather than continuing with the current plan. 

A “peaker plant” runs only at times of peak demand — estimated to be no more than 250 hours per year. And many feel the plan is obsolete given advances in clean energy storage over the past six years since the plan was first proposed. The cost of utility-scale storage has fallen nearly 70% between 2015 and 2018, according to the U.S. Energy Information Administration. And it has fallen even further since. 

The MMWEC last month paused the plan for at least 30 days to address community concerns and reevaluate possible alternatives. The group contends that the facility’s emissions would be lower than those of 94% of fossil-fueled peaker plants in New England. Since then, two of fourteen municipal utilities that signed on to the project have filed paperwork asking to be released from the agreements. 

Energy News has more on this story.

More Energy News

Transportation

Massachusetts & Rhode Island Only Two States Left in TCI Agreement

Connecticut is the latest state to drop out of the Transportation & Climate Initiative (TCI) agreement as Gov. Ned Lamont abandoned the program amid state budget negotiations on Friday. Only Massachusetts, Rhode Island, and Washington, D.C. are left.

TCI, a regional collaboration originally consisting of 13 Northeast and Mid-Atlantic states and the District of Columbia was developed to promote clean energy transportation. Under the plan, transportation fuel suppliers, or wholesalers bringing fuel into Massachusetts, would be required to purchase “allowances” (aka carbon credits) for any carbon dioxide their fuel produces. 

According to original estimates, CTI could bring in about $500 million a year in new revenue for Massachusetts alone, to be invested in clean transportation solutions.

Visit the Boston Herald for more info.

More Transportation News

Real Estate

Two Mass. Cities Top List of 100 Safest 

Home prices in Hopkinton, Massachusetts, and Franklin, Massachusetts are about to go up. The two cities have topped Safewise’s list of the top 100 safest cities in the country. 

More than two-thirds of the cities that made the list are in New England and the Mid-Atlantic region. And Massachusetts has the second-highest number of cities on the list with 17. 

Hopkinton, which is east of Worcester has a population of just over 18,500 and a median income of over $95,000. Franklin, just west of Foxboro, is home to more than 33,000 residents with a median income of just under $102,000.

“These crime-curbing communities have cause to celebrate,” writes Safewise. “The 100 cities in our roundup boast a collective violent crime rate that’s 92% lower than the national average. And, when it comes to property crime, our top 100 locales report 79% fewer property crimes per 1,000 people than most of the US.”

The full report can be found here.

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Cannabis

Indoor Cannabis Cultivators Using 10% Of All Industrial Energy Use in the Bay State

According to estimates by the Northeast Sustainable Cannabis Project, indoor cannabis cultivation is responsible for about 10% of all industrial electricity consumption in Massachusetts. That’s pretty high.

According to Cannabis Business Times, the 10% estimate “is based on current indoor cultivation lighting standards and the assumption that half of the growing canopy square footage authorized for use is currently in use.” 

Back in 2018, the Massachusetts Department of Energy Resources estimated that the energy required to power grow lights for 660,000 square feet of canopy would negate the entire energy savings of $11 million from DOER's program to convert more than 130,000 streetlights statewide to LEDs. 

Since then, the Cannabis Control Commission has authorized more than 1.1 million square feet of indoor marijuana cultivation. That’s about four times the area of outdoor cultivation facilities in the state. Moreover, the cannabis sector in Mass. is expected to triple in size by the time supply and demand level out. 

More Cannabis News

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Our First Post-COVID Summer

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As the pandemic winds down and Massachusetts comes out of hibernation, attention is turning to figuring out how we’re all going to have a great summer. But no matter how the summer shakes out, there are going to be some winners and some losers.

In politics, projecting winners and losers in the upcoming elections depends highly on who’s in and who’s out of each race. Voters are on the edge of their seats as announcements are expected to come this summer.

