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Home Prices Breaking Records in Massachusetts

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After three consecutive months of double-digit declines, a real estate market report released last week shows home sales are now booming in Massachusetts with condo and single-family homes commanding record selling prices. 

Boston.com, pointing to the fact that there has been a near 10 percent decrease in home sales compared to the first seven months of 2019, called the development, “one of the few bright spots in the economy amid the COVID-19 pandemic.”

Here are some statistics brought to light in the report:

  • The state saw a 5.3 percent increase in single-family home sales in July

  • The median sales price for single-family homes ($460,000) was a record high for the month of July.

  • Prices are seeing an 8.2 percent year-over-year increase.

  • The month-to-month condo sale prices jumped 10.3 percent to $430,000 compared with July 2019.

  • Year-to-date, there have been 11,933 condo sales — a 13.7 percent decrease from the first seven months of 2019.

  • In Greater Boston, sales of single-family homes and condos were up 31.3 percent and 39.4 percent from June.

  • The median sales price for single-family homes in Boston hit a record $700,000 in July, a 6.9 percent increase. For condos, it was $592,750, a 2.2 percent increase.

  • Although the number of single-family homes on the market in July reflected a 27.2 percent year-over-year decrease and a 3.3 percent drop since June, the condo market saw an 18.3 percent increase in active listings year over year and a 9.2 percent rise since June 2019.

The statistics were gathered by analytics firm Warren Group. Boston.com has an extensive report listing statistics for 64 Mass. communities. That report can be found here.

Mass. Reaches 1% Coronavirus Testing Rate, a New Low 

Public health officials in Massachusetts are reporting that the state has reached a new low for coronavirus tests with a rate of just 1 in 100 testing positive. 

Not to get too optimistic, health officials also released an updated version of the state's new community-level risk assessment map.

These are the “high-risk communities” listed in the report:

  • Brockton

  • Chelsea

  • Everett

  • Framingham

  • Lawrence

  • Lynn

  • Revere

  • Sutton 

  • Winthrop

New Study Confirms Staggering Racial Disparities in COVID-19 Cases in Massachusetts 

Meanwhile, a new study shows a staggering disparity in COVID-19 cases in the state with black and Latino communities taking the brunt of the epidemic.

The problem is not just confined to Mass. cities and towns. The Centers for Disease Control and Prevention reported last week that:

“COVID-19 infection rates are 2.8 times higher in the Hispanic or Latino and American Indian or Alaska Native populations, when compared to the rate for non-Hisanpic [sic] white people. For Black people, the case rate is 2.6 times higher and the death rate is 2.1 times higher. Case and death rates for white and Asian Americans are similar.”

The Boston Globe has more on this story.

Unemployed Look Forward to $300 Weekly Boost 

State officials have announced that unemployed residents in Massachusetts will be getting a temporary boost of $300 per week for three weeks. That is according to a report at Boston.com. 

The raise is the result of a Gov. Baker’s application to the Federal Emergency Management Agency. FEMA has been tasked with distributing up to $44 billion to states.

At the time the monies were made available (via executive order), Gov. Baker criticized the federal government for not doing more to help states. “But if this program is there and it turns out to be the only thing that’s there,” said Baker, “I don’t think Massachusetts should pass on that.” 

McBride Stepping Down from Cannabis Commission 

Massachusetts Cannabis Control Commission Public Safety Chair Britte McBride has announced she will be vacating her seat.

In an interview with MassLive McBride had this to say:

“I took this appointment to contribute to the establishment of a sound regulatory structure for the state and I’m really proud of the work that we’ve done, but after a lot of thought, it just feels like it’s the right time for me to step back and to assess what my next step is going to be. You kind of step back occasionally and assess where you are and for me, it’s that moment in time… I’m really passionate about public policy, I love being a problem solver and I get a lot of joy out of the challenge of building things, which is why this job really spoke to me and why this appointment, I think, really fit with who I am professionally. It was something novel and challenging and there were certainly a lot of problems that needed to be solved and a lot of issues that needed to be addressed, so I don’t know what the next thing is going to be but I’m hoping I’ll land on something that combines those elements.”

The exact date for McBride’s departure is not yet clear and no new plans have been announced other than that she plans to explore her options. However, she says, she is committed to staying on until the current regulatory process is complete which could be as early as October. 

Read more at MassLive.com.

Forbes Lists “Best Employers In Massachusetts” 

Forbes Magazine has released a list of what they see as the best employers in Massachusetts (with at least 500 employees). Leading the list are health care companies with Boston Children's Hospital at the top. 

Following Boston Children's Hospital are Lawrence General Hospital, and Partners HealthCare System. 

Forbes worked with Statista to determine the rankings. Statista surveyed 50,000 Americans to determine job satisfaction rates across the country.

Here are the Top 10 employers in Mass. according to Forbes:

  1. Boston Children's Hospital

  2. Lawrence General Hospital

  3. Partners HealthCare System

  4. Raytheon Technologies

  5. Massachusetts Institute of Technology

  6. Cambridge Health Alliance

  7. Procter & Gamble

  8. United States Department of Defense

  9. Boston College

  10. Herb Chambers

The full list can be found here.

