Downtown dilemma: According to a new report, downtown Boston sees between 80,000 and 125,000 fewer daily worker visits than it did before the pandemic. The district’s future relies on bringing at least some people back. But does it have to be to offices? Not entirely.
The confluence of the COVID-19 pandemic and the emergence of technology enabling effective remote work has caused a dramatic drop in demand for office space and a shift in what employers need from their physical spaces. This places the city in a precarious position as the district’s main source of economic vibrancy has seemingly evaporated, and new sources of economic vibrancy are yet to be established.
The House and Senate have both passed their own versions of a housing bond bill, known as the Affordable Homes Act, and now must reconcile the two versions in Conference Committee. Both bills propose more than $5 billion in capital authorizations, significantly more than the record $4.1 billion proposal from Governor Healey; and put forward a myriad of housing policy provisions, many of which were originally proposed by the Governor.
The standard model for the role central business districts play in cities across the country has been forever disrupted by the pandemic. Reductions to in-person work have a cascade effect on commercial real estate, public finance, and city vibrancy.
Boston is not immune from this disruption. In fact, the outsized role that commercial real estate activity has played in Boston’s economic growth over the last 20 years means that, in many ways, this threat is more pronounced here than in other areas.
On October 18th, the Healey administration unveiled a $4.1 billion housing bond bill, titled the Affordable Homes Act, which combined a new five-year capital funding plan with a variety of policy proposals intended to spur production and accelerate rehabilitation of housing stock, reduce state and local barriers to development, and assist residents in attaining stable housing.
This Brief will break down each of the major components of the bill. Specifically, it will:
