Last updated: 6/5/24

Boston's Economy in 2024

A summary of recovery, resilience, and growth.

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Boston’s economic recovery demonstrates strong resilience and growth.

2024 Economic Summary

Employment

In 2023, Boston gained almost 10,000 jobs and returned to 2019 employment levels. In March 2024, Boston's resident unemployment rate was 3.1%, marking 19 consecutive months of unemployment rates below 3.5%, consistently remaining below the national average.

Spending

Overall average consumer spending in 2023 recovered to 96% of 2019 levels and excise revenues now exceed pre-pandemic totals. In-person spending continued its recovery in 2024, with overall spending in March 2024 2.1% higher compared to the same month in 2019.

Travel and Tourism

Year over year, monthly air travel and hotel occupancy rates in Boston were higher in 2023 than in every corresponding month in 2022.

Graphic of stats on passengers at Logan Airport

Real Estate

Residential demand in Boston remains strong and retail vacancy rates are some of the lowest in the country at 2.15%. Further, the volume of projects approved by the BPDA Board in 2023 was above average.

City of Boston Net Square Feet Approved by Year and by Use

BPDA Board Approved Residential Unites By Year

Public Safety

Boston is the safest major city in the country, with historically low levels of violent crime and homicide rates. (Data source: Boston Regional Intelligence Center)

Foot Traffic

Foot traffic in Boston has reached 94% of 2019 levels and foot traffic in Greater Downtown has recovered to more than 80% of 2019 levels. Shifting trends in how people live and work post-pandemic have led Fenway/Longwood to see substantially increased foot traffic compared to 2019.

Supplier Diversity

The City of Boston more than doubled the value of the contracts awarded to businesses owned by people of color and women during the 2023 fiscal year — awarding contracts valued at a total of $151 million, or 14 percent, to certified MWBEs — a substantial increase from 6 percent in the 2022 Fiscal Year.

Like all major cities across the U.S., Boston is settling into the post-pandemic economy.

Shifting ways of work and life:

Decreased commuter activity and softened demand for office space and the retail and transport services that cater to commuters.
That reduced demand has led to increased vacancy rates and reduced rents, but Boston’s downtown vacancy rates are some of the lowest compared to similar major cities. Boston has the 4th lowest out of 26 top cities, per CBRE research.

External Economic Forces:

High inflation and interest rates have impacted the pace of real estate sales, new housing production, and construction across the country.

Please note: "Construction Cost" is the cost of the physical labor and materials to build. "Building Cost" incorporates acquisition, entitlement and permitting processes and fees, legal fees, and other soft costs.

Boston’s ability to reinvent itself is reason for optimism.

PLAN DOWNTOWN Report

The City released the PLAN DOWNTOWN report, which lays the groundwork for a more vibrant Downtown where current and new residents, workers, and visitors can come together to live, work, and play in new and exciting ways.

Downtown Residential Conversion Incentive Pilot

The Downtown Residential Conversion Incentive Pilot brings new neighbors to the area, which has already seen 10+ buildings representing 300+ units apply for the program.

Mayor’s Office of Nightlife Economy

The new Mayor’s Office of Nightlife Economy helps activate our City for residents of all ages.

MBTA Board Seat

We secured an MBTA Board Seat to represent the City of Boston and address our transportation challenges.

SPACE grant program

Our SPACE grant program fills vacant commercial spaces and brings new vitality, jobs, and the entrepreneurial spirit to all corners of the City.

City Hall Plaza

Using our own backyard, City Hall Plaza, we're hosting exciting, large-scale events to drive foot traffic and tourist dollars to the City.

Small Business Relief Grants

The City provided $13 million in small business relief grants to 1,100 firms, launched the most expansive Legacy Business program in the nation, and invested $5 million in the City’s Main Streets groups to continue to support small business growth.

Squares + Streets

Squares + Streets is a new planning and zoning initiative that will focus on housing, public space, small businesses, arts and culture, and transportation in neighborhood centers and along main streets.