The declining value of Boston’s office buildings could mean the city will face a revenue shortfall of between $1.2 billion and $1.5 billion over the next five years.
The city’s eroding commercial tax base, driven by hybrid work practices that have left office buildings largely vacant, could leave Boston with a $1 billion-plus budget shortfall in 5 years, a scenario that may lead to higher taxes for residents.
Boston will likely lose $1.4 billion in tax revenue over the next five years, according to a report by the Boston Policy Institute. The city also could face an ongoing shortfall of about $500 million a year after that.