On the climate crisis front, renewable energy is winning market share while big oil is losing ground. The hospitality industry is winning now that emergency restrictions have all but ended, but Uber and Lyft are losing money due to a lack of drivers. And we’re not sure who’s going to be the winner and who’s going to be the loser in a battle between the Commonwealth and New Hampshire over income taxes on out-of-state workers.

And with that, let’s delve into Mass. political and business news-of-the-week: 

Politics

The Summer Blockbuster Coming To a Voting Booth Near You

“A blockbuster showdown for governor,” is the Boston Globe’s prediction for the upcoming gubernatorial race. The report also mentions the “wide-open race to be the state’s top prosecutor,” and a ”primary between a secretary of state on the verge of history and a fellow Democrat trying to unseat him.” It sounds like those dramatic narrators in 1980s movie trailers.

The story revolves around the state’s 2022 state election cycle. “It’s greased by uncertainty, and fueling the potential for a gamut of history-making races,” writes, the Globe’s Matt Stout, “and possibly, widespread change at the top of state government.”

The suspense is intense. An ensemble of six statewide constitutional officers, including Governor Charlie Baker, Attorney General Maura Healey, and Secretary of State William F. Galvin, have not yet said whether they’ll seek reelection, leaving room for a major twist and making the ending very hard to predict.

The Boston Globe has this detailed review of the blockbuster event of the summer coming soon to a voting booth near you.

More Politics

Business

A Biden administration official is siding with Massachusetts in a lawsuit brought by New Hampshire’s Gov. Chris Sununu over the state’s right to collect income tax from remote workers who live out of state. As you might guess, this case will have a rippling effect that could shape the future of remote work as numerous other U.S. states are also grappling with this dilemma. 

Currently, the Bay State requires out-of-state workers to pay 5% income tax. (Oddly, however, for those who commute to Mass., say, three out of five workdays, only 40% of the wages would be taxable.)

Sununu calls the new rule a “direct attack on the New Hampshire Advantage, attempting to pick the pockets of our citizens,” adding that more than 100,000 New Hampshire residents may be impacted by the rule. 

In a major turn of events in this case, Elizabeth Prelogar, the acting U.S. solicitor general, filed a brief Tuesday siding with Massachusetts. The brief states that the U.S. Supreme Court should not hear New Hampshire’s case against Massachusetts. 

“Individuals often have tax obligations to multiple sovereigns,” says Prelogar. “Although New Hampshire might prefer that its residents not pay personal income taxes to any government, an independent tax obligation falling on a state’s residents generally is not an injury to that state’s own sovereign prerogatives.”

Not everyone agrees. For example, Paul Diego Craney, spokesperson for nonprofit conservative think tank the Massachusetts Fiscal Alliance, says, “President Biden’s administration has continually advocated for new taxes, higher taxes, and more complex taxes,” adding that it “comes as no surprise that the president is now standing shoulder-to-shoulder with Governor [Charlie] Baker in their quest to tax workers who have virtually no ties to the state.” (We’re taking that with a grain of salt considering the group would likely find a different complaint if the Biden Administration sided with New Hampshire.)

Sununu remains confident the Supreme Court will hear the case. “Try as they might, overreach by Washington politicians and efforts by the Biden administration will not deter [New Hampshire] from fighting against Massachusetts’ unconstitutional attempt to tax our citizens,” Sununu said.

Read all about it at MassLive.com.

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Energy

Big Oil Getting Swept Up In Renewables Movement

Big changes are afloat as big oil starts to examine the global repercussions of climate change. The industry is reeling recently from several major setbacks. As a sign of the time, the obstacles are coming not just from government regulators, but also from the corporate shareholders themselves. 

British oil giant BP (which got out of the solar business over a decade ago) sees the writing on the wall and is scurrying to bolster its renewable energy business. For one example, last summer, BP sold its petrochemicals business and partnered with Norway-based Equinor to develop four wind energy projects off the coast of Massachusetts. 

