Source: State House News Service
Author: Chris Lisinski

Single-family home sales in Massachusetts plummeted last month to the lowest November total in eight years while prices climbed to a new high, according to the latest report from The Warren Group.

Across the state, there were 3,806 sales of single-family homes in November, reflecting a 29.4 percent drop from the same month one year ago and a 34.7 percent decline from two years ago, The Warren Group said in a report published Wednesday.

That’s the lowest November total since 2014, raising the stakes in a housing debate that lawmakers have been reluctant to dive into despite many families feeling financially burdened or locked out of the market.

“The significant drop in single-family home sales came as no surprise in November,” said Warren Group CEO Tim Warren in a statement. “A tightening inventory, higher interest rates, and economic uncertainties have had a big impact on consumer confidence, and real estate activity has taken a hit in recent months. The more important development is the slowdown in median price hikes. The 3.9 percent increase we saw in November was the smallest percent increase on a year-over-year basis since June 2020.”

November’s sales slowdown continued a more than year-long trend. With only one month left in 2022, year-to-date single-family home sales are down more than 8,000, or 14.5 percent, over last year, The Warren Group said.

Sales of condominiums also declined in November, falling to 1,663, or 21.8 percent less than November 2021.

Prices for both single-family homes and condos climbed once again. The median price for a single-family home in Massachusetts last month was $530,000, which was 15.2 percent higher than November 2020.

On the condo front, the median sales price rose 6 percent from November 2021 to November 2022 to hit $475,000.

“The condo market followed very similar trends to the single-family market in November — a massive year-over-year decline in sales paired with a more modest increase in price,” Warren said. “It’s clear that neither market is immune from current economic conditions.”

While they have no say over rising interest rates that are raising borrowing costs in housing, Gov.-elect Maura Healey and top Democrats in the Legislature face pressure to make housing production a focus of their work in the 2023-2024 lawmaking session as soaring prices and a lack of available options weigh on families.

Although they approved Gov. Charlie Baker’s push to reform the voting threshold required for local zoning changes and some funding for housing development, lawmakers so far have been unable to significantly address the housing shortage fueling the crisis, a shortage that some critics say is due to local zoning rules.

Healey and Lt. Gov.-elect Kim Driscoll plan to stand up an individual Cabinet-level secretary of housing, splicing that role off from the current combined secretary of housing and economic development, and task that person with implementing a “coordinated housing policy.”

They also said in a campaign plan that the state “needs to be much more aggressive in its efforts to increase housing production,” calling for work to examine use of state land that could be converted to housing and to help local officials develop more homes.

“Maura and Kim will empower communities to enact local policies that best address their own, unique housing challenges, while encouraging regional cooperation and technical assistance. This may include local rent stabilization policies, zoning reforms to allow housing at greater densities, specific housing production supports, and more,” Healey’s campaign said in its housing plan. “Maura and Kim recognize that one size does not fit all and will help municipalities be creative in their solutions to tackle housing, as well as building a larger regional and statewide strategy. They envision a Massachusetts where all residents have access to safe and affordable housing options, regardless of the region in which they live.”

With the onset of the COVID pandemic, many homeowners were forced to stay home or work from home. As a result, they started more home improvement projects. According to the Improving America’s Housing 2021 report from Harvard University, the home remodeling market bounced back quickly since March 2020 – making 2020 the tenth consecutive year of expansion for the improvement industry.

This remodeling market also helped the dumpster rental businesses which ultimately benefited Julie Paradise, owner of Bin There Dump That, located in Fitchburg, Ma. Bin — celebrating 10 years in business in May 2023.

Paradise started the Bin There Dump That franchise when she was laid off from her corporate job. She and her husband decided to take the risk and call something their own. With the help of the North Central Massachusetts Chamber of Commerce – the Paradises started hiring more people and successfully grew their dumpster rental business into the thriving one it is today.

“It was scary at first, but we got to know other Bin There Dump That owners and joined the [North Central Massachusetts] Chamber of Commerce,” said Paradise. “We learned more about business necessities: mechanics behind owning a business, marketing, networking, and more.”

“The [North Central Chamber is great, and everyone there is fabulous,” she added. “You can talk to anyone about anything, and no one would ever say, ‘That’s not my job.’ They know right where to send you, and what direction to send you in. They introduced me to the Small Business Development Center, SCORE mentoring, and more services that I learned about through the Chamber that helped us grow the business over the years.”

