Income inequality is main driver of the housing needs report.
Ray Ewing

Housing Needs Assessment Portrays an Island in Crisis

A recent benchmark housing needs assessment conducted by the Martha’s Vineyard Commission paints an increasingly dire picture of the Island’s housing crisis.

The Island population is growing. Housing stock is shrinking. The cost of living is rising. Prices are skyrocketing.

These data points are not new. But they aren’t getting better.

A recent benchmark housing needs assessment conducted by the Martha’s Vineyard Commission paints an increasingly dire picture of the Island’s housing crisis, suggesting that economic inequality has risen dramatically on the Island in the past decade while more recent factors, like the Covid-19 pandemic and the booming real estate market, have exacerbated critical housing shortages for Vineyarders.

The report was prepared by commission economic development and affordable housing planner Christine Flynn in coordination with Karen Sunnarborg Consulting.

Housing needs assessments are conducted every five to 10 years on a community-wide basis, and used by towns as a resource for regional, long-term planning and grant writing. The last assessment was done in 2013.

While unsurprising, the 2020 report, finalized late last week, provides a startling litany of data points that spell out the depth of the Island’s sweeping housing crisis. It finds that homelessness has grown, rents have risen, and affordability gaps are higher than ever — even as the Island has taken steps to mitigate the problem in the past two decades.

“The Island’s socio-economic diversity is eroding as lower income households are dwindling in number and in proportion to the population,” the report states.

The so-called affordability gap — the difference between median home prices and what the average Island family can afford — was $225,000 in 2012. In 2020, the gap grew to $735,000, a 247 per cent increase and far higher than the 13.3 per cent inflation rate during the same period.

In an interview, Ms. Flynn said growing income inequality was one of the report’s starkest data points.

“That number is staggering,” she said. “You see the gap getting wide. But just over 2020, with Covid-19, you have seen a staggering extension of that gap, getting that much wider. And I think that has made things so much more acute on the Island.”

Overall, the year-round Island population has grown by 16 per cent over the past two decades, from 14,987 to 17,312, according to census data, representing one of the highest growth rates in the state. During that period, the report says, year-round households with incomes less than $35,000 decreased by 59 per cent, while those with incomes of over $150,000 increased by 558 per cent.

The report found that a total of 724 seniors, or 31 per cent of those age 65 or older, had incomes of less than $35,000 based on 2019 census estimates. There were also 694 households in this income range with residents younger than 65. Year-round housing stock decreased by 8.3 per cent, or 603 units, over the past two decades, while seasonal housing stock increased by 15.4 per cent, or 1,428 units.

“There are significant numbers of households who have very limited financial means and are likely confronting enormous challenges affording to live on the Vineyard,” the report states.

“In 2019, the Island’s average weekly wage of $1,094 was 70 per cent of the state average and the median home price was more than double the state’s, clearly signaling the disparity between what residents can afford and existing housing costs.”

Average monthly rents have also climbed from $1,180 in 2010 to $1,459 in 2020. The number of rental units costing more than $1,500 per month jumped from 207 units in 2010 to 710 units in 2020. A quarter of all rentals cost more than $2,000 per month.

The pandemic has compounded those problems, the report found. Unemployment skyrocketed on the Island last spring, going from 501 jobless workers to 1,927 in the course of a month. By November, Dukes County still had the second highest unemployment rate in the state. Those changes occurred just as the real estate market started to boom, displacing long-term Islanders and inflating home and rental prices, according to the report.

“Covid has . . . caused a surge in home sales that are increasing sales prices considerably as more people from outside of the Island are looking for a safer retreat from the pandemic on the Vineyard,” the report said. “Those with insecure housing, who have relied on winter rentals in the past, have been outbid by more affluent families from off Island or their winter rental has been sold due to the pandemic.”

Ms. Flynn sounded a note of caution about interpreting the data on a straight line, given the thorny environmental issues on an Island under much pressure from growth and development.

In short, she said the affordable housing problem cannot be solved without first solving the issue of nitrogen overloading in ponds.

“The environment, water quality, and housing: they are all connected, particularly to sustaining our year-round economy,” Ms. Flynn said. “These issues need to be addressed more comprehensively.”

