Latest news with #multifamilyhousing
Yahoo
13-07-2025
- Business
- Yahoo
These towns are still out of compliance with housing law as deadline looms
As the final hours before the deadline for many towns to comply with the MBTA Communities Act tick down, some are still holding out against the state's requirements. While some small communities have until the end of the year, most of the 177 cities and towns included under the 2021 law have until Monday, July 14, to implement new zoning allowing multifamily housing. But as of Friday, 14 had yet to do so, with several explicitly avoiding following the guidelines. The MBTA Communities Act requires cities and towns served by the MBTA to have at least one zoning district where multifamily housing is allowed by right. Its goal is to make it easier for developers to create new housing, relieving pressure on the expensive local housing market. In a January ruling, the Supreme Judicial Court upheld the law as constitutional and mandatory. However, the court said the compliance guidelines had not gone through the correct legal process and were, therefore, unenforceable. Soon after, the state has released new, emergency guidelines, giving the 28 towns that had not met their original deadlines until July 14 to comply. They were required to submit an action plan to achieve compliance by Feb. 13, which three towns — Halifax, Marshfield and Middleton — still have not done. After the deadline, noncompliant communities will be ineligible for many state grants and could also see further enforcement action. Previously, Attorney General Andrea Campbell sued the town of Milton to force it to comply, though she has repeatedly said she does not want to use legal action to force compliance. Milton has since approved a new zoning plan meant to follow the guidelines, though according to the state's tracking page, the town had not officially submitted the plan as of Friday. Of the 27 other towns given the July deadline, Duxbury, Georgetown, Ipswich, Middleborough, Millbury, North Reading, Raynham, Rowley, Saugus and Wenham have all approved zoning meant to satisfy the law's requirements. In addition, Norton has been deemed fully compliant. Last month, lawsuits against the state brought by nine of the remaining towns were dismissed when a Plymouth Superior Court judge ruled that the law was not an 'unfunded mandate.' Under the Local Mandate Law, since 1980, any state law or regulation that would impose more than 'incidental administration expenses' on local governments must either be fully funded by the state or be conditional on local acceptance of the rule. In February, State Auditor Diana DiZoglio's office released an opinion that the MBTA Communities Act fell under this law. Though DiZoglio's ruling was nonbinding, it prompted the suits from Duxbury, Hanson, Holden, Marshfield, Middleton, Wenham, Weston and Wrentham, along with another by residents of Hamilton. 'The Superior Court confirmed what has long been clear: a state law requiring multi-family housing districts in communities served by public transportation, but leaving the details and location of those districts to the municipalities themselves, permissibly addresses our housing shortage while still preserving substantial local discretion,' Campbell said after the suits were dismissed. Since then, the Wrentham Select Board and town manager Michael King have indicated they intend to follow the law, though the town has not yet passed new zoning. 'Having pursued the case to a logical conclusion, the Select Board considered all various options, including appeal, and has determined that the most prudent and cost-effective option is to move forward while working proactively to manage future growth in a way that reflects the community's values and priorities,' King and the Select Board wrote in a post on the town website. 'This decision also ensures that Wrentham remains eligible for key state funding opportunities that support infrastructure, public safety, education and other services critical to residents' quality of life.' Weston is also working on zoning, with the Select Board writing in a letter to Secretary of Housing and Livable Communities on Wednesday that they were 'diligently working to achieve compliance' and intended to bring a proposal to town meeting in October. But still, other towns are holding out. Town meeting voters in Dracut, East Bridgewater, Freetown and Wilmington all turned down zoning proposals drafted to follow the law, while in Tewksbury, the town's Planning Board voted not to even bring a zoning proposal to a town meeting vote. In Winthrop, the Town Council failed to support the Planning Board's proposal with a split 4-4 vote on June 17. As recently as Tuesday, voters in Marblehead narrowly overturned the new zoning map that had already been approved in a town-wide referendum, with 52% voting against it, according to unofficial results. 'This is not the outcome we were hoping for today, but our work is not finished,' Marblehead Housing Coalition Chair Peirce Law told the Marblehead Current. 'Long-term noncompliance is not an option, and we fear for the repercussions that Marblehead may soon face.' Wrentham won't fight court ruling; will comply with MBTA Communities Act Judge throws out 'unfunded mandate' lawsuits over MBTA Communities Act Zoning changes under MBTA Communities Act spurs 3K new houses - so far Read the original article on MassLive.
