After three years of minimal increases in market rents (0 percent in 2003, 0.7 percent in 2004, 0.7 percent decrease in 2005), research for this year suggests a recovery is under way in the local rental market, thereby supporting an increase in Harvard residential housing rents.
Before setting the proposed 2006 – 07 residential housing rents (formerly known as affiliated housing), Harvard Real Estate Services (HRES) conducted extensive market research, which included an analysis of three years of market rents for more than 4,000 neighboring apartments listed with the Harvard Housing Office by non-Harvard property owners. Additionally, a study of current rents for private market apartments that are similar in size and quality to HRES units was also conducted. Given that the majority of HRES rents now include the cost of all utilities, the results of both studies indicate that HRES current rents are comparatively on the low end of the range of current market rent rates.
Proposed 2006 – 07 rents for Harvard affiliates currently living in Harvard residential housing:
The majority of current Harvard affiliate residents who choose to extend their lease for another year will either receive a rent increase of 4 percent on average, or will be charged the new market rent for their apartment, whichever rent is lower. The majority of apartment rents now include the cost of Harvard Internet service and utilities.
The proposed rents for current Harvard affiliate residents have been reviewed by the Faculty Advisory Committee on Residential Housing* and will take effect July 1, for a term of one year, when the 2006 – 07 rental season begins.
Current Harvard affiliate residents will receive an e-mail from Harvard Real Estate Services in March with instructions on extending or terminating their lease. Residents who would like additional information or help in determining their continuing rent rates for 2006 – 07 may call Harvard Real Estate Services’ Residential Leasing Office at 617-495-1459.
Proposed 2006 – 07 rents for Harvard affiliates who sign new residential housing leases:
HRES’s research for its proposed 2006-07 rents resulted in a recommendation that the overall new market rents for residential housing should increase, on average, by 6 percent, starting on July 1, 2006, for all new residents in HRES housing. In support of Harvard’s fair market rent policy, which is applied on a unit-by-unit basis, rent rates will increase for the majority of unit types and some rent rates will stay at their current levels.
As with the continuing rents, the proposed new market rents have been reviewed by the Faculty Advisory Committee on Residential Housing* and will apply to Harvard affiliates who sign new leases as of July 1, 2006.
The average increase of 6 percent will be applied to base market rents, and in most cases market rents include the cost of Harvard Internet service and all utilities (details are listed below). The cost of electricity, which is projected to grow by over 50 percent according to University Operations Services, is factored into the new market rents that include all utilities.
All revenues generated by residential housing in excess of operating expenses and debt service are used to fund capital improvements and renewal of the facilities in HRES’s existing portfolio.
Proposed increases for continuing former rent control residents:
Proposed rent increases for continuing former rent control residents who reside in Harvard’s properties will be announced in late March or early April.
Written comments on the proposed rents may be sent to the Faculty Advisory Committee on Residential Housing, c/o Harvard Real Estate Services, 7 Holyoke St. – Mezzanine Level, Cambridge, MA 02138. Comments to the committee may also be sent via e-mail to firstname.lastname@example.org. Any written comments should be submitted to either of the above addresses by Feb. 17.
The comments received will be reviewed by the Faculty Advisory Committee, which includes William Hogan, Lucius N. Littauer Professor of Public Policy and Administration, John F. Kennedy School of Government; Jerold S. Kayden, Frank Backus Williams Professor of Urban Planning and Design, Graduate School of Design; Daniel P. Schrag, professor of earth and planetary sciences, Harvard University; Howell Jackson, James S. Reid Jr. Professor of Law, Harvard Law School; and James Gray, associate vice president, Harvard Real Estate Services (chair), Harvard University.
After the comments are reviewed and considered, the final rent schedule will be published in March.
* In keeping with the University’s fair market rent policy that was established in 1983 by a faculty committee chaired by Professor Archibald Cox, the rents for residential housing are set at prevailing market rates. The original faculty committee determined that market rate pricing was the fairest method of allocating apartments and that setting rents for residential housing below market rate would be a form of financial aid, which should be determined by each individual School, not via the rent-setting process. Additionally, the cost of housing should be considered when financial aid is determined.
Different amenities available from HRES
Harvard Real Estate Services (HRES) offers a wide range of apartments with different amenities so that a Harvard affiliate (full-time graduate student, faculty member, or employee) can select an apartment that fits his or her individual budget. There are approximately 2,500 apartments, varying in style from townhouse apartments to apartments in high-rise buildings. HRES also offers various sizes to meet affiliates’ housing needs – studios, double studios, convertible one bedrooms, and one-, two-, three-, and four- bedroom apartments. Housing advisers in the Harvard Housing Office can assist Harvard affiliates who are searching for housing. Affiliates may apply for residential housing online at http://www.hres.harvard.edu/rre.htm (click on Affiliated Housing). The Harvard Housing Office also has private landlord listings accessible via the Harvard intranet, roommate opportunities, and listings of housing opportunities that exchange work for rent. For assistance, stop by the Harvard Housing Office at 7 Holyoke St., or call (617) 495-3377.
