April 5, 2020
The president of the Federal Reserve Bank of Boston expects softening prices for office properties as well as single-family homes in the aftermath of the COVID-19 pandemic. In a recent online discussion with the Boston Chamber of Commerce, Boston Fed President Eric Rosengren also cited the prospect of a long-term drop in demand for office space.
“For both homes and apartments, as well as office properties, we are likely to see softening of prices, and in some markets it may be a fairly significant softening over time,” Rosengren said. “This is the kind of shock that unfortunately does get transmitted to housing markets and office markets in a significant way
Noting that most of the Boston Fed’s employees now work remotely, he added, “When we come back, the question is whether we need the same amount of office space because we found work at home may be more effective.”
Pictured: Boston Fed headquarters.
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