More of the Latest Massachusetts News

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High Unemployment Rates Sticking Around

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Heading into September, the outlook for recovery from pandemic safety measures continues to improve in Massachusetts. In particular, three key metrics from the Dept. of Public Health illustrate this fact:

  • The seven-day average of the positive test rate is at an all-time low of 1.4 percent. 

  • The three-day average of hospitalizations is 371, only 3 percent above the 359 low. 

  • The three-day average number of deaths attributed to the pandemic stands at 13.

However, there are still some clouds distinctly lacking in silver linings. 

For example, Massachusetts still has the highest unemployment rate in the country. And chipping away at the numbers has proven to be a challenge. 

  • 16,709 residents filed unemployment claims last week, up from about 13,000 last week.

  • 12,282 residents applied for Pandemic Unemployment Assistance benefits — a massive rise from 8,750 last week.

That being said, fiscally speaking, it turns out that the city of Boston is better off than most U.S. cities. A recent study estimated revenue shortfalls for 150 major U.S. cities. And authors of the study claim that Boston will experience the least severe drop in revenue.

According to a report by The New York Times, Boston is looking at a meager 2 to 4 percent decline for the fiscal year 2021. 

MBTA Facing potential $400 Million Budget Shortfall

Although an influx of federal funds is helping to stabilize public transportation, a massive reduction in the number of MBTA riders could result in a $400 million shortfall for the agency. That is according to an analysis by the Massachusetts Taxpayers Foundation. And that number assumes that fare revenue rebounds by 75 percent in the next year — which is highly speculative. 

Although some bus routes have seen a greater than 50 percent increase in ridership since springtime lows, most are still floundering around at a miserable 20 percent of previous ridership. Commuter rail trains are faring even worse.

The MBTA’s day-to-day budget is currently about $2.3 billion. And that figure is expected to grow slightly in the coming year. However, with the estimated drop in ridership, revenue is expected to barely top $2 billion.

The Boston Globe has a detailed report on this topic.

Rising Sea Levels Threaten $100 Billion In Essex County Real Estate

As if a global pandemic is not enough to make our collective heads spin, climate change and rising sea levels threaten to decimate some Mass. coastal communities. Massive flooding and beach erosion could conceivably wipe out more than $100 billion in real estate in Essex County alone. That is according to a recent report by a leading conservation group titled “State of the Coast” 

Of great concern are the county’s 50-plus miles of aging sea barriers. It’s estimated that upgrades to sea walls could run up a $88 million repair bill. 

The report also also warns that by 2030 more than 600 North Shore buildings could experience daily tidal flooding. And upwards of 7,000 waterfront buildings could see flooding should there be a 100-year-storm event. And with storms becoming more powerful due to climate change that possibility is certainly not out of the question. 

The ominous projections are based on a flood risk model developed by Bourne-based environmental consultancy firm, the Woods Hole Group.

To give some sense of the magnitude of the problem, according to its trustees, Crane Beach in Ipswich has lost the equivalent of 84 football fields of sand since the 1950s. And it’s estimated that coastal homes in Salisbury could be worth $200,000 to $300,000 more if not for more frequent tidal flooding.

The report covers 13 North Shore communities: Swampscott, Marblehead, Salem, Beverly, Manchester-by-the-Sea, Rockport, Gloucester, Essex, Ipswich, Newbury, Rowley, Newburyport, and Salisbury.

Boston.com has more on this story.

Offshore Wind Firms To Pay $33m To Lease New Bedford Terminal

The New Bedford Marine Commerce Terminal is set to become the primary staging and deployment base for the construction and installation of offshore wind projects being developed by Vineyard Wind and Mayflower Wind. 

According to South Coast Today, the lease agreements “commit the facility to full-time offshore wind work from 2023 into 2027 and are worth more than $32.5 million.”

Governor Charlie Baker had this to say about the development:

“These lease agreements with Vineyard Wind and Mayflower Wind are another major milestone for offshore wind in Massachusetts. With this announcement, the Commonwealth continues its national leadership on clean energy and ensures Massachusetts workers will benefit from the jobs and economic opportunities provided by this new industry.”

South Coast Today describes the terminal this way:

“The first port in North America specifically purpose-built to support the staging and installation of offshore wind components, the terminal has been engineered to sustain mobile crane and storage loads that rival the highest capacity ports in the world.”

According to Vineyard Wind CEO Lars T. Pedersen:

“Once construction begins, the Marine Commerce Terminal will become the birthplace of an entirely new industry, with jobs and opportunities for local residents that simply don’t exist today. We’re fortunate to have such great partners both locally in the City and Port of New Bedford and in the Baker-Polito Administration. We look forward to being a growing part of the community.”

And Michael Brown, President and CEO, Mayflower Wind says:

“Mayflower Wind would like to thank the commonwealth and City of New Bedford for their leadership and vision in establishing the New Bedford Marine Commerce Terminal. We look forward to creating thousands of good-paying jobs during the construction and installation of our project, anchored around this critical infrastructure investment.”

