Politics
Boston stands by housing rules as developers cite stalled projects and financing hurdles
Mayor Michelle Wu’s administration says strict affordability and climate standards can coexist with faster construction, while developers and critics argue Boston’s requirements make projects harder to finance. The debate comes as tens of thousands of approved homes remain unbuilt, according to reporting cited at a recent forum.
Boston’s planning chief defended the city’s development standards at an Oct. 16 forum at the MIT Center for Real Estate, saying the city should not lower its requirements even as developers contend that housing projects are increasingly difficult to finance.
“It’s hard to develop here. It should be,” Chief of Planning Kairos Shen said at the forum, where he argued that maintaining high standards is part of his job.
The dispute centers in part on Boston’s inclusionary zoning rules. The share of units developers must reserve for income-restricted housing rose from 13% to 20% in October 2024. Critics say the higher requirement can weaken project finances and ultimately reduce the number of homes built. City Councilor Ed Flynn put the argument bluntly last month: “Twenty percent of zero units is zero.”
Boston says it is trying to speed construction without abandoning affordability or climate goals. A spokesperson for Wu said the administration has pursued rezoning, streamlined approvals and created financing tools, while offering targeted tax and regulatory relief for some projects. The city also said its office-to-residential conversion program has produced or placed in the pipeline 2,400 homes, and that Boston has added nearly 16,000 homes over five years.
The city said Shen’s comments reflected a commitment to development that meets standards for affordability and climate resilience, not opposition to building. New construction rules approved in 2025 require buildings to meet net-zero energy standards and prohibit fossil-fuel systems.
Developers at the forum pointed to the economics of construction. Melissa Schrock, managing director of mixed-use development at Davis Companies, said inflation has pushed building costs sharply higher, particularly for taller projects. She argued that reducing some requirements while offering incentives could help projects move forward. Her company received approval in 2023 for a proposed Allston project with 450 apartments, 93 condominiums and a 195-room hotel; it has not started construction.
Roughly 30,000 approved homes in Boston have not been built because of financial constraints, according to figures reported by Banker & Tradesman. The Wu administration has also begun offering tax breaks to selected approved projects that lack financing.
Economist Edward Stringham of Trinity College argued at the forum that Boston’s restrictions limit housing supply and contribute to higher prices. He cited Cambridge’s consideration of reducing its inclusionary requirement from 20% to 10%, and San Francisco’s reduction from 15% to 5% in July, as examples of cities changing course to encourage construction.
The city, however, says lowering standards is not the answer. Spokesperson Marcela Dwork said Boston is working with developers and neighborhood leaders to accelerate housing while protecting the city’s quality of life. The competing arguments underscore a central challenge for Boston: getting more homes built while ensuring that new development is affordable and meets the city’s climate commitments.