Key worker housing : a demand analysis of middle-income workforce housing in eastern Massachusetts

Abstract

The Boston Metropolitan Area is one of the most expensive places to live in the United States. In recent years studies have speculated that middle-income workers have had to endure increased commute times as they have moved farther away from their jobs in order to live in adequate housing that is affordable. These long commutes may signal shortage and demand for more housing that the area's workforce can afford in the Boston metro area. This thesis intends to substantiate or debunk some of the above claims using Eastern Massachusetts' teacher, nurse, firefighter, and policeman "key workers" as a proxy for middle-income workforce households, and to better understand where demand may be greatest for middle-income housing. Key workers provide essential education, heath, and community safety services fundamental to the long-term vitality of our cities and towns. Key workers would therefore likely be at the forefront of any new middle-income housing policy either at the town or state level. The analysis integrates both 2000 Census micro-level individual and micro-level household data by job location to provide a more accurate picture of affordability and demand on the household level for 165 communities in Eastern Massachusetts.

(cont.) Incorporating a spatial multi-dimensional approach beyond simplistic median incomes and median house price comparisons, this thesis layers additional pieces of critical individual and household data such as number of jobs by location, homeownership and rental rates, marriage rates, commute times, and housing types. Once mapped by 35 discrete areas to show distinctive area differences, this rigorous multi-dimensional analysis offers a more realistic and more accurate state of localized key worker housing demographics and demand. Particular attention is paid to 30-44 key worker rental households who are the most likely candidates for first time home purchases and Boston's estimated 8,720 key workers who both work and live in Boston. The City of Boston is an important focal point due to its 24% share of all full-time key worker jobs and residency requirements for many city employees. It is the recommendation of this thesis that the cities and towns whose key workers travel the longest commute times should investigate their current housing options vis-à-vis key worker household incomes and consider key worker housing programs and supply incentives in order to preserve quality cost effective key public services.

(cont.) Boston should also strongly weigh a key worker housing program if it hopes to strengthen its residency requirement and retain community stabilizing key worker and middle-income workforce households.