The report points to Island Housing Trust’s use of the advanced septic technology in its Greenwood avenue affordable housing project as a positive example. It also cites creative affordable housing zoning, like family lots in Chilmark, and Harbor Homes congregate housing for low-income Islanders, as steps in the right direction.

A proposal to create an Islandwide housing bank funded by a real estate transfer fee has also picked up steam in recent weeks, with a coalition forming to pitch the proposal for the 2022 legislative session. The housing bank would be an example of new municipal funding options referenced in the report.

But the Island’s affordable housing crisis continues to present far more problems than solutions. Although towns have made progress, many of the recommendations in the 2013 report ring even more true today. Those include focusing on higher-density affordable housing developments, a greater emphasis on regional solutions, and adapting zoning to allow multi-unit affordable housing in appropriate areas.

A targeted goal of building 50 new affordable units per year as part of the recent housing production plans has never been met. The pandemic has made it even harder. But Ms. Flynn said there remains hope.

“We’ve always been behind the eight ball in terms of chipping away at addressing those needs . . . and I think with Covid-19, we’re that much farther away,” she said. “Perhaps this study can be a resource.”

Comments

Submitted by Anonymous (not verified) on Thu, 02/04/2021 - 18:07

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Bob Edgartown

Government spending on all levels local, state and federal have made it harder to stay afloat. Here on the island taxes have only gone one way and forcing many who have spent their entire life here off the island.

Submitted by Anonymous (not verified) on Thu, 02/04/2021 - 21:17

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fact checker edg

Lets be clear. The average REPORTED weekly wage is a fraction of what these people actually earn, working off the books, under the table for cash. I've lived here since the 1970's and those of us have heard the same thing forever. We rented rooms in our houses, lived in the cellar, lived in a tent and rented our homes to strangers during the season to pay the mortgage. We didn't ask for a hand out. If there is a will there is a way. AND in the interest of accuracy the wages here far exceed those on the mainland for manual labor, thats why the early boats are full of commuters who come here for the high paying construction jobs and spend hours a day on the boat travelling to and from. So those of us who worked hard, suffered inconveniences etc aren't going to pay for those who chose to blow their money on boats, bars, vacations and monster 4 wheel drive looba trucks.

Tom Lane Vineyard haven

Fact Checker, right on that was how it was, it's just now the buy the deposit is much higher and with banking regulations now, there is no way to claim illegal income and hide from IRS as in the 70's a lagre group of labors did.

Native Vineyard Haven

I agree with fact checker. Being born and raise on MV, we all knew the sacrifices we had to make to afford to live here. Working two jobs, renting out rooms, no vacations. There has and always will be a housing issue on the Vineyard. But we did what we had to do. Now, they move here and want everyone else to pay their way. Most of them know they cannot afford it, but still want help. As they drive their new Land Rover and go to the food bank. Enough is enough. The people who really do need a hand are the ones who are not getting help.

fact checker edg

fixed rate mortage was 18 percent. variable rate was 13.75 percent. Buyers today get money CHEAP. When i refinanced my mortage for 9.5 percent fixed rate i thought i stole it. Wages today are excessive here , thats why there are commuters daily filling the boats.

John

$40,000 (cost of the house I moved into on school st in Edgartown) in 1970 is equivalent in purchasing power to about $268,529.90 today,anyone sell me a house today for $300,00 downtown Edgartown today?

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 00:18

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William CHILMARK

517 that is the legal number of affordable homes the island has failed to produce. The new island SHI inventory numbers from DHCD are out, MV is failing badly. This is a legal target set by the State. This is a glaring fact..

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 09:19

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Mm CT

Another serious consequence of what is happening here. As prices skyrocket, those who can afford to live here are only here infrequently over the course of the year or even the season. As a result, there is less and less rental availability (very high end homeowners don't want or need rental income). Less rental availability means fewer tourists. Fewer tourists mean fewer folks to spend their vacation dollars in restaurants, shops, liquor stores, etc., etc. on MV. They'll spend those dollars somewhere else. The outcome here is not promising. Someone needs to be thinking about the future strategically.

