Massachusetts recently received an “F” rating in a Realtor.com report on affordability and home building. The culprit, according to Framingham officials: The raw cost of building homes.
According to the report, Massachusetts’ zoning code is complicated and its regulatory complexity costs builders time and money; those costs are then passed onto homeowners.
At the local level, Framingham Director of Planning and Community Development Sarkis Sarkisian said there’s a delay in building units because of building costs and the local energy code.
“It’s very expensive to build anything right now because of the cost of construction,” Sarkisian said. “I think the permitting too has improved, but it’s not the permitting, it’s just the cost to meet all these demands.”
Building costs can include lumber — the price of which has risen more than 20% in the past year. Other costs include those related to water and sewer infrastructure and permitting. Sarkisian said developers pay into that, and they must show there’s going to be a profit when the projects cost $40 million to 50 million.
Local energy codes are also a factor, Sarkisian said, leading to developers building triple-paned windows and ensuring buildings are well insulated and efficient.
Overall, 1,945 units have been approved in Framingham since 2013, according to a spreadsheet shared by Sarkisian. Approval timelines can vary from project to project. A 40-unit project on Union Street was approved in six months. However, other projects, including one on Howard Street, have taken years to complete.
According to Framingham Chief Operating Officer Michael Tusino, the Howard Street development was delayed due to engineering and Planning Board members not being comfortable with the number of units proposed.
In addition, Tusino said apartment buildings face delays because of financing.
“What I’m being told is it’s higher interest rates, which affects the cost,” he said. “That’s just another cost, you can add that into the cost of construction.”
What did the Realtor.com report say?
Massachusetts ranked 50th out of 51 on Realtor.com’s list (50 states plus Washington, D.C.) of Affordability and Homebuilding Report Cards. Massachusetts has a median home price of $781,758 with a median income of $96,584, according to the website.
The report also notes that zoning codes in Massachusetts are tough to navigate. According to the National Zoning Atlas, there are 16 zoning districts per jurisdiction and 131 pages of zoning code per jurisdiction, including 1,187 pages in Boston.
“Not only are these zoning codes onerous, but they are also highly fragmented, with a distinct zoning jurisdiction for every 20,000 residents on average,” the report reads. “These artificial restrictions limit the supply of housing in the state and will continue to result in Massachusetts struggling with affordable housing. When cities restrict apartments and starter homes, it’s not just policy — it’s also pushing out teachers, nurses and working families.”
Southern and midwestern states were among the highest achievers in the report.
Nevertheless, Sarkisian said Framingham is building at a far greater rate than its neighbors.
“Framingham is way ahead of everyone,” he said. “We’ve approved so many housing projects, over 500 units of housing we’ve approved. All of our housing, the big, multifamily housing projects, are at 95% capacity right now.”
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