Boston rents consistently rank between the third and fifth highest rents in the country — if you think that’s a financial burden imagine how difficult it is to buy a house in Massachusetts.
Massachusetts housing stock hasn’t kept up with the state’s burgeoning population in “decades,” Gov. Charlie Baker said in January, and that’s not taking into account the grim reality that much of the housing stock in the state isn’t considered “affordable.”
In fact, for one out of every 10 homeowners, and a quarter of renters, more than half of their income goes toward housing.
Hardest hit are the most vulnerable — seniors looking to downsize, renters and first-time homebuyers.
Gov. Baker announced a plan in December called Housing Choice Initiative, which involves working with developers, cities and towns and the business community to build 135,000 housing units over the next seven years to combat what is being called the statewide housing affordability crisis.
The state legislature has also passed legislation, a 1.7 billion housing bond which also extends tax credits and incentives to produce, modernize and preserve affordable housing.
First-time homebuyers can build wealth, if they can get there
Here at RE/DEV, we’re most concerned with homebuyers. They’re typically trying to climb onto the first rung of real estate investment by buying their home and it’s easy for them to feel disillusioned, financially insecure and worried as they try to navigate the fraught process of finding a house they can afford, in the state where they want to put down roots.
Our crowd funded real estate investment funds seek to purchase or develop primarily single-family or townhome subdivisions, or condominium conversions, and sell them to would-be homebuyers, so they can begin growing wealth, too.
Fortunately, Massachusetts also has a built-in helping hand in its Chapter 40B housing policy. Created in 1969, the Chapter 40B housing program allows developers to override local zoning bylaws in places where less than 10 percent of existing housing stock is considered “affordable.” Those proposed developments must include at least 20 percent of its housing to serve households at or below 80 percent of that community’s median income.
Help us help Massachusetts homebuyers
That’s what we do. RE/DEV investments go toward development in places where Chapter 40B applies, allowing us to boost housing stock where it’s needed most, and help give hopeful homebuyers the leg up many need.
They build wealth through homeownership; investors build wealth through our drive to secure at least a 25 percent IRR and an equity multiple of 2.5; and we build wealth over time, through the success of our unleveraged funds.
We invest our own funds, too, because the affordable housing crisis is close to our hearts.
Questions? Speak with one of our experts today.