Forbes
03-07-2025
- Business
- Forbes
Lower Property Taxes For Homeowners Can Mean Higher Rents
Lower property taxes for single-family homes and higher ones for apartments is a transfer of wealth ... More from poor renters to wealthy homeowners. Property taxes have a way of becoming complicated quickly, especially when it comes to apartment buildings. One of the arguments often made by people who own and operate multifamily housing is that property taxes form a big part of fixed costs. Rules and regulations that limit rent collection trap owners without a way to keep their buildings solvent. Worse, fixed doesn't mean they taxes are fixed at the same rate. Usually, property taxes go up and they can't be avoided. Rent is the only way to offset the costs of rising property taxes, and when rents go up, people get upset and a 'crisis' ensues. A review of a deep study of the effect of property taxes by the National Multifamily Housing Council (NMFHC) is a good place to start when trying to understand this dynamic. The review is titled, Unequal Burdens: Exploring Effective Property Tax Variation and the Regressive Nature of Apartment Property Taxes, and is a look at a deeper study of the topic by The Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence called, '50-State Property Tax Comparison Study: For Taxes Paid in 2023.' That report is complex and I haven't yet fully digested it. But the NMFHC overview is good as entry point to that work and a good review of how property taxes ultimately effect rents and thus the quality of life of people with less money. It's worth restating what I've said in writing and in presentations all over the country: rental housing is a marginal business. Money coming in must match the money being spent on operations. If that is not at least in balance, the business will fail and go bankrupt. Apartments are just like a restaurant, retail outlet, or a bowling alley. If the costs of maintaining the capital assets of the building and paying staff and other costs exceed income, there is no business. In spite of this obvious fact, many people in the general public and policy makers think of rental housing as different, passive income. Property owners simply collect the rent checks, deposit them, and go back to the beach. Or, as the NMHC post puts it, 'all else equal, higher effective apartment property taxes increase overhead costs for housing providers; this translates into providers being forced to raise rents to offset the cost, impacting the project's viability and/or affordability levels.' It's repetitive, but saying more than once and in different ways is for emphasis but especially to counter moves like banning eviction during the pandemic; that move meant many people who lost their jobs couldn't pay rent, but local jurisdictions didn't stop collecting property taxes. And often, those property taxes fall more heavily on apartment buildings. First, the way local governments tax property favors single-family homes. Often, single-family homeowners or those paying mortgages benefit from lower assessments and many exemptions like those for senior citizens or veterans. Those lower rates and exemptions end up being shifted to commercial properties and apartments. Another challenge is that taxes vary by jurisdiction, and the Lincoln study looks at all 50 states. There are some highly localized factors that impact taxation in different jurisdictions. Some states and local jurisdictions rely heavily on property taxes while others lean more on income or sales tax. Interestingly, jurisdictions with higher valuations – places with lots of properties that are assessed to be worth more money – can have lower tax rates. That is, when there is inflation in the housing market, property tax rates can effectively go down because the same money can be raised as a percentage of tax without raising rates. For example, a building with a value of $1 million dollars and a tax rate of 5% would generate $50,000 in revenue while a property with the same rate but a value of $100,000 would only generate $5,000. State and local governments can also boost taxes to cover deficits or more spending, and they can impose property classifications which hit commercial and apartment properties harder than single-family. This classification practices grinds against policy directives that those same governments might have on sustainable growth. Taxing single-family properties less encourages more inefficient land use and punishes dense housing with higher costs, costs that get passed on to renters. The Lincoln and Fiscal Excellence quantifies this vividly. Higher property taxes for apartments and lower taxes for single family mean higher rents subsidize ... More single-family equity. As the NMHC post describes, 'the extent to which apartment buildings subsidize homesteads can be captured by the ratio of the effective tax rate on apartments to that of homesteads. Doing so produces an average 'apartment-homestead classification ratio' of 1.44, meaning apartments pay an effective tax rate 44% higher on average than homesteads.' These ratios reflect deliberate policy decisions, pushing people to buy houses rather than rent even when they can't afford a mortgage. The irony of this is that while state and local politicians fret over a 'housing crisis' their property tax polices often speak louder than their speeches about housing, ultimately pushing up rents while favoring those with more money who can afford a mortgage. In the end, it is a transfer of wealth from the poorest Americans to the wealthiest. Whatever positive urges elected officials have toward reducing regulation must be coupled with, even alloyed with better property tax policy. The benefits of land use and zoning reforms given with one hand, can easily be taken away with the other in the form of excessive property taxes.