BP is also planning to significantly expand its renewables footprint with the purchase of 9 gigawatts of solar projects for $220 million and plans to increase its annual investments in wind and solar projects by 10-fold to around $5 billion a year. Meanwhile, the company is working on plans to reduce its oil and gas production.

The acquisitions and changes in direction are intended to help BP reach a goal of growing its renewable energy output to 20 gigawatts by 2025 and 50 gigawatts by 2030, and to achieve net-zero emissions by 2050. 

The Houston Chronicle has more on this story.

More Energy News

Transportation

“Driver’s Wanted” — for Boston Rideshares

With covid restrictions lifted, the Mass. hospitality industry is optimistic about a resurgence. However, getting back to normal (or settling into a new normal) isn’t going to be as easy as chicken pie. There are bound to be numerous challenges.

One of those challenges is a dearth of rideshares in and around Boston. Visitors to the Bay State are saying that a lack of Uber and Lyft drivers is spoiling their vacations.

“I had to try Uber 3 times and couldn’t get a car. Lyft finally came through after about 15-20 minutes of trying,” said Lakesha Carter, who is visiting from Florida. “It was a little scary because I’m here as a solo traveler, just to explore the city and it almost felt like oh boy, what am I going to do if I don’t find a car?”

In a statement, Uber says the company is offering incentives to gig workers to get back into the driver’s seat. “In 2020, many drivers stopped driving because they couldn’t count on getting enough trips to make it worth their time,” adding that now in 2021, “there are more riders requesting trips than there are drivers available to give them.”

Source: Visitors to Boston say shortage of rideshares hurting travel

More Transportation News

Cannabis

Trulieve Brand Cannabis Coming to Mass. June 3

Multi-state operator Trulieve Cannabis Corp. will be hawking its products at its Northampton, Massachusetts shop beginning June 3. Trulieve, which recently secured a $2.1 billion deal to merge with Harvest Health & Recreation Inc, recently obtained the Massachusetts Cannabis Control Commission's approval to begin recreational and medical marijuana sales at the location.

The merger with Harvest Health gives Trulieve operations in 11 states, with a cultivation and processing capacity of 3.1 million square feet spread across 22 facilities, plus 126 medical and recreational dispensaries. The combined company is expected to generate around $1.2 billion in 2021.

"As the first adult-use market on the East Coast, Massachusetts is a leader in the cannabis industry, and we are excited to open our doors here," Kim Rivers, CEO of Trulieve, said.

Read more at Benzinga.

More Cannabis News

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Growing Back

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With nearly 50% of residents fully vaccinated, and the state rapidly expanding business and home vaccination programs, Massachusetts has gone from having one of the worst records on vaccination to one of the best in the country. As a result, most restrictions put in place to fight the pandemic will be lifted in the coming weeks — just in time for some summer fun in the sun.

In other news this week, Democrats in Massachusetts must now contend with an army of young adults who are fluent in social media marketing and venturing into politics. This is a fascinating trend that politicians ignore at their own risk.

On Beacon Hill, the idea of a $1,200 “Back To Work” bonus is being kicked around. In energy, Massachusetts is becoming the “Saudi Arabia of Wind.” The T is gearing up for a massive increase in ridership. Residential property taxes are on the rise along with home prices. And (federally legal) hemp is now being sold in (federally illegal) marijuana shops.

Let’s unpack this week’s news.

Politics

Democrats in Massachusetts Must Now Answer To Growing Demands from Savvy Teenagers

An influential new force is rising in Democratic politics. Even though they aren’t even old enough to vote, teenagers have been organizing to promote progressive candidates. 

To give you some idea of the power that this demographic is claiming, one only needs to look at Edward Markey’s surprise upset over Joe Kennedy in last year’s Democratic primary here in Massachusetts. Kennedy was the odds on favorite to win. That is until “an army of 16-year-olds,” as one political veteran put it, took to the internet to paint Kennedy as standing too far to the right on important issues.

