HOUSING
The high cost and scarce supply of available housing is a statewide issue with many ramifications, particularly for economic competitiveness.  While the Arc of Innovation has a high quality of life, has experienced significant residential growth, and offers a range of housing options, this is still a major regional constraint.

The severity of the housing issue is revealed by data from the U.S. Census, which shows that housing prices in the Boston metropolitan area grew between 179 and 210 percent between 1980 and 2004.  With these rapid housing price increases, Greater Boston now has some of the highest housing costs in the country, as well as some of the lowest homeownership rates.

This situation, and the resulting inaffordability of housing, can serve to stifle economic growth.  Most importantly, high housing costs contribute to the outmigration of workers, which is exacerbating existing labor shortages.  Massachusetts employers are finding it increasingly difficult to attract and retain workers, and cite housing costs as a primary reason.  Housing costs have become so high that many individuals and families are choosing to not only leave the region but to leave the state in pursuit of other opportunities.  This is particularly true of young people between the ages of 20 and 35, the very segment of the population that the region needs to attract in order to remain competitive.  Those that do choose to stay in the region must search further and further for affordable housing, thereby increasing commuting time and congestion on roads, while making employers’ search for skilled workers even more difficult.  

In the Arc of Innovation, the constraint of housing is an issue that affects both public and private sector employers and unifies their interests.  The high cost and limited supply of housing are being felt keenly by all employers that are struggling to attract and retain employees while paying competitive wages.

The need to offer a unified response to the housing situation is felt not only on the statewide level, but also within the Arc of Innovation.  Within the region, the housing issue has bonded both private and public employers with their concerns on the potential long term ramifications for the economy if action is not taken.  

These actions, however, must be both thoughtful and comprehensive, so that the perspectives of all involved parties are taken into account.  The real solution will involve responses from state agencies, municipal governments, developers, advocates, and residents, in order to build more housing across a range of pricing and types, in appropriate locations while mitigating any ramifications.  While a complicated solution, this is one that is absolutely necessary in addressing a constraint we cannot afford to ignore.