Yahoo
26-06-2025
- Business
- Yahoo
3 Residential REITs Set to Gain From Strong Sector Fundamentals
The Zacks REIT And Equity Trust - Residential industry constituents are poised to benefit from the strong rental demand, a resilient labor market and demographic trends driving household formation. Rising homeownership costs are making renting more attractive, especially in multifamily housing. Additionally, residential REITs are leveraging technology, like smart home features and AI tools, to enhance tenant experience, improve efficiency and support long-term growth. Industry players like Veris Residential, Inc. VRE, Elme Communities ELME and NexPoint Residential Trust, Inc. NXRT are well-positioned to economic uncertainty and tariff impacts could dampen consumer confidence, affecting household formation and renter affordability. Regional oversupply of apartments is also pressuring rents and limiting short-term growth prospects. About the Industry The Zacks REIT and Equity Trust - Residential category includes companies that own, develop and manage various residential properties such as apartment buildings, student housing, manufactured homes and single-family homes. These REITs generate revenues by renting spaces to tenants. While most residential REITs lease properties like apartments and single-family homes to a broad range of tenants, student housing is exclusively leased to students. As a result, student housing properties are typically located near colleges and universities to serve their target demographic. Moreover, the demand for student housing is closely tied to enrollment growth at educational institutions, making it a key driver for this market segment. Some residential REITs may focus on specific regions or types of housing to better address local market dynamics or serve particular tenant demographics. What's Shaping the REIT and Equity Trust - Residential Industry's Future? Solid Rental Demand: The U.S. residential real estate market continues to benefit from strong fundamentals, driven by high demand that supports both occupancy and rent growth. This momentum is expected to persist throughout the year. Contributing factors include a resilient labor market with low unemployment, along with demographic shifts that are accelerating household formation. Additionally, elevated mortgage rates and rising homeownership costs are making it harder for renters to transition into owning, positioning rental housing as a more accessible and flexible option. The relative unaffordability of single-family homes further strengthens the outlook for multifamily residential landlords. Technological Initiatives: Residential REITs have been embracing innovations such as self-guided tours, digital move-ins, smart home features and AI-powered tools to improve tenant experiences, boost efficiency and reduce costs. These tech-driven strategies position them to stay competitive, meet changing market expectations and support long-term growth in net operating income as the industry continues to evolve in the digital Headwinds: Broader economic headwinds are adding pressure to the residential real estate market. Macroeconomic uncertainty and the impact of tariffs create stress in the labor market, which affects consumer confidence and financial stability, both critical drivers of household formation. Although inflation remains somewhat contained, concerns persist about the ripple effects of tariffs on consumers and the housing sector. These dynamics may weigh on renter affordability and investor Supply of New Apartment Units: While the U.S. multifamily market shows strong overall performance, regional imbalances remain evident. Certain regions are dealing with excess supply, which is tempering rental rates despite solid demand. As a result, operators are prioritizing occupancy to maintain steady cash flow, a strategy expected to continue in the near term. Although new construction is decelerating, potentially paving the way for improved rent and occupancy trends, many markets still face short to mid-term oversupply challenges. These imbalances are likely to restrain rent growth until demand catches up, limiting the near-term upside but setting the stage for healthier fundamentals over the long run. Zacks Industry Rank Indicates Bright Prospects The REIT and Equity Trust - Residential industry is housed within the broader Finance sector. It carries a Zacks Industry Rank #92, which places it in the top 38% of around 250 Zacks industries. The group's Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates robust near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one. The industry's positioning in the top 50% of the Zacks-ranked industries is a result of the upward funds from operations (FFO) per share outlook for the constituent companies in aggregate. Looking at the aggregate FFO per share estimate revisions, it appears that analysts are gaining confidence in this group's growth potential. Before we present a few stocks that you may want to consider for your portfolio, let's take a look at the industry's recent stock market performance and valuation picture. Industry Underperforms Sector & S&P 500 The Zacks REIT and Equity Trust - Residential industry has underperformed the broader Zacks Finance sector and the S&P 500 composite over the past year. The industry has returned 0.5% during this period compared with the S&P 500's increase of 9.6%. The broader Finance sector has gained 19.5%. One-Year Price Performance Industry's Current Valuation On the basis of the forward 12-month price-to-FFO ratio, which is a commonly used multiple for valuing residential REITs, we see that the industry is currently trading at 16.46 compared with the S&P 500's forward 12-month price-to-earnings (P/E) of 21.89. However, the industry is trading above the Finance sector's forward 12-month P/E of 16.11. This is shown in the chart below. Forward 12-Month Price-to-FFO (P/FFO) Ratio Over the last five years, the industry has traded as high as 26.19 and as low as 13.61, with a median of 17.30. 