I want to propose a slightly different way of thinking about, understanding, and discussing zoning questions. Let’s talk in terms of  development potential. 

At the slight risk of over-simplification, zoning comprises the regulations that limit the size (and shape) of buildings and the uses that are allowed on your property. In the context of residential zoning, it boils down to how big a house you can build and whether or not you can have multiple families living in separate units in that house.

Zoning contributes to development potential, but does not — on its own — determine development potential. Development potential is the intersection of zoning and demand. Let me illustrate with a house in one of my favorite neighborhoods: Truman Rd., off Parker St., south of Boylston St. (Route 9).

| Newton MA News and Politics Blog170 Truman Road is an 8,325 s.f. lot. Under current zoning, it’s legal to build a single-family home up to 3,500 or so on the lot. When the original house was built in 1953, the rules were a little different, but the lot would allow a much larger house than the 1,164 s.f. home that the developer built as part of a 40-unit development of similarly small Capes and ranches on similarly sized lots.

The original Truman Rd. homes illustrate how zoning alone is not development potential. The zoning applicable in the 1950s allowed much larger homes, but the developer built to meet the market, which, presumably, would not have absorbed the 40 3,000 to 4,000+ s.f. homes the they could legally have built.

The neighborhood had latent development potential, waiting for market demand for larger homes. When the city’s supply of large homes started to fall woefully short of market demand, it became worth it to tap that latent development potential. Now, a few of the homes in the development have been torn down and replaced with much larger homes — McMansions. 170 Truman Rd. was sold to a developer in late 2019 and was recently torn down. Construction is underway on a 2,800 s.f. home.

| Newton MA News and Politics BlogSame lot. Same zoning (more or less). A developer in 1953 and again in 2019. Why a little ranch in the 50’s and a big colonial now? We have an acute housing shortage in the region and demand is high. A big house will sell. (One might also ask, why not a bigger house now? The developer has left something like 10% of the space permitted by zoning on the table. Answer: there may be dwindling demand for 3,000 s.f.+ homes that fill out the lot. Again, zoning is not development potential.) 

170 Truman Rd. is a perfect example of what folks refer to as “naturally affordable” but isn’t. It was only affordable when demand was low. Actually, our zoning makes it and like properties “naturally developable” when demand is high. And, small houses on large lots are especially vulnerable, because of the big difference between their current condition and their development potential. 170 Truman Rd. is not the first Truman Rd. home to be replaced by one more than double in size. And, I suspect it won’t be the last.

What’s happening on Truman Rd. and everywhere else there are teardowns is that the demand to live in Newton has gotten so high that the value of the land and the potential to build a big home on it, is greater than the value of the land with an existing small home and the cost to demolish the small home.

Development potential is a useful way to think about what some folks consider our other big zoning problem*: by-right conversion of modest single- and two-family homes in multi-residence districts to luxury condominiums — McMiniums©. These properties are big lots (required under the zoning) with the higher floor-area ratios (FAR) of multi-family districts. Zoning in multi-residence districts, in other words, has always allowed larger, two-family homes. Why have greedy developers only relatively recently exploited the full measure of the zoning? At the time they were built, the market only supported modest homes. The development potential was low. Now, there’s huge regional demand for more housing, including high-end housing. The development potential is high. And, if the opportunity exists, it’s generally easier to make money building high-end.

Development potential is also a useful way to think about solutions to the problem of disappearing modest homes. When RightSize*-endorsed councilors and candidates, like Councilor Pam Wright, pledge to reduce or eliminate the teardown-to-McMansion/-McMinium cycle, they want to reduce the development potential of lots with modest homes. Since they cannot eliminate the regional housing demand, they can only change the zoning. But, zoning reform that limits development potential to preserve modest homes has a cost: it will reduce the value of homeowners’ investments in their homes, though not enough to actually preserve these physically modest homes as financially modest, because there are precious few financially modest homes left in Newton. Nobody wins.

Development potential is also a useful way to think about the RightSize*-endorsed councilors and candidates, again like Councilor Wright, who fear that expanding multi-family housing will only result in more McMiniums©. Candidates like Councilor Wright ignore that the same  market forces that would create development potential for large, expensive condominiums are also activating the existing development potential of the same lot for an expensive single-family home. One way or the other, the lot’s likely going to end up on the high end.

And, candidates like Councilor Wright ignore the ability of the City Council to expand multi-family zoning in a way that transforms the development potential of the lots to provide more modest homes without reducing homeowners’ investments: reasonable regulation, particularly maximum unit size. The details need to be worked out, but we can figure out a formula that reduces the size of a single-family home that can be built on a lot, which would reduce the incentive to build McMansions, and creates an incentive to build multiple modest units in a duplex or triplex, which would maintain the value of the homeowner’s investment. 

If you look at the problem through the lens of development potential, we have three choices, in the face of our chronic and worsening housing shortage across the region:

  • Leave everything as is and watch homeowner after homeowner realize the development potential of their lots and build McMansions and McMiniums (or sell at a premium to a developer who will)
  • Change zoning to reduce the development potential without offering an alternative, which would reduce homeowners’ investment
  • Change zoning to transform the development potential and create incentives for the kinds of modest homes we need more of in Newton while preserving homeowners’ investment

And, of course, choices one and two do nothing to address the region’s chronic housing shortage.

At least one of the RightSize* Newton endorsees gets it. There seems to be a consensus or near consensus on the City Council that we need to add more multi-family housing around our village centers. About that likelihood, Councilor Emily Norton writes on her campaign web site:

[W]here we do allow for more density, for example near transit, we should require that new units be compact, because simply by virtue of a smaller size, they will be more affordable.

In other words, don’t just increase the development potential, transform it to serve our larger housing goals. The same statement could read:

Where we do allow for more density, anywhere we decide to upzone from single-family zoning, we should require that the new units be compact, because simply by virtue of a smaller size, they will be more affordable.

Councilor Norton’s understanding of the City Council’s ability to manage development potential stands in stark contrast to Councilor Wright’s assertion that multi-family zoning will lead inevitably to McMiniums**.  Councilor Norton’s understanding of the City Council’s ability to manage development potential is also consistent with the Planning Department’s August 2020 draft Zoning Ordinance, which limited the FAR of by-right two-family homes in current single-residence districts, when compared to same size lots in multi-residence districts and had very strict dimensional limits for proposed multi-family conversions. And, of course, the August 2020 draft was also a draft, a starting point for discussions, discussions in which Councilor Wright and others could have advocated for further limits rather than spreading unfounded alarm about the unstoppable threat of overdevelopment.

Finally, development potential addresses the role developers should play in our housing future. If there’s development potential, developers will exploit it. Developers just gonna develop. So, let’s create development potential that yields the housing we want. 

Note: One of the cruel ironies of those who want to maintain Newton as it is: early Twentieth-Century Newtonians built a regulatory scheme that makes it extremely difficult, in this century, to maintain the Newton those Twentieth-Century Newtonians enjoyed.

* Housing advocates, like your humble scribe, consider the biggest problem with our zoning that it’s illegal to build the multi-family homes we need to address the housing shortage, address climate change, provide housing choices across a spectrum of households and household incomes, and start to reverse racial discrimination in land use.