As we’ve been reporting over the past few months, in order to combat climate change, Massachusetts has set an ambitious net zero emissions target. Offshore wind is expected to play a key role in achieving that goal while creating an estimated 2,000 to 3,000 jobs over next 10 years. 

The new wind plants are expected to provide up to 1,600 megawatts of wind power to Massachusetts. 

More of the Latest Massachusetts News

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Wheels of Government Keep Turning

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Feds Pledge $25.8 Million to Mass. Public Housing Authorities “To Help Keep Residents Housed”

Funds appropriated via the CARES Act are being awarded to public housing authorities across the U.S. Of the more than $470 million being distributed, Mass. residents can expect to see more than $25 million. 

The funds are intended to help low-income families remain in their homes and thereby stem losses for property owners resulting from overdue rent and possible evictions. 

According to the report in Boston Real Estate Times, eligible coronavirus-related activities include, but are not limited to, the following:

  • Procuring cleaning supplies and/or services to maintain safe and sanitary HCV units, including common areas of PHA-owned Project-Based Voucher (PBV) projects.

  • Relocation of participating families to health units or other designated units for testing, hospitalization, or quarantine, or transportation to these locations to limit the exposure that could be caused by using mass transportation.

  • Additional costs to supportive services vendors incurred due to coronavirus.

  • Costs to retain or increase owner participation in the HCV Program, such as incentive or retention costs (e.g. the PHA offers owner an incentive payment to participate in recognition of added difficulties of making units available for HCV families to rent while stay-at-home orders or social distancing practices are in effect).

  • Costs for providing childcare for the children of PHA staff that would not have otherwise been incurred (e.g. children are at home due to school closings, PHA staff are working outside of regular work schedules, etc).

The funds will be distributed via Housing Choice Vouchers (HCV) and Mainstream vouchers.

Amazon In Discussions with Simon Malls To Transform Vacant Shops Into Distribution Centers 

Amazon is in talks with Simon Property Group to potentially take over vacated department stores and turn them into Amazon distribution hubs. Should the deal come to pass, “it could have a big impact on Massachusett’s commercial real estate,” according to a report at Mass Live.

Talks have, for the most part, centered on Sears or JCPenney locations at five of the 14 Simon Mall locations across Mass. including North Attleboro, Peabody, Marlborough, Braintree, and Saugus.

Amazon is on track to become “the largest non-institutional occupier of real estate in the region,” according to real estate research. Recently, a 3.6 million-square-foot Amazon distribution center was approved for North Andover and a 100,000-square-foot delivery station is planned for South Boston.

The Wall Street Journal broke this story.

Recent Cannabis News

There’s a lot of activity going on related to the Mass. cannabis industry this month.

For starters, High Times reports that Massachusetts brought In more than $150 million in cannabis taxes. That is according to the Commonwealth Dispensary Association and the Mass. Cannabis Control Commission. 

Mass. dispensaries have sold more than $785 million in cannabis products and accessories since opening in November 2018. More than $30 million of that, or around 20 percent, has come in since Memorial Day when recreational shops reopened. 

Mass. Cannabis Workers Vote to Unionize 

According to a report by Ganjapreneur, workers at at least three Massachusetts cannabis companies including Cultivate Holdings in Leicester, Massachusetts have voted to join the United Food and Commercial Workers Union Local 1445. 

Back in 2019, more than 100 workers at Sira Naturals in Milford, Needham, and Somerville voted to join UFCW Local 1445. Employees at Mayflower Medicinals in Holliston, Massachusetts voted in July to join Local 1445 as did employees at New England Treatment Access’ Franklin cultivation facility. 

One of the largest U.S. private-sector union, UFCW represents 1.3 million workers in retail and food processing industries. 

CCC Revisiting Delivery, Caregiver Limits, Vape Warnings

Although the Massachusetts Cannabis Control Commission made applications for recreational marijuana delivery licenses available in May the regulatory agency has yet to issue a license. Currently only medical marijuana delivery is permitted in the state. 

The CCC’s draft of delivery regulations attracted significant public comment and there is “some concern that the delivery will not work as currently written,” says WNYT News 13. 

Currently, delivery licenses are only available exclusively to participants in the CCC's Social Equity Program and certified economic empowerment applicants. That window will stay open for at least two years. 

Also included in the CCC’s latest draft of regulations:

  • Caregivers would be permitted to service up to 10 patients each.

  • Retailers must disclose that vape products could be hazardous to health.

  • Delivery licensees would be permitted to have an interest in another license type (and vice versa).

A vote on final regulations is planned for on Sept. 24. The CCC stopped accepting comments on the draft regulations on Aug. 14. 

On a side note, the Mass. CCC is also being petitioned to allow medical marijuana patient certifications to take place via a telehealth appointment rather than in person. 

Vertical Integration Rules Reconsidered

Although the CCC has given signs that it is not enthusiastic about eliminating vertical integration requirements for medical cannabis suppliers, the agency is soliciting public opinion on the topic. 

Currently, unlike the recreational marijuana market, medical marijuana dispensaries are required to grow, manufacture, and sell their own products.

Advocates of eliminating the vertical integration requirement claim that the rule adds cost to the final product putting the treatment out of reach for some patients. It also reduces product options and makes it difficult to open new dispensaries. 

