Small landlords, especially owner occupants in older houses, control a large share of the affordable market-rate units we still have in Greater Boston. But many are still struggling due to the effects of the pandemic, and in some areas, like East Boston, they're being targeted heavily by prospective buyers.

In pandemic’s aftermath, small landlords are still feeling the pressure https://www.bostonglobe.com/2022/12/25/business/pandemics-aftermath-small-landlords-are-still-feeling-pressure/

#rentalhousing #affordablehousing #greaterboston @wutrain

In pandemic’s aftermath, small landlords are still feeling the pressure

Struggling tenants and surging inflation are squeezing mom-and-pop landlords in Greater Boston, and there’s growing concern they’ll sell their buildings.

The Boston Globe
@marionsd @wutrain feel like we had this convo many months ago on the old bird site. But do we think this situation—owner occupants of 2 families renting out non-updated units at below market rents—is really a part of the housing picture we should try to preserve long term? I don’t see it. Just think we’re better off building them bigger and preserving affordable unit counts greater than what will be lost as these old buildings get sold.
@klaus As someone who lived in an owner-occupied house for 10+ years, paying well below the rents at Maxwell's Green and other new buildings nearby, my answer is YES, absolutely! Also has long made owning more viable for the non-rich, including many people of color, like the couple featured in the story. Owner-occupied triple-deckers are a very good New England tradition. Nonprofit-owned houses with deed restrictions as @wutrain is helping fund are great too, but we need both, AND new buildings.
@marionsd I love triple deckers. But I think the time has long passed where buying a building in Boston, Cambridge, or here and renting out units is a viable path for the non rich, no matter how much we constrain the size of the buildings. Here it seems we count on long time owners who have paid off their homes to rent non updated units at below market to create “affordable” units. And it’s nice this happens, but they always eventually sell and then it’s a crisis for the tenants.
@klaus So is the best outcome for every triple-decker to ultimately be condofied, bought by a corporation or a nonprofit, or else demolished to be replaced by a commercial apartment building or condos? I don't like that at all. I believe these small landlords are important for affordability, for neighborhood stability and for community. I don't think there's a single solution, but I want policy-makers to try, not accept this as just the way it is.

@marionsd As @klaus says, these small landlords only provide stability for as long as they’re here. Once they sell, it’s a crisis for their tenants b/c the new owners will move to recoup their costs & may need to renovate, which requires empty units.

Agree that there's no single solution.

Let’s remember that 3 deckers are energy inefficient, inaccessible to the disabled, and are all ~100 years old.

At some point, each & every one needs to be replaced, purely b/c nothing lasts forever.

@jeffbyrnes @klaus Why are they energy inefficient? They can be insulated like anything else. I live in one and routinely use less than 200 kWh per month. And you're arguing that because some day, everyone, including presumably my old landlord, @ef4, @StephanieLearns and a large share of current Somerville residents, will fail and be forced to sell to a corporate, we should just give up on them right now? I see a lot of babies going down the drain here.

@marionsd @klaus @ef4 @StephanieLearns most of them are still uninsulated. They can be retrofitted, but let’s remember that’s a form of upcycling (I.e., making those homes more expensive) and thus can encourage displacement b/c those costs need to recouped by the owner.

Keeping the buildings the same, but making them nicer, tends to displace in favor of higher-income households.

@jeffbyrnes @klaus @ef4 @StephanieLearns Isn't that why we have Mass Save, with good deals for property owners at all sizes? https://www.masssave.com/residential/rebates-and-incentives#weatherization

@marionsd @klaus @ef4 @StephanieLearns a new owner may not know about MassSaves (and maybe commercial owners aren’t eligible?)

Even w/ MassSaves though, you’re still talking about having to empty an apartment to do major renovations, which means somebody is gonna lose their home & be displaced to do those upgrades.

We still need more homes to accommodate folks.

Whatever we do, they’re not all going to disappear at once! We’ve many more years of having 3 deckers around.