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 10:03

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Troy Vineyard Haven

All true. Look at the writing on the wall. The end result is an island of the elite with casinos everywhere. The 12 million dollar mansions increase while the backbone families of the island get shoved off. Wait till gas doubles so the fed's can cover their foreign giveaway. Please have some fortitude to print this.

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 10:07

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Rena Vine Oak Bluffs

This article is run every year (just like the Onion runs the same article every time a mass shooting takes place to make the point that nothing changes) and there's never any movement. Here's how a friend of mine bought a condo in San Francisco. He had to be a resident and work in the city for 5 years for the program. He's a government employee with a normal salary and qualified to buy a condo 50/50 with the city of San Francisco buying the other half (it was modest $640k 1bed/1bath). They will make money in the end with being a passive owner and he must maintain the unit. Something like that could work here.

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 10:13

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Zephyr

How about a vacant building tax with the money dedicated to affordable housing? Walk around any part of the island towns in the winter and there are lots of dark homes that could be winter rentals. That doesn't solve the summer problem, but would take some pressure off of rental prices for 9-10 months of the year.

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 11:03

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Tom CT

If the first responders, teachers and health care workers can’t afford to live in any Vineyard town then what happens. So your house burns down because there’d aren’t enough local volunteers to man the fire department or you need an ambulance but EMTs can’t afford to live near the ambulance so response time is longer and you or a loved one dies.
There is an underlying tone of greed that pervades the island from the realtor community that runs on through the landlords and property owners, both off island and on island owners. Everyone needs to look in the mirror and ask are they part of the problem or more positively how can I be part of the solution?

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 13:29

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Jim Edgartown

Very simple take a small piece of the State Forest, Land bank other protected land And build some affordable housing...

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 13:33

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NBGVL Oak Bluffs

If anyone thinks for a minute it’s bad here, they should check out prices in Boston and the surrounding towns. This ongoing narrative is really not helping anyone. There are a lot of resort communities all over the world too that have become more and more expensive over time. This isn’t some unjust island issue.

I have a 2000 sq ft house on the island that cost a fraction of my tiny one bedroom condo in Boston.

Mark Edgartown

Agree, real estate in high demand areas is expensive. A 1,200 square foot two bedroom in lower Manhattan is close to $1.7million on average and that does not include monthly property tax and maintenance fees.

M VH

What's your point? On the Vineyard, if the prices continue to climb and the middle class can't afford to live here and provide services, and the tourists stop coming.... we're up a creek. Boston has the luxury of having surrounding towns with easier accessibility than needing to ferry back and forth daily.

Submitted by Anonymous (not verified) on Fri, 02/05/2021 - 19:38

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From another State VH

Long story short. I only rent out the MV house in the high season. I honestly thought about renting out the MV house until MV friends told me to absolutely NOT rent it in the off season to year-rounders. They told me horror stories about how they might not leave the premises for the summer and will not respect the property. I heard it from the horse’s mouth and don’t rent in the off season. Sad, huh.....

Submitted by Anonymous (not verified) on Sat, 02/06/2021 - 12:15

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Ken Edg.

You know whats worse? The state of island sanitation. Before anything can be considered we need to get a handle on our basic needs. Everyone needs sanitation and we have no plan. I think this should be priority no. 1.

Submitted by Anonymous (not verified) on Sat, 02/06/2021 - 22:27

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Ed Edgartown

This is not a new problem. What is going on with the town of Edgartown and the affordable housing complex across from the old dump and current boat storage off Meshaket Road? It has been “in the works” for far too long. It may be a better use of journalistic resources to publicly examine what the towns are doing with land they have allegedly allocated for affordable housing. I live near the Edgartown lot and welcome year round neighbors!

Submitted by Anonymous (not verified) on Sun, 02/07/2021 - 08:49

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AB OB

I understand the feeling that why should people today get a hand out when I scrimped and saved in the 60s and 70s.It would be nice if someone did a study comparing wages and house prices then and now. My husband built our house in 1986. Today, we couldn't afford to buy it or build it. What is the square foot price to build a house now, let alone buy the land. That's the comparison we need to see. I bought a small Audi in 1970, I wouldn't buy one today.

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