The new movement is making centrist politicians in the Massachusetts Democratic establishment a bit nervous as these youngsters know their way around social media better than any of them. The young activists smell that fear and are empowered by it. 

Last year saw an explosion of new voter registrations as the number of 18 to 24-year-olds shot up to 20.9% in the 2020 primary from 6.7% in 2018, and 2.1% in 2016. That is according to data provided by Tufts’ Center for Information and Research on Civic Learning and Engagement. Considering that most elections are won by less than 10% of the vote this changes everything.

The teens are operating sophisticated grassroots campaigns using chat groups, direct messages, and automated and manual text messaging to mobilize their friends and followers into a volunteer PR army.

Last summer, teens on TikTok were able to pull a fast one on President Trump. They waged a campaign to reserve seats at a Trump rally in Florida. Trump even boasted about the numbers before the event. When the time came to count heads, the number was far less than expected. Although this is dirty politics, the success of that campaign has emboldened teens to put their collective weight behind candidates who they feel have their best interests at heart.

These efforts have been so successful that some candidates’ PR teams have reached out to leaders of the movement for campaign help. And for those candidates who stand to lose the most, bashing these teens is not an option as it could easily backfire, draw their ire, and result in serious damage to their careers.

The movement is sure to affect upcoming elections — such as the race for mayor of Boston. This is a fascinating story that candidates on all sides ignore at their own peril.

Boston.com has an in-depth report on the movement.  

More Politics

Business

$1,200 “Back To Work” Bonus Proposed For 2022 Budget

Massachusetts lawmakers are considering putting a “Get Back to Work Bonus” in the fiscal year 2022 budget. The idea is to help employers who are having trouble filling positions while trimming the state’s unemployment bill. 

Budget amendment 811 was proposed by state Sen. Ryan Fattman. The plan calls for using funds from the $1.9 trillion federal American Rescue Plan to pay Mass. residents up to $1,200 to land and keep a job. Fattman essentially wants to “repurpose” the $300/month federal unemployment bonuses to incentivize people to get back to work. 

In a conversation with MassLive, Fattman had this to say:

“I’ve been contacted by a lot of businesses, local employers, restaurants, trucking companies, and they’re all struggling to find people to work for them. All this is designed to get people back to work into those positions so the economy can thrive.”

Although the state unemployment rate dropped to 6.5% in April, the bonus would be welcomed by Massachusetts businesses still scrambling to fill vacant positions ahead of the state's reopening on May 29.

According to a recent U.S. Census survey, millions of Americans are avoiding work for fear of contracting or spreading COVID-19. And many are content to collect unemployment benefits for as long as possible.

Other states are also considering similar measures. Connecticut and New Hampshire recently announced plans to award successful job hunters bonuses up to $2,000. Meanwhile, several red states are looking at axing the extra $300/month unemployment payments offered by the federal government claiming that the free cash incentivizes residents to stay home. 

Read all about it as MassLive.com.

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Energy

Massachusetts Becoming the “Saudi Arabia of Wind”

Last week we told you about the final federal approval of the Vineyard Wind project. In two years, 62 turbines will begin generating about 800 megawatts of electricity. That’s enough to power 400,000 homes. 

As huge as that is, it’s not the whole story. All told, offshore wind developers, are planning to produce 9,100 megawatts from 13 offshore-wind projects along the East Coast within the next five years and then 30 gigawatts by 2030. That’s the equivalent of about 30 coal-fired power plants. 

As the price of generating wind energy plummets, Massachusetts is looking at a clean energy boom. Once the project is up and running, Vineyard Wind is projecting a cost of six and a half cents per kilowatt-hour. (Cape Wind has been charging over 20 cents per kilowatt-hour.)

Erin Baker, professor and faculty director of the Energy Transition Initiative at the University of Massachusetts says costs have fallen “much more in the last five years than any of the experts were predicting.” 