@jeffbyrnes @klaus @ef4 @StephanieLearns But I never argued against building more housing. I was just saying I think it's important to protect this part of our housing stock, which I consider to be super valuable. Sometimes it makes sense to demolish a bunch of old houses and replace them with new apartment buildings. That doesn't mean triple-deckers aren't a pretty good use of land, and nice to live in. Good housing policies can support a diverse mix.

@marionsd @klaus @ef4 @StephanieLearns to be clear: I’m not saying you did! And definitely, 3 deckers are better than 1 or 2 unit houses in terms of land use.

It starts getting interesting when we think about how Somerville might need to grow to be a home to 2 or 3 times as many people as it is today.

Far future for sure (though maybe not that far!)

@jeffbyrnes @klaus @ef4 @StephanieLearns I'm not sure I'm a fan of a 160,000-240,000-resident future for #SomervilleMA, but replacing triple-deckers on side streets wouldn't be No. 1, 2, or probably even 3 on my list of ways to densify. Sites like Assembly and along 28 are better suited for true high-rises (and we could do more mixed-use and not quite as much lab space!), and main and mid-size streets (e.g. Medford St) could be lined with 3-5 story apartment buildings with ground-floor retail.

@jeffbyrnes @klaus @ef4 @StephanieLearns For perspective, we're at almost 20,000 residents per square mile, among the top 20 most densely populated cities in the U.S. (Boston is ~50th). Doubling our density would put us up with Shanghai, and tripling would make us like Kolkata: https://www.usatoday.com/story/news/world/2019/07/11/the-50-most-densely-populated-cities-in-the-world/39664259/.

I want plentiful affordable housing with efficient use of land so we still have lots of green space and amenities, and room for growth (maybe up to 50%?), but not *quite* 2x or 3x.

75,000 people per square mile? These are the most densely populated cities in the world

American rush hour suddenly doesn't seem so bad.

USA TODAY

@marionsd @klaus @ef4 @StephanieLearns Paris is 55k per sq mi. That tends to be my personal “density done well” guidepost.

Kolkata is 62k / sq mi, interesting it’s similar to Paris!

@jeffbyrnes @klaus @ef4 @StephanieLearns Looking at this again, I think it's doing greater metro areas, because Paris doesn't even make their list. But I also think it's okay for secondary cities like ours to have lower-rise buildings on average. Pack downtown Boston and our post-industrial areas with high-rises (and parks) and let neighborhoods be neighborhoods, densified but not made indistinguishable from major urban cores.
@marionsd @jeffbyrnes @klaus @ef4 @StephanieLearns I mean, people want to live in Somerville (and JP, and Cambridge). We can either build the housing for them or let prices explode while they displace the people already living here.
As for the old triple deckers the issue is that even the ones that are livable today are eventually going to have to be updated and renovated, and no one is going to be able to afford to do that at the current low rents.
@marionsd @jeffbyrnes @klaus @ef4 @StephanieLearns energy efficiency is only one type of obsolescence (and MassSave is okay but it won’t get you anywhere close to the levels of efficiency that you can do with new construction). The other is layout. Household sizes have shrunk considerably since the early 1900s. We have far too many 2-3 bedroom apartments (occupied by non-families) and not nearly enough studios and 1-bedrooms. You can’t really fix that without rebuilding.
@eherot @jeffbyrnes @klaus @ef4 I agree we need more buildings with studios and 1BRs. None of these are absolutes, though. Lots of older houses are smaller than what's built today; my house in Providence, from 1928, was a 3BR with 1200sf of space over 2 floors. My condo now, in a 1915 house, is 2BR, just over 950sf. A lot of new stuff I see has maybe just 1-2BR, but also an office, a den or other spaces. And 99% of new builds are gas-heated.
@marionsd @eherot @jeffbyrnes @ef4 haven’t we banned gas in new buildings yet ?
@klaus @marionsd @eherot @jeffbyrnes @ef4 I heard that Somerville didn't make the cut for the first 10 communities to ban natural gas. So still prohibited by state law
@noisecapella @marionsd @eherot @jeffbyrnes @ef4 we could probably use zoning to accomplish this? More density IF….

