Boston homeowners are bracing for a significant jump in their property tax bills as the city’s commercial real estate market continues to falter. A recent study by the Boston Policy Institute highlights that more than $1 billion of the city’s tax burden will likely shift onto residential parcels over the next five years, a direct consequence of sustained declines in office-building assessments
Since 2019, the assessed value of many Boston office towers has plunged by roughly 50 percent, driven by rising vacancy rates—now at a record 14.2 percent—and a near-complete halt in new commercial development. This downturn is exceptional even outside of typical recessionary periods, underscoring the profound impact of remote work trends and changing demand for office space
Boston relies on commercial property taxes for more than one-third of its operating budget—more than any other major U.S. city. As those revenues shrink, the gap must be filled elsewhere. With limited appetite for cutting essential public services, city officials are increasingly eyeing residential property owners to shoulder the shortfall
The effects are already rippling through neighborhoods. Some homeowners have seen their annual tax obligations more than double. Sixty-year-old resident Paulette Durrett, for example, faces a bill that has jumped from $7,000 to over $15,000, forcing difficult choices about household budgets and long-term living arrangements WSJ.
In response, Mayor Michelle Wu has proposed legislation to shift more of the burden back onto commercial landlords, but the real estate industry—and some state lawmakers—oppose raising already struggling office tax rates. Earlier this year, the Massachusetts Senate delayed her initial proposal, prompting the mayor to refine her plan to include targeted tax rebates for low-income seniors and a phased approach to ensure no more than one-fifth of homeowners face extreme hikes Axios.
Looking ahead, experts warn that without structural reform—such as reassessment relief, tax-rate recalibration, or incentives for adaptive reuse of vacant offices—residential taxpayers will continue to bear the brunt of market shifts. The Boston Policy Institute’s report cautions that, if current trends persist, the $1 billion residential tax increase could materialize sooner and grow larger, posing a lasting challenge for city budgets and homeowners alike.