According to current state law, no individual can hold more than three marijuana licenses of a particular type. Should the vertical integration requirement be eliminated, some operations would instantly hit that cap. Workarounds are being discussed.

Massachusetts is currently the only state to require vertical integration. Colorado and Florida have eliminated the requirement.

Commonwealth Magazine has more on this story.

More of the Latest Massachusetts News

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Unemployment and Housing Concerns Dominate Massachusetts News

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Unemployment figures continue to be the measure of progress in fighting economic damage caused by the coronavirus pandemic in Massachusetts. According to a report by CBS News, the number of new unemployment and Pandemic Unemployment Assistance claims fell once again last week in Massachusetts. 

The state reported just over 15,200 new claims, or about 4,400 fewer than the previous week. Further, the number of independent contractors and “gig economy” workers seeking Pandemic Unemployment Assistance dropped by 5,000 to just under 10,000.] Learn more about applying for unemployment benefits in Massachusetts here.

Census Bureau Report Suggests One In Five Mass Renters Fear Eviction 

Although the state continues to inch in a positive direction nearly a half-year into the coronavirus pandemic, many challenges still remain. For example, a recent report by the U.S. Census Bureau suggests that more than 315,000 Mass. renters fear they are on the verge of eviction — or about one in five renters. The Census Bureau’s Household Pulse survey estimates state-by-state impacts from the pandemic on a weekly basis.

According to the data, as of mid-July, little more than half of the renters in the state are fully confident that they would be able to pay their rent in August. A rash of evictions would ultimately have a ripple effect on the state’s economy as landlords struggle to pay mortgages and banks foreclose on properties.

Recent executive action by Gov. Baker has initiated a moratorium on evictions and foreclosures until Oct. 17. Although the moratorium does not exempt renters or property owners from paying rent or mortgages, it does prevent removal for failure to pay if COVID-19 created a financial hardship.

Here are some statistics gleaned from the Census Bureau report:

  • Nearly one in five renters in the state have no confidence or only slight confidence they could pay August rent. 

  • 368,000 are moderately confident they can cover their rent.

  • 751,000 have high confidence they can pay rent.

  • 78 percent of eviction filings in Boston occur in Census tracts where a majority of the population is nonwhite.

  • White tenants were about 2.8 times as likely to have high confidence as black tenants and about 1.7 times as likely as Hispanic or Latino renters.

  • About 42 percent of Black renters and 30 percent of Hispanic or Latino renters have no or only slight confidence in covering housing costs for another month, or more than 30 percent higher than white renters.

You can read more on this story in this report by CBS Boston.

Mass. Clean Peak Energy Standard Promotes the Use of Clean Energy During High Demand Periods

A new clean energy program — the first of its kind in the nation — is aimed at giving a leg up to clean energy sources by promoting the use of clean and renewable energy sources during times when demand is the highest. 

Gov. Baker says the Clean Peak Energy Standard (CPS) will also reduce greenhouse gas emissions, lower electricity costs, and generate revenue for resources such as energy storage systems needed to provide electricity when demand is typically highest.

Under the program, utilities that generate energy during specified times of the day will generate Clean Peak Energy Certificates (CPEC). Then electricity suppliers will be required to purchase a minimum amount of CPECs each year based on a percentage of electricity sold. 

The governor had this to say during his announcement:

“To combat climate change, we need to change the way we consume our energy, the resources we use, and when we use them. This first-in-the-nation program is an innovative approach to create a cleaner and more affordable energy future for residents and businesses across the Commonwealth, while serving as a national role model for making meaningful reductions in greenhouse gas emissions.”

Energy and Environmental Affairs Secretary Kathleen Theoharides also said CPS will enable the state to further reduce emissions. 

“By ensuring the use of clean energy resources at the historically dirtiest and most expensive times of the day, we will be able to build on our progress in meeting our net-zero emissions goal and building a clean energy future for Massachusetts.”

U.S. Energy Storage Association (ESA) Chief Executive Officer Kelly Speakes-Backman called the program innovative:

“The U.S. Energy Storage Association (ESA) commends the Baker-Polito Administration as it launches the first-in-the-nation Clean Peak Energy Standard (CPS). The administration pioneered this innovative, new regulatory tool to reduce the costs and environmental impacts of periods when electricity demand is the highest and generation tends to be the most polluting. During these peak periods, CPS drives the use of energy storage resources to deliver clean energy where it’s needed, when it’s needed. CPS is an important step toward making the grid more resilient, efficient, sustainable and affordable. ESA looks forward to working with Massachusetts officials and stakeholders to ensure its success and to provide a replicable model for other states.”

The Clean Peak Energy Standard application process is scheduled to begin on August 17, 2020. And MassCEC and DOER plan to hold a stakeholder informational session on August 10, 2020. 

The CPES program which was first proposed in Governor Baker’s 2018 Environmental Bond Bill will be managed by the Massachusetts Clean Energy Center (MassCEC).

Go here more information on the  Clean Peak Energy Standard program.

