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Viewing Affordability in New Ways
Flush with the success of its first affordability research, the Center for Real Estate hosted its first annual housing affordability conference last May. More than 120 people, including planners, developers, local government officials, nonprofit-housing representatives, and bank executives, were on hand to learn about two more HAI research projects. If attendees hoped for another breakthrough perspective, they weren't disappointed.
The center unveiled a prototype index, the Rental Housing Affordability Index, that tracks the availability of low-priced housing throughout Greater Boston. The index assigns a numerical score to each town by evaluating the availability of affordable housing against other criteria such as access to employment.
Affordable-housing lenders can use this index as a guide to target where investments will provide the most benefit to the region. Developers can use it when considering where to build and in making their cases before planning boards. The data can also help policymakers, such as the Massachusetts Department of Housing and Community Development, in evaluating regional policies.
Recognizing the value of having affordable housing in proximity to jobs in the Boston region, MassHousing, a quasi-public agency that provides financing for affordable rental housing projects, and the Federal Home Loan Bank of Boston provided funding for this research. Pollakowski says that indices based on other income brackets are scheduled to be released in coming months.
"Having an affordability index that is informed by access to employment may create a different series of decisions," says Thomas R. Gleason, executive director of MassHousing. "More information is needed on housing in this market, both subsidized and unsubsidized, to make good lending decisions," he says.
Another study presented at the May conference analyzed land use in the Boston area between 1997 and 2001. Lynn Fisher, an assistant professor of real estate in the Department of Urban Studies and Planning, and her colleagues studied the size of lots for 34,000 new single-family detached homes built during that time.
Their research showed that median lot size was nearly an acre, unusually large by both historical and national standards. The implications are clear. "By limiting the supply of available land for development, larger lot sizes constrict the future supply of job-accessible housing in all price ranges," Fisher says.
Fisher is quick to note that affordable housing can be found in a variety of ways. "People in the real-estate industry tend to get fixated on new construction," she says, "but it's important to remember that renting is a perfectly legitimate way to afford housing. Also, lower-cost housing is typically older housing. There is usually a large stock of older houses and, consequently, renovation is an important tool for increasing affordability that should not be overlooked."
Sometime this year, the initiative expects to produce a report on the extent to which workers such as nurses, teachers, police, and firefighters are able to afford housing in the communities they serve. "In fact, we don't really know who those workers are, what kind of incomes they have town for town and household for household," says Fisher. "So, it's unclear how dire their situation is."
But HAI will soon bring some clarity. Poring over detailed census data, a squadron of graduate students spent last summer creating a profile of those workers and their income distribution in the same 161 towns covered by the Rental Housing Affordability Index. Like all the research being conducted by HAI, it exemplifies a willingness to look at the problem of affordability from all perspectives and in fresh ways. That makes sense, because--as HAI personnel will tell you--the problem of affordability is being redefined, all the time, by a host of factors.
Guest (Glen Browning)
The maintenance factor in affordability
As a new first-time homeowner, I am beginning to recognize an often "hidden" factor in a homes affordability... maintenance. In my opinion, affordability - at least when applied to home ownership - cant be determined without an understanding of what maintenance costs will be involved as the home ages.
I would find it very interesting to see some in-depth research into what types of home construction are most "affordable" in the long run. My own experience has been that there are alot of contradictory and unfounded beliefs about construction materials and methods that muddy the water significantly. Exactly how well does a wood-framed house compare to a house with metal studs in the long run? From a maintenance standpoint, how do conventional foundations compare to slab foundations?
Guest (Colin)
Im guessing that these statistics and algorithms will maximize city planning, bank loans, and a plethora of ancillary benefits. All to the good of the public, government, and corporations.
This knowledge, in itself, is of great value. Other cities, governments, and corporations could make better decisions with the help of good planning aids.
The big question is will this information be shared?
Guest (John)
Is it just me, or does Lynn Fischers remark "renting is a ...way to afford housing" seem a bit Marie Anntoinette-ish?
And couldnt it be said that by limiting the supply of land, all lot sizes will be less affordable?
I just think the researchers are kind of off in what "low income" is? I finally graduated college and am making slightly less than their "low income" amount and I am feeling rich...but not that rich.
Guest (Lilia Mallik)
Hello. I want to talk about towers.
Hello. I just had an idea about building super structures and super edifices. We may need to build structures within cities that are much more densely populated that todays buidings.
In todays apartment rent housing, people are probably unhappy with rents, space, roaches, and noise. We might need to find out more knowledge about construction and building techniques for building some of these structures in the future. If we can use technology to combat some of these problems, it will all be better for all of us.
Sincerely,
Lilia Mallik
Guest (Lilia Mallik)
Hello, I want to talk more about towers.
In any super structure or super edifice, we need to put very heavy emphasis on safety and evacuation and safety during fires, terrorist attack, or disasters. We may need to explore issues with air defense or homeland security when we think about building these types of these. We need to seriously deal with peoples fear and trepidation about some of these issues. We could also think about lunar housing, etc.
We can also consider building housing underground or underwater. We should always think about quality of life issues for people.
Guest (Lilia Mallik)
Hello. I want to talk about towers.
Hello. I just had an idea about building super structures and super edifices. We may need to build structures within cities that are much more densely populated that todays buidings.
