THE PROBLEM: Naturally Occurring Affordable Housing (NOAH) is under growing threat nationwide.
The term NOAH refers to unsubsidized housing that is affordable to low-income residents because of history and low market values.
According to a recent study by McKinsey & Company, NOAH represents the largest supply of affordable units in the U.S. [source: https://www.mckinsey.com/industries/public-sector/our-insights/preserving-the-largest-and-most-at-risk-supply-of-affordable-housing]. See more about NOAH at this site devoted to preservation of NOAH.
In markets where values are rising, though, developers are buying up these properties, displacing theexisting tenants, the re-renting the properties at much higher rents.
The problem is particularly acute in the Boston metropolitan area. According to a recent study by theMetropolitan Area Planning Council, "21% of residential properties sold in Greater Boston in the period from 2004 through 2018 were purchased by investors."
Many of those transactions resulted in rent increases that placed the units involved far beyond the means of the original tenants. While there have been various efforts at the state and local level to address the situation, they have not been enough. For example, Massachusetts currently has a shortage of more than 200,000 housing units for households at or below 50% of the area median income.
According to the National Low Income Housing Coalition, for every 100 “extremely low income” renters, there are only 46affordable rental units available.
Devenscrest is right in the heat of this battle because “the market” for high end luxury homes is quickly moving west across the state and has now reached Ayer. We are helping tenants in our area understand what is likely to happen to them in the near future, and what they can do about it to prepare.