The Massachusetts Government Reacts to Climbing Rental Prices
As of November 2022, Boston became the second most expensive city for renters, behind only New York City. The price in Boston increased by 6% from the previous year (2022) to reach a median of $3,060 per month for a one-bedroom apartment. This increase made headlines as Boston finally surpassed San Francisco’s rent prices, which are currently at a median of $3,020 per month. Several factors contributed to Boston’s rental increase including seasonal price fluctuations due to the influx of college students in the fall, though the primary cause is simply a shortage of housing options. Massachusetts as a whole is consistently ranked in the top 10 states with the highest rent, making this political issue highly watched state-wide. Evidently, Boston’s Mayor Wu, Congress, and Governor Healey have turned their focus to addressing housing and rental questions in Massachusetts.
A major aspect of Mayor Wu’s 2021 campaign was introducing a rent control plan to Boston residents in hopes of making Boston more affordable. The goal of this plan is to limit the amount in which landlords can increase their rental costs per year. While she has yet to officially introduce a formal proposal, aspects of her plan have already been shared.
Mayor Wu’s plan centers around her proposal to limit rent increases in Boston to 10% a year, while also tying the allowed rent increases to inflation. This plan would allow landlords to raise rent by 6%, plus the consumer price index — the measure of inflation. However, the total increase could not surpass more than 10% in a year. Along with this limit, is also an exception for buildings opened in the last 15 years, as well as small, owner-occupied properties. And lastly, with the 10% increase limit, this plan would also include a “just cause” eviction ordinance. This ordinance means that tenants cannot be evicted for refusing to pay a rent increase.
However, there are major obstacles to this plan’s implementation, one of the most noteworthy challenges is that rent control was banned by Massachusetts residents in a 1994 referendum. Despite this challenge, Mayor Wu is still determined to bring rent control to Boston and sees this policy as a major piece of her administration's efforts to mitigate the current housing crisis. Governor Healey, who additionally campaigned with housing as a priority, filed executive order 605 on January 20th for the creation of a cabinet-level housing secretary. Housing was previously grouped with the economic development secretary. Healey’s executive order split this role into two separate groups, in order to have an increased focus on housing issues. Secretary Yvonne Hao occupied the joint role and will now focus solely on economic development. It is still unknown who will fill the post of Secretary of Housing in her Cabinet. The working group tasked with the creation of this new secretariat will be led by Lieutenant Governor Kim Driscoll.
The announcement of this executive order comes a day after the filing of HB51, An Act Financing the Immediate Economic Revitalization, Community Development, and Housing Needs of the Commonwealth, a bill that proposes nearly $1 billion dollars for a variety of economic development projects, a large chunk of which is aimed towards housing needs. This bill builds on Former Governor Baker’s efforts to increase funding in the previous legislative session. About half of the new bond bill, $400 million, would be dedicated to municipal infrastructure projects including funding for MassWorks, the Executive Office of Housing and Economic Development’s primary infrastructure program. $158 million would be used for housing efforts including redeveloping vacant properties, developing housing for individuals with mental illness or intellectual disabilities, and repairs to public housing units. The bill was filed in the House on January 20th, 2022 the same day the executive order was announced. It has since been referred to the temporary House Committee on Ways and Means.
Along with the previously mentioned plans established by Mayor Wu and Governor Healey, several bills of importance have been filed involving housing in Massachusetts. One of these notable dockets is HD3953, An Act Enabling Cities and Towns to Stabilize Rents and Protect Tenants, which allows towns to establish a limit on rent increases. Also of note is HD132, An Act Limiting Rent Increases and Creating a Rental Arbitrator. This bill establishes a rental arbitrator within the office of the Attorney General to review and assist in settling complaints from landlords and tenants. Also, it limits the amount a landlord can increase a tenant’s rent to no more than 5%, plus the most recent consumer price index for urban consumers. Any cause for rent increase as well must be explained in writing and can be appealed by a tenant to the rental arbitrator.
With many plans underway to combat the increased cost of rent in Boston, many are hopeful that these plans could lead to real change. The ultimate goal of addressing rental prices throughout the Commonwealth is to make Massachusetts a more accessible place to live for a wide range of people. While it is unclear if these plans can be implemented and bring the change that residents want them to, many are still hopeful that these ideas would lead to a brighter future ahead.
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