Affiliates may also access information about a variety of housing options by visiting HRES’s Housing home page at http://www.hres.harvard.edu/rre.htm.
Proposed 2006-2007 New Market Rents for New Residents July 2006 – June 2007
Rents listed below are averages; actual new market rents will be stated on lease documents
- 18 Banks/8A Mt. Auburn: (no utilities included): one bedrooms $1,369 – $1,459; two bedrooms $1,786 – $1,849.
- Beckwith Circle (all utilities included): three bedrooms $1,942 – $2,012; four bedrooms $2,387 – $2,442.
- Botanic Gardens (all utilities and Harvard Internet service included): one bedrooms $1,400 – $1,450; two bedrooms $1,840; three bedrooms $2,175.
- 472 – 474 Broadway (heat and hot water included): one bedrooms $1,411.
- 27 Everett Street (all utilities included): one bedrooms $1,384 – $1,600; three bedrooms $2,300 – $2,463.
- 29 Garden Street (all utilities and Harvard Internet service included): studios $1,167 – $1,188; double studios $1,608 – $1,681; two bedrooms $1,914 – $1,925; three bedrooms $2,300 – $2,312.
- Haskins Hall (all utilities included): studios $1,135; one bedrooms $1,348.
- Holden Green (no utilities included): one bedrooms $1,224 – $1,418; two bedrooms $1,508 – $1,648; three bedrooms $2,066.
- 2 Holyoke Street (all utilities included): one bedrooms $1,289 – $1,390.
- Kirkland Court (all utilities included): one bedrooms $1,367 – $1,477; two bedrooms $1,689 – $1,873; three bedrooms $2,296 – $2,460.
- 1306 Massachusetts Avenue (heat, hot water, and cooking gas included): studios $1,180; one bedrooms $1,408; two bedrooms $1,741.
- 65 Mt. Auburn Street (all utilities included): studios $1,225; one bedrooms $1,453 – $1,516; two bedrooms $1,786.
- Peabody Terrace (all utilities and Harvard Internet included): studios $1,115 – $1,148; one bedrooms $1,319 – $1,349; two bedrooms $1,615 – $1,645; three bedrooms $2,389.
- 8 Plympton Street (all utilities included): studios $1,150 – $1,198; one bedrooms $1,460; two bedrooms $1,820 – $1,880; three bedrooms $2,257.
- 16 Prescott Street (heat and hot water included): studios $1,100; one bedrooms $1,312 – $1,392.
- 18 Prescott Street (heat and hot water included): studios $1,100; one bedrooms $1,312.
- 20 – 20A Prescott Street (all utilities included): studios $1,170; one bedrooms $1,400 – $1,515; two bedrooms $1,820; three bedrooms $2,375 – $2,542.
- 85 – 95 Prescott Street (all utilities included): studios $1,166 – $1,209; one bedrooms $1,480.
- Shaler Lane: (no utilities included): one bedrooms $1,332; two bedrooms $1,638 – $1,711.
- Soldiers Field Park (all utilities and Harvard Internet included): studios $1,226 – $1,322; one bedrooms $1,423 – $1,549; two bedrooms $1,781 – $1,936; three bedrooms $2,360 – $2,487.
- Terry Terrace (all utilities and Harvard Internet included): studios $1,182 – $1,212; one bedrooms $1,406 – $1,501; two bedrooms $1,945.
- Harvard @ Trilogy (all utilities and Harvard Internet included): studios $1,175 – $1,265; one bedroom convertibles $1,700 – $1,800; double studios $1,900 – $2,025.
- 9 – 13A Ware Street (all utilities included): studios $1,161; one bedrooms $1,388; two bedrooms $1,711.
- 19 Ware Street (heat and hot water included): two bedrooms $2,098; three bedroom $2,253.
- One Western Avenue (all utilities and Harvard Internet included): studios $1,350; one bedrooms $1,604; two bedrooms $1,985 – $2,056; three bedrooms $2,508.
- Wood Frame Buildings, Agassiz Area: studios $1,262; one bedrooms $1,396; two bedrooms $1,928; three bedrooms $1,968; four bedrooms $2,606; five bedrooms $2,643.
- Wood Frame Buildings, Harvard Square/Mid-Cambridge Area: studios $1,071; one bedrooms $1,234; two bedrooms $1,520.
- Wood Frame Buildings, Riverside Area: one bedrooms $1,201; two bedrooms $1,613; three bedrooms $1,974.