Bin There Dump That dumpster rentals are residential-friendly. Most of their dumpsters are sent to people’s homes as homeowners are getting ready to move, renovating their kitchen or bathroom, getting a roof replaced, or just organizing and cleaning up their homes.

“I always like to say, ‘You can’t fit two cars in a one-car garage!’” Paradise laughed.

Bin There Dump That also works closely with contractors, renovators, or roofers to coordinate clean-up for those who working in people’s homes.

“We love working with people who have never rented a dumpster before because they have a lot of questions,” said Paradise. “We love being able to help them out so they can relax about home improvement projects. We provide advice on what to do with recycle items, and we take care of the dumpster placement and taking it away. We want to make sure they know what to expect and can rely on us when renting a dumpster.”

In addition to dumpster rentals for residents, Bin There Dump That provides dumpsters to community programs like Grotonfest, Habitat for Humanity, as well as charitable events like a recent charity golf outing with the team to help support the Boys & Girls Club. In the spring, they provided dumpsters to help raise funds for the Lunenburg Skate Park, currently under construction. Homeowners could fill up their trunks with unwanted items or garbage and pay a certain amount to help raise money for building the skate park.

Paradise praised her Bin There Dump That staff and employees, who all share the same core values — life first, family-oriented, honesty, trustworthy and hard-working.

“We’ve got the best people working for us,” she said. “You can go to our website and see everyone who works here. They’re just a really great group of people; we get together every quarter and do something fun together to celebrate successes. As we like to say, ‘We’re the clean guys in a trashy business!’”

As the dumpster business was contact-free prior to the pandemic, Bin There Dump That still took the necessary safety precautions to protect both their staff and customers. In addition to dumpsters continuously being kept clean, the handles and trucks were wiped down and sanitized before and after every drop off and pick up. PPE was also provided, ensuring that everyone was well-protected in all aspects of dumpster rental.

To learn more about a dumpster rental for your needs, from renovations to a residential clean-out, visit Bin There Dump That’s at www.wachusettdumpsterrental.com, or contact them at 978-582-1176 or wachusett@bintheredumpthat.com.

Last week, the Clinton Select Board held their annual tax classification hearing to set the residential and commercial tax rates for FY23. Through a spirited and sometimes contentious discussion, the Board ultimately voted to maintain the business community’s share of the Town’s property tax burden at 150 percent of the residential levy. Massachusetts allows two models for property taxes: single and dual rates. The single rate means that both residential and commercial properties are taxed at the same level. Meanwhile, a dual rate system dictates that one group – businesses – shoulders more of the burden and pays a higher share of taxes based on a property’s assessed value.

The North Central Massachusetts Chamber of Commerce was present at the meeting and testified to the importance of continuing to narrow the shift between commercial/industrial and residential. “Making the commercial tax burden more competitive will better position Clinton to attract new business investment, retain existing businesses, increase tax revenues and will send a powerful message that the town is business friendly,” stated Chamber President Roy Nascimento in his testimony, “Communities thrive with a solid base of businesses, jobs, resources and tax revenues, and these are the result of business-friendly policies and tax rates.”

The Select Board had been moving gradually towards reducing the shift, implementing the recommendation a special tax classification taskforce made in 2018 to lower the dual tax rate over time and move to a single tax rate long term in an effort to make the town more competitive to business investment. At last week’s meeting, Select Board member Mary Dickhaut and Chair Matthew Kobus advocated for increasing the shift to 154%, and Vice Chair Sean Kerrigan and Select Board member Julie Perusse proposed reducing the shift to 148% in line with the recommendation from the town’s tax classification taskforce. Ultimately, the Select Board voted in favor of maintaining the shift at 150%, with Select Board member Edward Devault casting the deciding vote. The actual impact for a commercial or industrial taxpayer will vary based on factors such as the assessed value of the property, but overall most commercial and industrial taxpayers will be seeing a modest increase in their tax bill compared to the prior year. In maintaining the 150% shift that the Town adopted, the average commercial property valued at $369,923 will be taxed at $62 more than the previous year. Alternatively, if the Select Board had voted to reduce to the 148% shift as recommended, the owner of that property would have seen a decrease of $49. At the maximum shift of 175%, the commercial/industrial rate would have jumped to $26.16 per thousand dollars and the taxes on the average commercial property would have risen by approximately $1,445. The Chamber would like to thank Select Board members Kerrigan and Perusse for their support of reducing the tax rate.

