Q4-2017-MultifamilyReport

Q4

2017

AFFORDABLE RATE MULTIFAMILY

TOTAL INVENTORY (UNITS)

UNITS COMPLETED (2012-16)

EXPECTED COMPLETIONS (2017)

Boston Metro

63,594

2,195

515

Providence Metro

24,464

198

205

Springfield/Worcester Metro

20,895

496

-

TOTAL

108,953

2,889

720

AMI INCOME LIMITS - MA A I Income Limits -MA

TRENDS

1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000

1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person • To date, 22,000 new residential units have come on line in Boston, which represents over 40% of the 53,000 Mayor Marty Walsh’s administration promised by 2030. Of the 22,000 completed units, 4,062 are restricted to middle-income households, or families of four that make a combined $125,000. Another 1,682 units are restricted to low-income households, or families of four that make between $21,000 to $62,050. In total, 6,500 of the proposed 53,000 units will be reserved for low-income households. • Annually, The Boston Foundation’s Greater Boston Housing Report Card judges both the affordability and availability of housing in the Greater Boston area. In 2017, the report estimates that housing in Greater Boston will increase by nearly 12% from 2016. • The same report also highlights the need for more multi-unit housing in the Boston metro, which should target two growing demographic cohorts: millennials and seniors. According to data from the Metropolitan Area Planning Council, these two demographics are the only groups expected to grow through 2030. • The Beverly, a long-awaited low and middle-income apartment building offering 239 subsidized units, was completed in the fourth quarter of 2017. Of the 6,000 people that applied for the 239 apartments, only 48 will be awarded to low-income renters (those earning up to $41,400 a year). • In the Providence metro, the rise of the housing market in 2016 lead to rising prices, and in turn meant fewer homes and apartments available for families with household incomes below $50,000. Due to this increasing “affordability gap,” there were 1,561 foreclosure deeds issued, an increase of 32% from the previous year. • The Sisters of Providence, a Catholic religious community, was awarded $750,000 in Community Preservation Act funding from West Springfield to aid construction of 36 affordable housing units on Riverdale Street in Springfield. 2014 2015 2016 2017

1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person

Extremely Low Very Low Low

AMI Income Limits -MA FAIR MARKET RENTS

Fair Market Rents

$0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 $100,000 $500 $1,000 $1,500 $2,000 $2,500

1-person 2-person 3-person 4-person 5-person 6-person 7-person 8-person

$0

Extremely Low Very Low Low 2-Bed 1-Bed

Effeciency

3-Bed

4-Bed

Boston Providence Springfield Worcester

Fair Market Rents UNITS COMPLETED

1,200

$2,500

1,000

$2,000

800

$1,500 600

$1,000 400

200 Units Completed

$500

0

2012

2013

2014

2015

3-Bed 2016

2017

$0

Effeciency

1-Bed

2-Bed

4-Bed

Boston Providence Springfield Worcester Boston Providence Springfield/Worcester

*Expected

4