By Christy DeSmith, Harvard Staff Writer, Harvard Gazette, March 14, 2024.
A group of real estate developers pitched Boston Mayor Michelle Wu ’07, J.D. ’12, early last year on the creation of incentives for building more housing in a time of high labor costs and interest rates.
Like most coastal cities, Boston is gripped by both a housing shortage and a slowdown in construction of new apartments. In 2023, City Hall approved 7,223 new rental units but saw only 1,934 break ground. Compare that with 3,582 rental housing starts the year prior.
Property-tax reductions, the developers argued, would kickstart projects. Wu indicated interest in the idea. “But first she wanted to see some real academic analysis,” recalled Edward Glaeser, the Fred and Eleanor Glimp Professor of Economics and chair of the Department of Economics.
Wu reached out to her former professor, who offered to study the proposal with a group of Boston-area academics. All six donated their services to the endeavor, which resulted in a 47-page report. Ultimately, Wu opted against the abatements.
The Gazette caught up with Glaeser, author of 2011’s “Triumph of the City,” to learn more about the report’s findings and his other ideas for addressing the housing crisis. The interview was edited for length and clarity….
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