3 Residential REITs to Buy Veris Residential: This REIT primarily owns, operates, acquires and develops premier Class A multifamily properties in supply-constrained, high-demand Northeast markets. With NOI and rental growth outperforming a number of peers, Veris is executing a strategy to unlock value through targeted asset sales, capital recycling and portfolio optimization. Its Jersey City assets benefit from favorable demographics and rising rents, while rebranding and renovation initiatives like Liberty Towers deliver strong ROI. Veris Residential currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for its 2025 and 2026 FFO per share has been revised upward over the past week to 62 cents and 72 cents, suggesting 3.3% and 16.1% year-over-year growth, respectively. With the company's shares declining 9.3% in the past three months, it provides a good entry point for investors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Elme Communities: This is a multifamily REIT with a portfolio of around 9,400 apartment homes concentrated in the Washington, DC, metro and the Atlanta metro regions. In addition to its residential assets, the company owns roughly 300,000 square feet of commercial space. Elme Communities offers an attractive investment opportunity through its focus on value-oriented multifamily assets in high-demand, supply-constrained markets like Washington, D.C., and Atlanta. With around 3,000 units in its renovation pipeline and a projected $2.4-$2.6 million net operating income upside in 2025, Elme is positioned for strong operational growth. Its fully unencumbered, investment-grade balance sheet, consistent rent-to-income affordability and price insulation from new supply add further resilience, making Elme a compelling play on stable, long-term multifamily housing Communities currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for the current-year FFO per share of 95 cents suggests a 1.1% year-over-year increase, backed by 2.8% growth in revenues. The company's shares have risen 4.4% so far in the year. NexPoint Residential Trust: This residential REIT targets middle-income, multifamily properties with value-add potential in major cities and suburban areas across the Southeastern and Southwestern U.S. It focuses on well-located assets where it can deploy capital to enhance units with modern, lifestyle-oriented amenities. NexPoint Residential Trust offers investors pure-play exposure to value-added, middle-income multifamily assets in high-growth Sunbelt markets. NXRT's renovation strategy consistently delivers high ROI and rent premiums, while its properties remain affordably priced relative to new supply. Its strong Sunbelt demographics, manageable new supply and rent growth upside make NXRT a compelling long-term multifamily housing currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its 2025 and 2026 FFO per share has been revised upward 1.6% and 3.7%, respectively, to $3.24 and $3.12. The company's shares have gained 1.1% in the past month and offer a good entry Anything related to earnings presented in this write-up represents funds from operations (FFO) — a widely used metric to gauge the performance of REITs. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NexPoint Residential Trust, Inc. (NXRT) : Free Stock Analysis Report Veris Residential, Inc. (VRE) : Free Stock Analysis Report Elme Communities (ELME) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
CBC
25-06-2025
- Automotive
- CBC
How these condo dwellers got EV charging in their buildings
One of the biggest perks of owning an EV is waking up to a fully charged car every morning and never having to go to a gas station — that is, if you have at-home charging. Before Lucian Oboroceanu got EV chargers installed in his Toronto condo building, keeping his car charged was a pain. "I had to go around the city to find [a] charger and it was very difficult," he recalled. In a recent survey of 16,000 Canadian EV drivers by CAA and PlugShare, 85 per cent of respondents in single-family homes had access to home charging, compared to 62 per cent of those in multi-family buildings. In that survey, only 20 per cent of EV owners lived in a multi-family building, even though about a third of Canadians live in this kind of housing. Oboroceanu soon learned he wasn't the only person in his 350-unit building who was concerned about the lack of charging — several neighbours brought it up at the board's general meeting. One was trying to sell his unit and kept getting questions about the availability of EV charging from prospective buyers. As board treasurer, Oboroceanu decided to address the problem. Two years later, EV chargers are installed in the