US | City Economic Forecast: Boston

City Economic Forecast - Boston March 2021 - iPad

Boston has recovered 49% of its lost jobs from the pandemic as of Q1. This was below the US recovery rate of 52%. Boston is expected to see job growth of 3.5% in 2021 and 4.7% in 2022, while GDP is expected to grow 7.5% in 2021 and 3.4% in 2022. With its dense urban core, Boston was hit hard by the pandemic and is expected to recover its lost jobs in Q4 2023. Longer term, Boston is expected to see net 2019-2025 job growth of 1.3% which ranks 35th of the top 51 metros. Its net GDP growth rate of 12% ranks 19th.

What you will learn:

  • Boston’s knowledge-based economy should outperform the US due to its life science and tech-based industries. 
  • Health care and education will also continue to play an important role in Boston’s future, with its high concentration of hospitals, universities, and medical schools.
  • Despite the expected return of job growth, Boston’s office market may not recover for a few years as the preference for remote work may prompt tenants to shrink their occupancy, especially in a high-priced market like Boston.
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