More of the Latest Massachusetts News

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Mass. Economy Sees Worst Quarter Ever

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Although there are many indications that the economy is beginning to see signs of a slow recovery, the numbers are in for Q2. And, frankly, they aren’t good. Facts and figures show that Massachusetts’ economy, along with the rest of the nation, has seen its worst quarter ever. 

Here are some of the dismal statistics:

  • Mass. real gross domestic product (GDP) declined at an annualized rate of 43.8 percent in April, May, and June — the largest drop in history according to MassBenchmarks.

  • Payroll employment fell by 16.5 percent in Q2 — an annualized rate of decline of 51.4 percent.

  • Wage and salary income in Massachusetts fell 11.2 percent — an annualized rate of decline of 37.7 percent.

  • Mass. had the highest unemployment in the nation at 17.4 percent in June.

  • Mass. residents filed nearly 20,000 new unemployment claims for the week ending July 18.

Read more at MassLive.com.

Mass. Issues Strict Travel Restrictions 

Gov. Charlie Baker has signed off on a new executive order requiring travelers to fill out a travel form prior to arrival when entering the state from another state considered to be at high-risk for COVID-19. 

Moreover, a quarantine period of 14 days will be required unless travelers can show a negative COVID-19 test result issued within the previous 72 hours. 

The fine for violating the order is $500 a day. The order goes into effect Aug. 1.

You can read the full order and find more details here.

Cannabis Social Equity Proposal Calls for Loans Rather than Grants

Mass. lawmakers are contemplating a measure that aims to create a loan program designed to promote social equity within the state’s cannabis industry, whereas several other states with similar programs have offered social equity grants.

Detractors of the plan claim that it only offers minorities more debt instead of the promised equity. This comes at a time when there has been much criticism over the increasing lack of social equity in the state’s cannabis programs.

The current plan calls for 10 percent of cannabis tax revenue to be applied toward loans for social equity and economic empowerment. 

Comparing the plan to social equity programs in other states, California awarded $10 million in equity grant funding in October 2019 and an additional $30 million in April 2020. And Illinois devotes 25 percent of cannabis taxes to social equity grants. 

Mass. Cannabis Commissioner, Shaleen Title, in an interview with Boston Public Radio stated that she is ‘embarrassed’ by industry inequities as only three of 70 approved economic empowerment applicants have opened for business.

Meanwhile, Mass. cannabis regulators are seeking input on potential changes to regulations pertaining to both the recreational and medical cannabis programs in the state. The Mass. CCC will hold a virtual public hearing on August 3, 2020 at 10:00 AM. It will also be accepting written comments on the regulations through August 14.

Mass. Offers Commercial, Industrial, and Residential Buildings Financing for Energy Improvements

MassDevelopment and the Massachusetts Department of Energy Resources have announced the availability of financing for energy improvements on commercial and industrial buildings, as well as multifamily properties with five or more units and buildings owned by nonprofits. The program is being run through Property Assessed Clean Energy (PACE) Massachusetts. 

Under the program, property owners will be able to finance energy efficiency upgrades, as well as renewables, and gas line extensions. The financing would be repaid via higher tax assessments on the properties.

MassDevelopment President and CEO Lauren Liss had this to say:

“Together with the Massachusetts Department of Energy Resources, MassDevelopment is pleased to administer PACE Massachusetts, a new low-cost, long-term financing tool for property owners looking to reduce energy consumption through capital improvements. We continue to encourage cities and towns to ‘opt in’ and enable property owners across the state to take advantage of this program.”

You can learn more about the program at FraminghamSource.com.

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Eviction Moratorium, Housing and Transportation Dominate News

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This is the first week since it took hold in Massachusetts that the majority of the headlines are not about the pandemic. Hopefully, that’s a good sign. Check out last week’s news for a plethora of encouraging facts and figures related to Mass. COVID-19 infections and unemployment.

The big story this week is the extension of the moratorium on evictions and foreclosures until October and a lawsuit against the state to overturn the measures.

Gov. Baker Extends Moratorium On Evictions and Foreclosures Until Mid-October

The moratorium on evictions and foreclosures put in place in Massachusetts has been extended through at least Oct. 17. The proclamation by Gov. Baker comes weeks before the original expiration date of Aug. 18. Obviously the move has caused mixed emotions. 

While affordable housing advocates breathed a sigh of relief, landlords and lenders are furious and suing the state.

The sigh of relief by recently unemployed renters and homeowners may be short-lived. City Life/Vida Urbana Executive Director Lisa Owens told the Herald:

“This does give an additional two months of security and protection and that’s important for people, but unfortunately what that means is the moratorium will be lifted … right in the middle of an expected second surge and when people are likely facing higher levels of unemployment than they are facing now.”

Housing advocates are working to pass a “no brainer” bill that would halt evictions and freeze rents as far into the future as one year from the time that the governor lifts the public health emergency.

Renters are still obligated to pay rent under the moratorium. However, some renters who have no emergency savings and might be using the moratorium as a reason to not pay rent.  

Read more about the moratorium extension at The Boston Herald.

Landlords and Lenders Fight Back Against Eviction Moratorium

The moratorium on evictions is obviously upsetting to landlords and lenders some of whom are struggling financially as a result. Many property owners are already considering abandoning properties.

