Addressing Housing Shortages through Tax Abatement

Abstract: Rising rents, often attributed to a shortage of available housing, spotlight the urgent need to accelerate housing construction, particularly in Boston and other “superstar cities” where rents have been rising acutely. This report looks at the potential efficacy and costs of one particular policy option to jump-start residential construction: incentivizing developers to build by granting them tax abatements for new construction.

Keywords: tax abatement; housing supply; Housing - Boston;

JEL Classification: H20;

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Bibliographic Information

Provider: Federal Reserve Bank of Boston

Part of Series: Current Policy Perspectives

Publication Date: 2024-03-28

Number: 2024-2