BARNSTABLE – Local business leaders say a luxury real estate transfer fee under consideration by the Barnstable County Assembly of Delegates could go a long way in addressing affordable housing—but with some caveats.
Cape Cod Chamber of Commerce CEO Paul Niedzwiecki spoke at the most recent Assembly meeting on the matter, where members continued to discuss the potential fee.
No number has been put forward yet, but Assembly members previously said rates could range between a half-percent and four percent on sales of over one-million dollars, or a higher amount set by towns. Delegates at the meeting focused on letting towns opt in to collect the fee.
Niedzwiecki says the Chamber supports the general idea of a fee to address workforce housing shortages, even though there isn’t a drafted proposal yet.
“We know it’s not unique to the Cape or unique to the country. But the way it hits the Cape is unique, because we are a second-homeowner community,” says Niedzwiecki.
“So, 37 percent of the housing stock on the Cape are second homes, and 12 percent of the housing stock are used as short-term rentals currently.”
He adds that over 30 percent of the Cape’s workforce commutes from over the Bourne or Sagamore Bridges.
However, Niedzwiecki says the Chamber would hope to see some additions to a potential fee.
One of their recommendations is that commercial property be exempt from the potential future fee to better support small businesses across the region.
He also said that the 1-million-dollar cutoff may be too low, as the median listing price of a single-family home in 2024 was about $900,000.
As for how the money is used, he says the Cape is largely already developed, so much of the money could instead be used to buy deed-restrictions for year-round residents, similar to the InDEED program in Vale, Colorado.
About Grady Culhane