In response, attorney Richard Vetstein, representing a coalition of Mass. landlords has filed a lawsuit seeking to overturn the moratorium. The complaint, filed in a federal court, lists the defendants as the state of Massachusetts and the Executive Office of Housing and Economic Development. 

Another possible solution to the dilemma would be a bailout of property owners, renters, and/or homeowners. A $20 million relief fund has already been established to help renters and homeowners. However, that figure falls far short of being a cure for the problem. Gov. Baker says his administration is looking into increasing that fund. 

Real Estate Boston has more on this story.

Mass Eviction Moratorium at Least Partly Responsible for Drop In Home Sales and Condo Prices

For the third straight month, home sales and prices have dropped in Massachusetts. Many attribute the slowdown to a combination of factors including uncertainty about the economy, high unemployment, increased red tape, and the impact of the eviction moratorium. 

According to The Warren Group, publisher of Banker & Tradesman:

  • Sales of single-family homes and condos dropped by 25 and 30 percent respectively. 

  • The median price for a single-family home rose by 2.6 percent year over year to $440,000.

  • Condo sellers reported a 5.7 percent year-over-year drop in the median sales price to $396,000.

  • The median condo price in Greater Boston fell 4.4 percent year over year in June to $592,500.

One thing's for sure. The declines are not due to a lack of inventory which has been falling for some time. Tim Warren, CEO of The Warren Group had this to say about that:

“Even though single-family home sales saw a significant decline in June, it’s not due to a lack of demand. The statewide inventory has steadily declined for years on end, and COVID-19 has given homeowners new reasons to stay put for now. There seem to be plenty of buyers looking for homes, and the median price has climbed every month for 51 straight months.

“The median condo price took its first year-over-year dip in 14 months. Prior to this development, the median sale price exceeded $400,000 for four consecutive months and was actually on track to outpace the median single-family home price during the course of 2020. It seems like potential condo buyers are waiting to see how the pandemic progresses before they commit to urban living and elevator rides.”

And Jason Gell, association president and an agent with RE/Max Unlimited in Brookline believes the slowdown can be pinned on increased red tape and should ease up soon. He states:

“Our challenge these past few months has not been a lack of buyers; it’s the fact that the process of showing property and obtaining the necessary inspections and documentation requires more time and effort to perform the work and ensure the proper safety protocols are met. Although we lost much of the spring market, we think the summer months will be much busier than normal due to pent-up demand and a steady influx of new listings since May, especially in the condo market.” 

Another factor that is expected to help the market recover is the current low mortgage rates.

The Greater Boston Association of Realtors’ breakdown for 64 communities can be found here.

Could a Luxury Real Estate Tax Fund Affordable Housing?

By adding a surcharge for the sales of luxury properties, the city of Boston could generate millions of dollars that could be used to boost affordable housing projects. Nearly 40  U.S. states have such a surcharge. That is according to the Institute for Policy Studies (IPS). 

A petition drafted by City Councilor Lydia Edwards and Council President Kim Janey would give Boston the authority to collect a 2 percent surcharge on real estate sales of $2 million or greater. However, the proposal has sat in the Massachusetts House Committee on Ways and Means since December 2019.

Under the proposed plan, revenue from the surcharge would go into the Neighborhood Housing Trust fund for low-income housing projects.

Last year the group loaned out $16 million. That amount could have been generated by surcharges on the sale of just two buildings, according to IPS.

A study co-authored by Chuck Collins and Omar Ocampo states:

“As of July 14, 2020, 100 out of the 171 units at One Dalton Place — located in Boston’s Back Bay neighborhood — have been sold, ranging in sale price from studio units under $1 million (thus exempt from the transfer fee) to a penthouse unit that sold for $34 million.”

Several other cities in Massachusetts are considering similar measures.

Read all about it at the Bay State Banner. 

Mass. Senate Approves Transportation Bond Bill

Massachusetts senators have passed a $17 billion bond bill aimed at funding major transportation projects throughout the state. 

Among the allotments designated in the Senate bond bill are:

  • $5.6 billion for federally aided highways

  • $2 billion for highways with no federal aid

  • $574 million for local and regional transportation projects.

The bill would also establish a special commission to investigate roadway congestion and recommend options for equitable roadway pricing mechanisms.

The bond bill now heads to a committee that includes lawmakers from both chambers of the state legislature in order to reconcile differences between the House and Senate versions of the bill.

Read all about it at LandLine.

Is Massachusetts Planning To Phase Out Natural Gas?

Massachusetts officials have begun considering a managed decline of the state’s natural gas industry. The move would be part of a larger effort to meet the state’s clean energy goals.

Gas-fired appliances account for two-thirds of the space and water heating energy which is the second-largest category of greenhouse gas emissions in the sate. 

The plan currently calls for a two-phase investigation. 

  • Phase One - Gas companies would be required to prepare “detailed economic analyses and business plans depicting future gas demand in a carbon-constrained economy.”

  • Phase Two - Focuses on the development and implementation of policies aligned with the 2050 net-zero target.

