Rising Property Taxes in Boston: What Homeowners and Buyers Need to Know
As Boston continues to evolve post-pandemic, a major shift is underway that every homeowner, prospective buyer, and real estate investor should have on their radar: rising residential property taxes driven by a commercial real estate downturn.
What’s Happening?
Boston's commercial real estate market has taken a significant hit over the past few years. With remote work more permanent than temporary, demand for office space has plummeted. As a result, vacancy rates are at record highs (14.2%), and the value of many office buildings has dropped by more than 50% since 2019.
Why does this matter to residential homeowners? Because the city has long relied on commercial property taxes to fund its budget. As those values decline, the tax burden is beginning to shift—heavily—onto homeowners.
The Impact on Homeowners
Some Boston residents have already seen their annual property tax bills double. According to the Boston Policy Institute, if office values continue to fall, over $1 billion in tax burden could be redistributed to residential property owners over the next five years.
This trend has sparked growing concern, particularly for longtime homeowners who may be facing increased financial strain without a change in income or property value.
What the City Is Doing
Mayor Michelle Wu is advocating for legislation that would allow the city to shift more tax burden back to commercial landlords. However, the real estate industry has pushed back, arguing that further taxing a struggling sector could deepen the commercial downturn.
Why This Matters to You
For Sellers: Rising property taxes may be a compelling reason to list your home now. If you’ve been considering selling, doing so before tax assessments rise even higher could be a smart move.
For Buyers: Property taxes should be a key part of your financial planning. With potential increases ahead, understanding the full cost of homeownership—including tax projections—is essential.
For Investors: These shifting dynamics may open opportunities in certain submarkets, especially if you understand how tax pressures are influencing sales timing and pricing.
Let’s Talk Strategy
If you’re unsure how this tax shift affects your real estate goals—whether buying, selling, or holding—let’s connect. I’m here to help you navigate the market with clarity and confidence.
Reach out today to review your options and get ahead of the curve.
— Steph Crawford, Steph Crawford Group Trusted Real Estate Advisor | South End + Greater Boston