personal parking spots of anyone in the building who wants one, including his own. Retrofitting condo buildings with EV chargers can pose a challenge, as Oboroceanu learned. CBC News spoke with him and several other condo owners who succeeded, and learned what they did to make it work. Why getting charging into older condos is hard Joanna Kyriazis, public affairs director for the think-tank Clean Energy Canada, said it typically costs about $1,500 to install a Level 2 charger in a single-family home, but it can be far more to retrofit a multi-family building. (It's much cheaper in a new building.) That's because installation can be complex and involve expensive drilling and long-distance wiring through multiple levels of parking. When Oboroceanu first looked into what it would take to get charging for 10 cars in his condo building, he was shocked to learn it would cost $50,000 — a no-go. Some buildings also have limited electrical capacity. Peter Luff of Kanata, Ont., a suburb of Ottawa, calculated that to have charging capacity for all eight condo units, his building could only install Level 1 charging rather than the faster Level 2 charging that can fill an empty battery overnight. The good news is that Level 1 is often fast enough for many drivers, including Luff. Kyriazis said electrical capacity is often not an issue, thanks to technology that can monitor and optimize charging, but people may not know about those solutions. One final issue: How will EV owners pay for charging and the electricity they use? "There's not a standard way of doing this yet," said Kyriazis. Systems that manage charging and payment often require network connectivity, which can also add to infrastructure costs. Do your research While all these can be challenging, Oboroceanu, Luff and Kyriazis have some advice for success. Surveying one's building, residents and government subsidies are good places to start. Luff contacted the local electrical utility and nearby buildings that already had charging to get information. So did Dave Wong of Vancouver, B.C., who lives in a 36-storey highrise with 132 units. He learned from neighbours about federal and provincial programs that when stacked together with a subsidy from B.C. Hydro could defer almost all costs. He also got the names of four local vendors and quotes for different possible configurations. Finally, he hand-delivered surveys to every unit in his building to find out how many people had EVs, and how many planned to buy one in the next five years. Educate neighbours and build allies Cara Clairman, president and CEO of Plug'n Drive, an EV advocacy group, said getting neighbours on board is important, as a condo board will need to approve EV charging first. Wong and Luff both provided information about EVs and EV uptake to their neighbours. For example, Wong noted in his survey that B.C. will require 100 per cent of new vehicle sales to be zero emissions by 2035, increasing the future demand for EV charging. They argued that potential buyers will want EV charging in their building — something Oroboceanu's neighbours were already finding in 2023. Wong also argued that it would be cheaper to retrofit the whole building at once, especially since subsidies were available at the time. WATCH | Road to EV adoption: Why experts think the future is still electric Road to EV adoption: Why experts think the future is still electric 9 months ago Duration 5:47 Recent headlines have suggested that consumers are losing interest in electric vehicles, but a closer look at the trends tells a different story. CBC's Nisha Patel breaks down where we're at in the EV transition and why experts say the future is still electric. Keep your building's needs in mind Through his survey, Wong learned there were only five EV owners in his building. (He didn't even have one himself.) So instead of installing a charger in every spot, the building just wired every spot to be EV-ready at a cost of $1,000 per unit (with subsidies), with the option to add a Level 2 charger for $3,500. To Wong's surprise, 20 people did that. Luff went with Level 1 charging. His board learned that Ontario would allow the project to be paid for from the condo's reserve fund "so there was no problem in coming up with the money." He also kept payments simple, buying $40 electricity meters for all the new outlets. Residents pay bills based on the reading each month. The one disadvantage, he said, is that the system is "totally reliant on you being honest." That likely wouldn't work for a large building like Oboroceanu's. His research on local vendors in Toronto eventually brought him to Smart EV Systems, which offered a package with no upfront cost to install an electrical panel serving up to 10 EV chargers. He rents his charger and pays for the electricity monthly. Kyriazis said hiring companies like that can be a good solution, as they take care of many of the complexities. But she said she has heard mixed reviews on the payment schemes, which can cost more in the long run. So far, though, Oboroceanu is pleased with the result — so pleased that he's recommending the service to some of the 150 buildings he manages through Newton-Trelawney Property Management. For those looking to get EV charging in their own buildings, Plug'n Drive and Clean Energy Canada are working on a new guide that they hope to release in the fall.
