Week in Insights: Vacancy Taxes Would Boost Real Estate Revenue

Curated by Daniel Xu

Office real estate markets are struggling, to put it mildly. The decrease in demand for office space following the Covid 19-era shift toward remote work has left states and municipalities with serious tax deficits. In Boston alone, estimates put the lost tax revenue over the next five years at $1 billion.

The cost of a building remaining unoccupied isn’t borne solely by the property owner—it affects tax revenue and shifts societal costs onto other taxpayers. Vacant properties lose value rapidly, and with lost value comes lost property tax revenue. But tax policy can help solve ...