Boston Faces $500M Annual Budget Shortfall by 2029 Due to Plummeting Office Occupancy Rates

Boston faces over $1 billion in lost tax revenue over 5 years due to falling office property values
The city relies heavily on commercial property taxes for over a third of its revenue
Office vacancy rates have more than doubled from pre-pandemic levels due to remote work and higher interest rates
Proposed tax breaks to convert offices to housing won't offset revenue losses as residential taxes are much lower
Without increased office demand, Boston could face a $500 million annual revenue shortfall by 2029, around 10% of its budget