In todays apartment rent housing, people are probably unhappy with rents, space, roaches, and noise. We might need to find out more knowledge about construction and building techniques for building some of these structures in the future. If we can use technology to combat some of these problems, it will all be better for all of us.
Sincerely,
Lilia Mallik
Guest (Lilia Mallik)
Hello, I want to talk more about towers.
In any super structure or super edifice, we need to put very heavy emphasis on safety and evacuation and safety during fires, terrorist attack, or disasters. We may need to explore issues with air defense or homeland security when we think about building these types of these. We need to seriously deal with peoples fear and trepidation about some of these issues. We could also think about lunar housing, etc.
We can also consider building housing underground or underwater. We should always think about quality of life issues for people.
Guest (Lilia Mallik)
Hello. I need to talk about housing affordability.
Hello. I wanted to talk about factors affecting housing affordabilty. I believe that geotechnical, geothermal and green technologies, etc. may be able to be used for lowering utility and energy costs for homeowners.
But, we need to furthur explore the issues involved with these technolgies to ensure that they are cost effecient, economically benficial and are financially sensible.
These such technologies should ideally really giving a real return to the consumer very quickly. So, people will definitely see the value in their long-term investments in these types of systems.
Guest (Lilia Mallik)
Hello. I think that there are problems in the financial system that worsen the problem of housing affordability. There is a problem in the appraisal process involving banks in many communities. Investors, activists, and politicians should all try to get more involved.
Guest (Lilia Mallik)
Hello. I just wanted to talk about housing affordability.
I believe that housing affordability is affected by the number of occupants that are allowed to live within an apartment unit or housing unit. The more people are allowed to live within a space, i.e. two family home, etc. then housing usually becomes more affordable. The occupancy and landlord restrictions will probably have an effect on housing affordability.
Guest (John)
Is it just me, or does Lynn Fischers remark "renting is a ...way to afford housing" seem a bit Marie Anntoinette-ish?
And couldnt it be said that by limiting the supply of land, all lot sizes will be less affordable?
I just think the researchers are kind of off in what "low income" is? I finally graduated college and am making slightly less than their "low income" amount and I am feeling rich...but not that rich.
Guest (Lilia Mallik)
Hello. I need to talk about housing affordability.
Hello. I wanted to talk about factors affecting housing affordabilty. I believe that geotechnical, geothermal and green technologies, etc. may be able to be used for lowering utility and energy costs for homeowners.
But, we need to furthur explore the issues involved with these technolgies to ensure that they are cost effecient, economically benficial and are financially sensible.
These such technologies should ideally really giving a real return to the consumer very quickly. So, people will definitely see the value in their long-term investments in these types of systems.
Guest (Lilia Mallik)
Hello. I think that there are problems in the financial system that worsen the problem of housing affordability. There is a problem in the appraisal process involving banks in many communities. Investors, activists, and politicians should all try to get more involved.
Guest (Lilia Mallik)
Hello. I just wanted to talk about housing affordability.
I believe that housing affordability is affected by the number of occupants that are allowed to live within an apartment unit or housing unit. The more people are allowed to live within a space, i.e. two family home, etc. then housing usually becomes more affordable. The occupancy and landlord restrictions will probably have an effect on housing affordability.
Guest (Mike)
Nice to see a study that makes sense. It would be terrific if this concept was expanded throughout the US so Real Estate Developers could guage the best areas to build in, including innner city areas that need extensive renovation. Here in the Detroit area, we have a lot of run down areas that hold tremendous potential. A tool like this could show Civic Leaders where to place the most emphasis to make the area grow, and bring in more tax revenues.
FYI - I spent 20+ years living in SOuthern California, which is no longer the affordable state it was back in the 50s, 60s and to some extent the 70s. I moved because it was impossible to buy anything bigger than a 1100 sqft condo ($140K in 1995 - now selling for over $400K).
Guest (Glen Browning)
The maintenance factor in affordability
As a new first-time homeowner, I am beginning to recognize an often "hidden" factor in a homes affordability... maintenance. In my opinion, affordability - at least when applied to home ownership - cant be determined without an understanding of what maintenance costs will be involved as the home ages.
I would find it very interesting to see some in-depth research into what types of home construction are most "affordable" in the long run. My own experience has been that there are alot of contradictory and unfounded beliefs about construction materials and methods that muddy the water significantly. Exactly how well does a wood-framed house compare to a house with metal studs in the long run? From a maintenance standpoint, how do conventional foundations compare to slab foundations?
Guest (Colin)
Im guessing that these statistics and algorithms will maximize city planning, bank loans, and a plethora of ancillary benefits. All to the good of the public, government, and corporations.
This knowledge, in itself, is of great value. Other cities, governments, and corporations could make better decisions with the help of good planning aids.
The big question is will this information be shared?
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Guest (Mike)
Affordability and Investments
Nice to see a study that makes sense. It would be terrific if this concept was expanded throughout the US so Real Estate Developers could guage the best areas to build in, including innner city areas that need extensive renovation. Here in the Detroit area, we have a lot of run down areas that hold tremendous potential. A tool like this could show Civic Leaders where to place the most emphasis to make the area grow, and bring in more tax revenues.
FYI - I spent 20+ years living in SOuthern California, which is no longer the affordable state it was back in the 50s, 60s and to some extent the 70s. I moved because it was impossible to buy anything bigger than a 1100 sqft condo ($140K in 1995 - now selling for over $400K).
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