A comprehensive report by Green Tech Media covers this topic in detail.

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End of Session In Sight

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Life continues to be looking up for residents of Massachusetts this week with the three-day average of coronavirus daily deaths dropping from 161 at the start of May to just 13 this past week. And although Mass. still has the highest unemployment roll in the U.S. standing at just over 17 percent, nearly 30,000 more jobs were added in June than in May. 

Check out last week’s news for more details.

Lawmakers Face Pressure to Pass 100% Renewable Bill this Session

With the end of the current legislative session near, “activists, municipal officials, businesses, and civic organizations are urging lawmakers to take action on a bill that would require a 100% renewable electricity transition by 2045,” according to Energy News.

Gov. Charlie Baker has set a goal of achieving net-zero emissions by 2050. However, a growing list of stakeholders are saying that at the currently planned pace, the transition to clean energy would take until the turn of the century. 

In response, state Rep. Marjorie Decker and state Rep. Sean Garballey have cosponsored bill H.2836 calling for 100 percent renewable energy sources to meet the state’s electricity demands by 2035 and transportation and heating by 2045. 

Originally, lawmakers were given a deadline of early June 2020 to make a decision on the legislation. However, that date was moved to July 22 due to all the attention required for the state’s coronavirus response. 

A letter signed by 150 municipal officials from across the state, plus Environment Massachusetts and the Sierra Club has implored lawmakers to advance the bill forward before this legislative session ends. Furthermore, another letter signed by more than 80 medical professionals from some of the state’s most prestigious hospitals decries the damages to public health from burning fossil fuels and urges more substantive action. 

A recent report by Environment Massachusetts outlining the steps to achieve 100% renewable energy includes:

  • Expanding energy efficiency efforts and standards

  • Improving public transportation 

  • Making communities more walkable

  • Expanding offshore wind projects

  • Increasing solar power generation 

According to advocates of the 100 percent renewables goal, Mass. needs to catch up with other states, municipalities, and even businesses that have already committed to clean energy. They point to five U.S. states plus Washington, D.C., that have set 100 percent renewable targets plus another 10 states that are aiming for a complete transition to clean energy.

Several large Massachusetts businesses, including Biogen, Iron Mountain, and New Balance have signed onto a global corporate sustainability initiative known as RE100 pledging to transition to 100% renewables by 2050. Many municipalities in the state have also committed to 100% renewables by that date including Cambridge, Lowell, and Northampton. 

Energy News has more on this story.

Eastern Mass Residents See 21% Lower Energy Costs

As of July 1, Eversource Energy customers in Eastern Mass. are enjoying lower energy bills after the Department of Public Utilities approved a 21% lower electricity rate. The new pricing saves customers around 8 percent on average or more than $150 per year. 

Eversource Senior Vice President and Chief Customer Officer Penni Conner had this to say:

“We're pleased to be passing along a summertime price cut to our customers who get their electricity supply through our Basic Service option. This reduction will come just in time to help customers who use air conditioning to cool their homes and businesses during the hottest days of the year. It will also help those customers experiencing financial hardship due to COVID-19.”

Eversource attributes the rate reduction to an overall reduction in wholesale energy prices. The current wholesale rate is 9.877 cents per kilowatt-hour. That figure is down from the previous six-month rate of 12.517 cents. 

All of Eversource’s customers have the option of purchasing electricity from its competitors whose prices have recently ranged from 6 cents per kilowatt-hour to 12 cents per kilowatt-hour. 

Read more at MarketScreener.com.

Transportation Bond Bill Passes

Massachusetts legislators passed a $17 billion transportation bond bill aimed at funding improvement to the state's roads, bridges, and railways. 

A large portion of the funds will go to improvements to public transportation and roads. The bill also attempts to benefit communities that have been disproportionately impacted by the pandemic. 

Included in the measure is $50-million to develop the East-West Rail that will run between Springfield and Boston. 

WWLP has more on this story.

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Moving Forward with Caution

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Amidst an unpredictable recovery, record setting COVID19 infections throughout the country, and residual worry about reopening the Commonwealth’s economy, there was room for some of the biggest transportation news in a generation. Let’s get right to it.

Bourne & Sagamore Bridges To Be Replaced

Plans are underway to replace both the Bourne and Sagamore bridges which connect Cape Cod to the Massachusetts mainland. The project will be funded by the federal government with costs estimated to reach about $1.5 billion.

A memorandum of understanding between the Mass. Dept. of Transportation and the U.S. Army Corps of Engineers after the Corps approved a final report on the project earlier this year.

The new bridges will be built next to the existing bridges. Drivers will enjoy four wider lanes under the new plans plus lanes for pedestrians and bicyclists.

As part of the agreement, the Army Corps “will maintain control of the existing bridges until the new bridges are completed at which point control of the new structures will be transferred to the state,” according to the report in the Boston Globe.

Gov. Baker said Tuesday that the current bridges “will be maintained as we look toward their successors.”

According to state Transportation Secretary Stephanie Pollack, the next step in the process is to finalize the design and construction plans. 

“The sooner the better,” says Sen. Elizabeth Warren, in order to avoid sinking hundreds of millions of dollars in repairs into the existing bridges.

