Is There Such a Thing as ‘Too Much’ Market-Rate Housing? 

A LETTER FROM ALISA MAGNOTTA

Dear Friends,  

I recently read a newspaper article implying that there is enough – actually, too much – market-rate housing in Hyannis. Our organization knows all too well about our regional housing crisis, as evidenced by the 940-plus applications that we received for Cape View Way, a 42-unit affordable property that we are developing in Sagamore Beach. Most of those applicants are from Barnstable County and willing to travel long distances to work in other parts of the region if only for a place to live. 

While there are many factors that have contributed to the current crisis, it’s clear that our region’s housing supply has not kept pace with demand. We have a shortage of year-round units, and households making less than $200,000 a year still struggle to find a home they can afford. Even those who manage to find rentals are paying nearly 70% more for rental housing than the national average. 

Developing housing is a high-risk business with many independent variables like land and construction costs that drive up the rents needed to service the debt for projects. When more apartments come online, local rents may decrease somewhat; the lower rental income may change the amount a developer can borrow. Any reduction in median rents may be a problem for a bank or developer, but it would be music to the ears of locals searching for a place to live. 

The Town of Barnstable took intentional action to address the housing crisis – and we are seeing results. With the certainty of zoning and expedited permitting now in place, coupled with the demonstrated demand for rentals at all income levels, developers have more than enough incentives to move forward with confidence. 

What we need across the Cape is an increased supply of housing, but it needs to be more than a dichotomy between luxury and affordable. New developments help address the “missing middle” by adding both affordable and market-rate housing that is urgently needed by our workers. Job vacancy rates, decreases in school enrollment, and the median age of our population make clear the enduring need for housing production. 

The amount of housing development in Hyannis is an excellent example of how regulatory changes can spur innovation, allowing the marketplace to solve societal problems without using taxpayer dollars. If more towns followed their lead, then we truly could begin to see the housing crisis abate.