Boston mayor announces residential conversion program for office buildings (bostonplans.org)

Article summary

The City of Boston has announced a new program to incentivize the conversion of underutilized office buildings to residential use in the downtown area. The program will offer reduced property tax rates for up to 29 years in exchange for immediate conversion to residential use. The goal is to increase the supply of housing units in the downtown area and support local businesses. The program is expected to start accepting applications in the fall and will be administered by the Boston Planning & Development Agency and other city departments.

Main themes

• housing supply and demand
• office building conversion
• property taxes and incentives
• competition and cartelization
• urban planning and development
• gentrification and affordability

What commenters say

• Building more housing supply does not necessarily lead to lower rents, as demand can still outpace supply in desirable cities.
• The concentration of property ownership can lead to a de facto cartel, allowing owners to control prices and limit competition.
• Increasing housing supply can still have positive effects, even if it does not single-handedly reverse decades-long trends of rising prices.
• The conversion of office buildings to residential use can have follow-on effects, such as increasing demand for non-residential space and lowering the supply of commercial property.
• Reducing property taxes can provide a strong incentive for office building owners to convert to residential use, but may not be enough to offset the costs of conversion.
• The use of pricing software by multiple property managers can effectively create a cartel, allowing them to control prices and limit competition.
• The relationship between supply and demand in housing markets is complex and influenced by many factors, including gentrification, global investment, and urban planning decisions.