Congressman Bill Keating had this to say:

”These are more than bridges. These are lifelines. We need modern bridges that will deal with modern vehicles, modern commercial transport and open up passageways for bicycles and pedestrian traffic. This is indeed a milestone of significance. It’s a new chapter in Cape Cod’s history.”

Once construction is complete and the new bridges enter service, MassDOT will take over their ownership and operation. State and federal officials described the switch as a more natural fit that allows the department to align its work on surrounding roadways with the highly traveled canal crossings themselves.

The bridges are more than 80 years old.

Boston.com has more on this story. 

Mass. Unemployment Claims Drop For Second Straight Week

For the second week in a row, unemployment claims have fallen in Mass. 

Here are some quick unemployment statistics for the state according to the Boston Herald:

  • From June 14 to June 20, 9,541 people filed an initial claim for regular unemployment insurance.

  • Over the same period, 558,269 people in Massachusetts filed continued unemployment insurance claims.

  • From March 15 to June 20, a total of 1,028,424 Massachusetts people filed initial claims, or about one-quarter of the state’s workforce.

  • In March, the number of people filing an initial unemployment claim was around 180,000.

  • The number has dropped to less than 30,000. 

  • More than 1.3 million Americans applied for unemployment benefits last week.

Read more at the Boston Herald.

Coronavirus Data Shows Positive Trend

Although the U.S. is experiencing a surge in coronavirus cases with ICUs at capacity in many cities, positive test rates remained low this week in Mass. According to health, 15 more people died pushing the total up over 8,200 and 140 new cases were reported on the second day of Phase 3 reopening. 

So far more than 110,000 cases have been reported in Mass., however, more than 93,000 people have fully recovered.

Here are some current Mass. COVID-19 statistics from the Boston Herald:

  • The state’s current total COVID-19 hospitalizations is above 600. 

  • 104 patients are in ICU, 50 are currently intubated.

  • Hospitalizations declined by 2,941 since May 5.

  • The peak of hospitalizations was 3,965 on April 21.

  • The three-day average of hospitalizations has dropped from 3,707 on May 1 to 620 now.

  • The seven-day weighted average of positive tests declined from 16.6% on May 1 to 1.9% now.

  • So far the state has tested more than 1,144,000 residents.

  • Middlesex County has the most confirmed cases at 24,243 cases

  • Suffolk County is second with 20,048 reported cases.

  • 23,595 residents and health care workers at long-term care facilities have contracted

  • Of 8,213 total deaths, more than 5,000 are connected to long-term care facilities.

During Phase 3 of the state’s reopening, many gyms, fitness studios, movie theaters, museums, and outdoor venues reopened Monday with limited capacity and added restrictions. The maximum number of people allowed to gather increased to 25 people indoors, and 100 people outside. 

More details are available at the Boston Herald’s website. 

Hospitals Saw More Than $2 Billion In Losses Due To Pandemic

Massachusetts hospital lost more than $2 billion for the period ending March 31, 2020 as a result of the initial spread of coronavirus. That is according to data compiled by the state Center for Health Information and Analysis.

According to the data, the median margin for acute hospitals was at -2.7% during that period, a 6.9% decrease from the same period in 2019. 

Seventeen of the 21 hospital health systems that reported data to CHIA had negative total margins while all 21 reported negative operating margins.

Here are some statistics on Mass. hospital losses for Q1:

  • Baystate Health lost $87.9 million.

  • Boston Children’s Hospital and its subsidiaries lost $383.5 million. 

  • Mass General Brigham, the state’s largest private employer lost more than $1 billion. 

  • UMass Memorial Health Care reported $81 million in net losses. 

  • UMass Memorial Medical Group reported a $36.4 million loss. 

  • The HealthAlliance-Clinton Hospital lost $6.4 million.

  • Marlborough Hospital lost $3.1 million

  • UMass Memorial Medical Center reported a $1.5 million loss.

Read more on this story at Mass Live. 

Mass. Expands Electric Vehicle Initiatives

Under an expansion of electric vehicle incentives, nonprofits and businesses with fleets will have new incentives to purchase electric vehicles. The move “is intended to maximize the environmental impact of the program at a time when a slumping economy has slowed vehicle sales across the state — and progress toward the state’s carbon emissions goals,” according to a report in Energy News. 

Gov. Charlie Baker has said that the state plans to be completely carbon-neutral by 2050. The Massachusetts Offers Rebates for Electric Vehicles program (MOR-EV), launched back in 2014, is part of the strategy to achieve that goal. 

The program currently provides rebates to consumers who purchase electric vehicles of up to $2,500. More than 1,500 rebates were handed out in December of 2018. That number was more than four times the count the previous year. However, rebates were lowered to $1,500 in 2019 due to budget constraints and by mid-year had been suspended entirely. 

This past December, the state revived MOR-EV for the next two years with $27 million in funding annually, or enough to provide more than 20,000 rebates. 

However, so far in 2020 only 727 rebates have been requested totaling $1.5 million. The drop is being pinned on the massive reduction in traffic as a result of coronavirus restrictions. 

Energy News has more on this story. 

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