Study focuses on bringing “hidden and future workers” into the workforce

The North Central Massachusetts Chamber of Commerce today announced the completion of a comprehensive workforce study to provide solutions for employers who are struggling to find skilled labor and offer suggestions to balance the labor market now and into the future.

The study, “Worker Shortages and the North Central Massachusetts Region: Engaging Hidden and Future Workers to Grow the Local Economy,” was prepared by the UMass Donahue Institute’s Economic and Public Policy Research group, a leading provider of applied research to help clients make more informed decisions about strategic economic and public policy issues.

Focusing on workforce growth challenges and solutions, the study outlines workforce barriers related to geography, skills, structure, and work-life balance, and includes short-, mid- and long-term recommendations for how to grow the North Central workforce.

The study utilized a collaboration between regional business and education leaders and workforce development experts, which revealed two classes of workers who are not being fully utilized, but who have skills local employers need. “Hidden workers” are identified as applicants who are screened out of consideration for jobs or those who have no choice but to remain out of the workforce due to barriers beyond their control, and “future workers” are people who soon will be in the labor force due to age, location, technology and other factors.

“Like many other areas of the Commonwealth, North Central is feeling the impacts of stagnant labor force engagement beyond the effects of pandemic shutdowns,” noted Roy Nascimento, President and CEO, North Central Massachusetts Chamber of Commerce. “Our region is particularly susceptible to labor force shrinkage due to our aging population and slower population growth, but also because our hidden and future workers within the region have other needs which are not being met by our local labor market. In fact, some workers are finding the job search to be just as difficult as it was before the pandemic. The barriers and recommendations in the plan will require all different community stakeholders in North Central to work together to meet the regions workforce needs.”

The issues are complex and varied. Some stem from a lack of affordable housing adjacent to jobs and transportation to and from where affordable housing is available. Others deal with current skills sets that, sadly, no longer align with industries in the area or overly aggressive online applicant filters that may discriminate an applicant’s past. The result? A complete different set of challenges facing today’s workforce than those of years past. In fact, the study revealed the most diverse set of issues the team has seen in recent years as both workers and employers grapple with work-life balance, prioritizing shift times, complex benefits, and location issues. All of which are a far cry from the industry, company or position in the company which made jobs attractive in the past.

The study also explored a variety of solutions to pull those hidden and future workers into the labor force, including more and better childcare choices, implementation of new worker transit, the creation of innovative training and credentialing programs, and fostering relationships with local community colleges, businesses, and prisons.

“North Central’s workforce is aging, and its slower population growth is projected to continue,” said Nascimento. “In order to meet North Central’s workforce needs, employers, educational institutions and workforce development agencies must collaborate and create overlapping strategies to better engage and entice these groups into the labor force.”

Local institutions, such as Mount Wachusett Community College and Fitchburg State University, currently collaborate with employers to coordinate programs geared toward community and employer needs. Mount Wachusett Community College, in collaboration with employers, began developing a new Veteran Worker’s Initiative to assist local veterans with the transition from military skills to college/civilian skills. That program connects regional employers to students on campus, hosts panel discussions with organizations that educate employers on how to be responsive and sensitive to veteran needs and uses the college’s career services to connect students with business partners in the area.

“We are grateful for the North Central Massachusetts Chamber of Commerce’s focus on bringing education and industry together to seek pathways and solutions to the employment challenges in our region,” said James L. Vander Hooven, President of Mount Wachusett Community College. “Mount Wachusett Community College has long been committed to the Chamber’s efforts and looks forward to continuing our partnerships to ensure a well-trained workforce.”

In an effort to facilitate collaboration between employers and educational institutions, the Chamber recently hired a Talent and Education Initiatives Program Manager to support the development, retention and attraction of a qualified labor force. “By working with employers, regional partners and educational institutions on developing strategies and programs to build and strengthen our current and future workforce, it was important for us to have a team member focused on these efforts to help strengthen the collaboration,” added Nascimento.

While collaboration will be key to growing the labor force in North Central Massachusetts, the study concludes that employers need to make working easier by overcoming the identified barriers.