Boston is looking for a new way to get stalled housing projects moving again, with city officials proposing roughly $31.5 million in temporary property-tax relief for four developments that could bring about 1,400 new housing units to the city.
The proposal comes as high interest rates, construction costs and difficult financing conditions continue to make larger residential projects harder to build. City officials say the goal is to help projects that are already approved but remain financially difficult to move into construction.
The four developments are located in Charlestown, Allston and Brighton. Together, they would include about 185 income-restricted units and create an estimated 1,582 construction jobs. The projects include One Mystic Avenue, 22-24 Pratt Street, 83 Birmingham Parkway and Building D at Allston Yards.
Helping Projects Cross the Finish Line
Boston officials say the tax incentives are being targeted toward developments that are close to being financially viable but have been held back by current market conditions. The city initially identified dozens of potentially eligible projects before narrowing the program to a smaller group.
Under the proposed structure, developers would continue paying existing property taxes during construction. Once projects are completed and reassessed at their higher values, they could receive temporary tax relief through either a five-year discount or a longer phase-in of the increased tax bill.
For the Boston housing market, the strategy reflects a growing challenge: having approved housing projects does not necessarily mean those homes will actually get built. When financing and construction costs rise enough, developers can delay projects for years even when demand for housing remains strong.
The city says it is not looking to permanently reduce its tax base. Instead, officials describe the proposal as a way to defer some additional taxes in the short term so that new buildings can be completed and eventually contribute to a larger future tax base.
A Sign of the Market's Challenges
Boston's larger residential developments have been particularly affected by the current slowdown. According to city officials, only a small number of market-rate projects with more than 100 units moved forward during 2025 and 2026. Smaller projects in outer neighborhoods have continued at a healthier pace.
For developers, the proposed incentives could make the difference between continuing to wait and actually breaking ground. For Boston, the potential payoff is thousands of construction jobs, additional housing and a larger inventory of residential properties.
The proposal still needs to go through a public process, with the Boston Planning and Development Agency board expected to consider the four projects in October. If approved and successfully negotiated, construction could begin moving forward in 2027.
Boston's approach highlights a larger issue facing Massachusetts: the demand for housing remains high, but building new homes has become increasingly expensive. Whether temporary tax incentives can unlock projects that have been sitting on the sidelines will be something developers, homeowners and buyers across the region will be watching closely.
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