Baker co-authored an article in Nature in which she predicted that the cost of wind energy will be cut in half between now and 2050. And Kathleen Theoharides, the state’s energy and environment secretary, told conservative-leaning Intelligencer that Massachusetts is being dubbed the “Saudi Arabia of wind.” 

Check out Intelligencer’s detailed report here.

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Transportation

MBTA Trains and Buses Expected To Get Crowded As Massachusetts Reopens

As COVID-19 restrictions are lifted across Massachusetts, public transportation is beginning to ramp up again. Subways and busses in the Bay State are expected to get crowded as commuters’ rideshare options — including services such as Uber and Lyft — have been evaporating.

The fact that a set of new Chinese-Made Subway Cars has malfunctioned for the fourth time isn’t helping matters. 

Crowded public transit vehicles pose a risk of spreading covid to the unvaccinated. To assure this doesn’t happen, MBTA riders will still be required to wear masks. 

Boston 25 News reports that the MBTA is “monitoring ridership and plans to quickly and safely build back service.”

Meanwhile, if you’re thinking of hitting the road next weekend, plan on leaving early. Officials are expecting Memorial Day traffic to increase substantially over 2020’s numbers as restrictions are lifted and residents with pent-up cabin fever begin to venture out.

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Real Estate

Residential Property Taxes Are On the Rise

With the Mass. residential real estate market on fire, homeowners might be wringing their hands over the increased value of their properties. However, there’s a downside to the exploding valuations. That is along with the rise in home values comes a rise in property taxes (which have already been on the rise in recent years).

The state of Massachusetts requires property values to be reassessed every year. And according to SmartAsset, homeowners in Massachusetts already pay some of the largest annual property tax bills in the country with a median annual property tax bill of $4,899, with a higher-than-average effective tax rate of 1.17%.

Boston 25 News has more details on this story.

And for those who are interested, here are the 50 Massachusetts communities with the highest residential tax rates.

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Cannabis

CCC Issues Guidance For the Sale Of Hemp Products At Mass. Dispensaries

In an industry full of ironies, up until now, Mass. marijuana dispensaries were not allowed to sell hemp products such as CBD oil. That is even though marijuana is federally illegal while hemp (cannabis strains with negligible levels of THC) has been completely legal for more than two years. 

And there are still restrictions. In order to clarify requirements and restrictions the Massachusetts Cannabis Control Commission has issued Guidance for the Retail Sale of Hemp.

Under new rules, marijuana retailers are able to purchase “consumer-ready hemp products,” but only from hemp processors licensed by the Massachusetts Department of Agricultural Resources. And the products may only be sold in a dedicated section of the store.

Furthermore, hemp all products must be accompanied by an insert that includes the following warning language:

“This product was produced, packaged, and labeled by a Massachusetts hemp processor licensed by the Massachusetts Department of Agricultural Resources (MDAR). It is not regulated by the Massachusetts Cannabis Control Commission and the product may not be consistent with the requirements of M.G.L. c. 94G or 935 CMR 500.000. Consumers that have questions or concerns about this product are encouraged to contact the manufacturer, MDAR, or the appropriate state or federal agencies.”

Whitelisted products include hemp seed, hemp seed oils and powders, hemp clothing, and non-food CBD products — as long as no medical claims are made.

And although consumers can purchase CBD oil (and edibles such as gummies) at a myriad of shops throughout the state, the sale of hemp products is not permitted at marijuana treatment centers — only at dispensaries. 

Which leads to this question: What if a licensed marijuana grower grows “marijuana” with less than 0.3 percent THC? Does it count as hemp? Or can they sell it the same way they sell marijuana? As it stands, high-CBD, low-THC products produced by licensed growers are treated no differently than high-THC products. 

Read the complete guidance document for the retail sale of hemp at Mass. marijuana dispensaries here.

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