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Banker & Tradesman: Jan. 20, 2025

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THE FINANCIAL SERVICES AND REAL ESTATE WEEKLY FOR MASSACHUSETTS BY THE NUMBERS

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County close-up: Essex Spotlight: North Andover

A new fund managed by Massachusetts Housing Investment Corp., led by Moddie Turay, will offer financing to preserve private but moderately-priced housing.

IN PERSON

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WEEK OF MONDAY, JANUARY 20, 2025

RESIDENTIAL REAL ESTATE BY THE NUMBERS

A triple-decker at 16 Church St. in Dorchester (left) blends in with the surrounding neighborhood building stock.

THE RULE OF THREE

7.04 percent The current average interest rate on a 30-year home loan. See Sam Minton’s story on page 3. Source: Freddie Mac

$980.26 The lowest price per square foot in this week’s Gossip Report. See page 7. Source: The Warren Group

Triple-Deckers Affordability Don’t Mix

75 percent The share of American home mortgages with an interest rate below 5 percent in July. See Sam Minton’s story on page 3. Source: ICE

AND

1,100 The number of homes per square mile in North Andover. See the Town Spotlight in By the Numbers on page 6. Source: Census Bureau

3

$11.26 The residential mil rate in North Andover. See the Town Spotlight in By the Numbers on page 6. Source: Mass. Department of Revenue

$4,527.64 The highest price per square foot in this week’s Gossip Report. See page 7. Source: The Warren Group

$875,000 The median single-family sale price in North Andover. See By the Numbers on page 7. Source: The Warren Group’s Statistics Module

Unless otherwise noted, all data is sourced from The Warren Group’s Mortgage Market Share Module, Loan Originator Module, Statistics Module and/or proprietary database. For more information please visit www.thewarrengroup.com/business/ datasolutions.

City Design Competition Highlights Cost Challenges BY STEVE ADAMS BANKER & TRADESMAN STAFF

T

riple-decker construction may have a place in spurring housing production, but recent experiments in Boston and Somerville indicate only market-rate projects are financially feasible. Somerville has seen an uptick in building permits for three-family dwellings in the past year after eliminating an

income-restricted requirement. The city now allows three-family construction in the vast majority of its residential areas. “It allows a historical structure to be built and allows it to continue to exist,” said Ward 1 City Councilor Matt McLaughlin, who represents East Somerville. “This is something pretty small for Somerville, but if every city and town in the state did this, it would go a long way to addressing the housing crisis.” In late 2023, Somerville updated zoning to allow three-family structures including triple-deckers to be built as-of right in its Neighborhood Residential 2 zoning district, which includes side

streets. It also removed a requirement that one of the three units in such projects be income-restricted. Since then, the city has received 12 applications for new construction of detached or semi-detached three-family dwellings, according to data provided by the Somerville Inspectional Services Department. Another 11 applications were submitted for conversions from two- to three-family dwellings. The elimination of the special permit requirement for three-family buildings has provided more certainty to developers to pursue projects, McLaughlin said. Continued on Page 10

Photo by Steve Adams | Banker & Tradesman Staff

This week’s Gossip Report includes three units in Boston luxury highrises. See page 7. Source: The Warren Group

2025 OUTLOOK

COMMERCIAL INTERESTS

Less Competition Among Mortgage Lenders Expected

A Toxic Reputation, Too Much Compliance in Name Only Demands Rethink

By Sam Minton | Banker & Tradesman Staff

By Scott Van Voorhis | Banker & Tradesman Columnist

Loan Rates May Stay High, but Mass. State Needs New MBTA Mortgage Lenders Are Optimistic Communities Strategy

Banking & Lending PAGE 3

Opinion PAGE 4


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