@klaus @noisecapella @marionsd @eherot @ef4 zoning is what restricts per-building density, so yep, we can change or get rid of that & see what happens!

Marion, our place is palatial (2500 sq ft) and we really do enjoy it, and there’s nothing wrong with that, so you’re plenty noble 😆 but it’d probably be smaller if >2 homes were allowed on our 7500 sq ft parcel 🤦🏻‍♂️

@jeffbyrnes @klaus @noisecapella @eherot @ef4 All of which brings me back to... don't be so quick to write off old triple-deckers! Unless units-per-parcel-size limits are completely eliminated, and other rules too (like setbacks), and I'm not sure any public officials are willing to go to zero limits, even significant liberalization won't give you the amazing density that older generations produced in much of Somerville.
@jeffbyrnes @klaus @noisecapella @eherot @ef4 We don't need to tear these down for efficiency; let them be, and keep them from being turned into 2-unit luxury condos (a relatively new norm: my renovated 3-unit is now oddly down-market). AND we need to expand and diversify options, using currently underutilized land. Market-but-low-frills 1BRs and studios, and*also* affordable 3BRs. Maybe also some innovative dorm-like but more private housing like they proposed in Davis, and not just for kids.

@marionsd @klaus @noisecapella @eherot @ef4 our new zoning making 3-unit buildings effectively impossible is the biggest driver of this shift. It’s why my building isn’t 3+ units, and the demo & new build on the Community Path is 2 huge semi-detached townhouses.

Fully agree with you on this Marion!

@marionsd @klaus @noisecapella @eherot @ef4 the builder of our home is gonna do a tear down (the existing house needs to go, it’s in bad shape) & new build of two 2-unit houses on our street, again driven by zoning requiring that 3rd unit be subsidized affordable (which doesn’t work finance-wise). Would be nice if he could go a little bigger to actually afford a subsidized unit or two!
@jeffbyrnes @klaus @noisecapella @eherot @ef4 Doesn't work finance-wise or isn't lucrative enough for their taste? Because what you're saying is developers have found an awesome workaround to evade our affordable housing mandates.
@marionsd @jeffbyrnes @klaus @noisecapella @ef4 Housing development is a business just like growing food or building fire trucks. If we want developers to do certain things, we have to make it profitable for them to do those things. If we make it more profitable to consolidate 3-deckers into duplexes, we shouldn’t be surprised when that happens. We can talk until we’re blue in the face about what they “should” be able to do, but if we want results the incentives need to support them.
@eherot @jeffbyrnes @klaus @noisecapella @ef4 Making housing affordable will never be the most profitable option. This is where market-driven YIMBY breaks down for me. If you build tons of housing, enough to finally create a glut, that *will* eventually reduce prices, but a) there's so much demand from rich people, it'll take a lot to create a glut, and b) if you're the dummy who builds the building you can't fill at full price, you failed. Without IZ and nonprofits, the market won't deliver.
@marionsd @jeffbyrnes @klaus @noisecapella @ef4 And besides, by not accommodating those rich people, they aren’t going away—They’re just displacing the poorer people who live here today, so really we have no choice but to build that housing (or watch all of our neighbors get forced out).

@eherot @marionsd @klaus @noisecapella @ef4 and to be sure, nobody in this thread thinks the market is perfect or the end-all-be-all. We still need subsidized homes, and tenants’ rights, and lots of other things to try & help folks out & avoid poor outcomes in the micro sense. But at the macro scale, more homes is essential.

A 1–2% vacancy rate for rentals is a terrible place to be, and we’re there 😔 We’ve got folks bidding up rentals & competing with each other! 😭

@jeffbyrnes @marionsd @klaus @noisecapella @ef4 To be clear, subsidies and tenant protections are extremely important, but both of these things are far more effective if there is a surplus of houses to begin with. If you’ve got nowhere else to go, you’re probably a lot less likely to report your landlord for breaking the law or providing substandard housing.
@eherot @marionsd @klaus @noisecapella @ef4 Yep! As we know, fixing things needs a “yes, and” set of approaches.