BOSTON — Housing construction in Boston has fallen off a cliff.

According to newly released data, Boston approved fewer housing units in 2024 than any year since 2011 — marking a 13-year low in new development. For a city in a self-declared “housing emergency,” it’s a stunning collapse. But for those trying to build here, it’s not surprising.

Developers say City Hall’s policies are the problem — from aggressive mandates to rising taxes and punishing delays.

“Building new housing in Boston was already difficult before the current administration increased the inclusionary zoning requirement and raised property taxes to pay for dubious projects,” said Chris Lehman, Co-Founder and Policy Architect of Groma Inc., a Boston-based real estate and housing firm. “If you're a market-rate renter in Boston, these costs likely account for over 25% of your rent.”

The Policy Shift That Broke the Pipeline

Until recently, Boston’s inclusionary development policy — which requires a percentage of new housing units to be set aside as “affordable” — sat at 13%. That number wasn’t universally loved by developers, but it was workable. Projects moved forward. Housing got built.

Then Mayor Wu raised it to 20%.

On paper, that sounds like a win for affordability. In practice, it’s been a deal-breaker.

The increase came just as construction costs soared, interest rates climbed, and permitting delays worsened. Developers say the combination has turned viable projects into financial dead ends. Some have walked away. Others never even submitted plans.

“You can’t mandate affordability if nothing gets built. Twenty percent of zero is still zero,” said one local housing consultant.

The real loss isn’t just luxury condos. It’s the middle-income units — the kind that never needed a subsidy but are now vanishing from the pipeline. With fewer of those coming online, rents for existing apartments keep rising. The city’s most vulnerable are being priced out, but so are teachers, nurses, and city workers.

Climate Mandates Are Adding Weight — and Costs

On top of affordability requirements, the Wu administration has layered on sweeping environmental rules that developers say further complicate the path to building.

In January 2025, Boston adopted the nation’s first Net Zero Carbon Zoning initiative. Under the new law, most new developments over 20,000 square feet or with 15 or more residential units must meet net-zero operational carbon standards from their opening day, starting July 2025. Embodied carbon reporting, strict electrification mandates, and building performance reviews have been added into the permitting process.

The city also enhanced Article 37 to require embodied carbon analyses, LEED-related sustainability checklists, and lifecycle carbon reporting for large projects.

These sustainability rules add upfront costs, increase project complexity, and extend approval timelines — compounding the burden on developers already squeezed by a 20% affordability mandate and rising financing costs. The result is fewer proposals, slower permits, and an added layer of risk in an already hostile building environment.

Workers Are Feeling It Too

The slowdown isn’t just hurting developers — it’s drying up work for the trades.

“They aren’t building as much as they used to, and we all feel it,” one union electrician told Mass Daily News.

With fewer large-scale projects breaking ground, skilled workers across the city — electricians, carpenters, plumbers — are seeing hours cut and paychecks shrink. Meanwhile, City Hall insists its housing strategy is on track.

What the Numbers Show

In 2024, the Boston Planning & Development Agency (BPDA) approved fewer new housing units than in any year since 2011. The numbers are no accident — they reflect a deliberate shift in policy, and the consequences are now on full display.

In 2023, Boston approved 7,389 residential units. One year later, that number dropped to just 3,575 — a collapse of more than 50% in the middle of an affordability crisis.

While City Hall promotes reports and roundtables, the city’s housing production has been quietly gutted. Permits havevanished. Projects have stalled. And yet officials continue to describe the system as “working.”

It’s not. And anyone looking at the numbers can see it.

Capital Is Leaving Boston

The investment community has noticed. Behind closed doors, real estate firms are shifting capital to cities like Everett, Quincy, and even Worcester — where approvals are faster, mandates are lighter, and City Hall doesn’t treat development like a punishment.

Some developers have quietly shelved projects or pulled out of Boston entirely. Others are redirecting their focus to suburban markets that still want — and allow — growth.

Rent Keeps Rising — and So Do the Punishments

While construction slows to a crawl, Boston renters are paying more than ever. According to Zumper, the median rent in Boston is now over $3,300, making it one of the most expensive rental markets in the country — with prices rivaling New York and San Francisco.

And despite a slight year-over-year increase of just 3%, that figure masks a deeper crisis: new housing isn’t being built, older units aren’t getting cheaper, and working families are being priced out of the city entirely.

Even worse, commercial property owners who challenge their tax assessments appear to be facing punitive reassessments. The Pioneer New England Legal Foundation (PNELF) says Boston’s Assessing Department has been quietly increasing valuations on properties under appeal, using internal “ATB dispute” flags to override normal review procedures.

Banker & Tradesman reports that these reassessments — often in the hundreds of thousands — are being added to owners’ annual tax bills without public disclosure.

PNELF President Frank J. Bailey, a retired federal judge, says the city is “punishing people for seeking redress through lawful channels.” Legal experts warn the practice may violate basic due-process protections — and drive costs even higher for tenants and small businesses alike.

What Is City Hall Actually Doing?

The Wu administration has rolled out websites, convened working groups, hosted panels, and floated “visioning” exercises. But the one thing it hasn’t done is the one thing that matters: get housing built.

Wu campaigned on housing equity. But under her administration, permits are vanishing, rents are rising, and working families are getting squeezed out of the city entirely.

This isn’t just poor leadership — it’s a manufactured crisis.

And the people paying the price? Not the consultants. Not the nonprofits. Not the political operatives collecting fees.

It’s everyone else.