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Economic Development

Is the Massachusetts Economy in Trouble? Inside the Population and Business Exodus

Population loss, corporate relocations, and strain across education, health care, and biotech are fueling a debate over whether the Bay State’s economic foundation is cracking.

Nathanael Strickland

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For a state built on world-class hospitals, universities, and a biotech cluster that draws talent from around the globe, 2026 has brought an uncomfortable question: is the Massachusetts economic model starting to crack?

People and companies are leaving

Massachusetts lost 33,340 net residents in the year ending July 2025, with young adults leading the departures. The exits haven’t been limited to individuals. SynQor relocated with roughly 250 jobs, Analogic moved about 500 positions out of state, and both Zipcar and Panera have shifted operations elsewhere. In January 2026 alone, ten companies eliminated a combined 905 jobs. The state is now one of only four in the country with fewer private-sector jobs than it had before the pandemic — a shortfall of roughly 24,000 jobs since January 2020.

Three pillars, all under strain at once

What makes this moment different from past slowdowns is that higher education, health care, and biotech — the three industries that have anchored the state’s economy for a generation — are all showing stress simultaneously.

Higher education: Twelve Massachusetts colleges have closed or merged over the past decade. UMass Chan Medical School’s PhD admissions fell from 73 students to just 13 in a single year, and Harvard is cutting its science PhD enrollment roughly in half.

Health care: Only six of the state’s nearly two dozen hospital systems turned a profit last year. Mass General Brigham has been managing a $250 million budget gap, while UMass Memorial lost $86 million in the first half of fiscal 2025 alone.

Biotech: Venture capital’s share of funding to Massachusetts life sciences companies has declined, the number of funded companies has dropped by 13%, and lab space built during the pandemic-era boom now sits vacant at record levels — a backdrop to the 745 biotech layoffs recorded in the first quarter of 2026 alone.

Federal policy adds pressure

Boston University economist Mark Williams has estimated that tariffs alone could eliminate nearly 80,000 Massachusetts jobs and cost the state $1 billion in tax revenue. State officials have also flagged federal funding being redirected toward other states, along with a proposed $424 million in Medicaid cuts that would hit Massachusetts hospitals directly.

The cost-of-living squeeze

Housing remains the biggest single driver of people leaving the state, compounding the pressure on employers trying to hire. A four-year degree at a private Massachusetts university now commonly exceeds $400,000 all-in, and the state has the third-highest electricity rates in the country — both of which show up in household budgets long before they show up in state economic data.

What the state is doing about it

Governor Maura Healey’s administration has rolled out a $4 billion Mass Leads Act aimed at the life sciences and technology sectors, a $400 million DRIVE Initiative, and a new Competitiveness Council, while pointing to more than 30 companies that have recently expanded in the state. House Ways and Means Chair Aaron Michlewitz has highlighted resilience in state revenue numbers as a counterpoint to the more alarming headlines.

Those efforts have run into resistance, though: a broader tax-cut package was significantly scaled back, new revenue-raising proposals didn’t survive the legislative process, and a commercial property tax proposal from Boston Mayor Michelle Wu was rejected in the Senate.

Where this leaves Massachusetts

None of this means the state’s economy is collapsing — job growth is still outpacing the national average on a monthly basis, and the “millionaires tax” continues to generate billions more than originally projected, evidence that high earners aren’t fleeing en masse. But the simultaneous strain across education, health care, and biotech, layered on top of a real (if modest) population decline, is a meaningfully different economic story than the one Massachusetts told about itself for most of the past two decades. Boston Made’s Economy desk will keep following each of these threads as new data comes in.

Founder of Boston Made, Inc., a Boston-based media and business portfolio company. I lead Boston Made's independent, hyperlocal coverage of Boston's economy, businesses, and neighborhoods, alongside a growing portfolio of Boston-rooted brands — including Boston Made Pets, where my passion for dog wearables and canine wellness lives on. I’m an avid reader and journaler who believes in reporting that's closer to home.

Economic Development

The New Atlantic Bridge: Aligning Boston’s Smart Infrastructure With King Charles III’s Urban Philosophy

From George III’s tea taxes to King Charles III’s Poundbury, what Boston and Britain can learn from each other about keeping historic streets walkable, and where smart parking and EV charging fit in.

Nathanael Strickland

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Illustrated Boston and London skylines joined by a glowing transit line with an EV parking hub between them

Two and a half centuries after Boston dumped British tea into its harbour, the conversation between Boston and Britain is about something else entirely: how to move people through old, beautiful places without letting cars take them over.

From George III to Charles III

Boston’s relationship with the British Crown began with a dispute about trade. The Townshend Acts of 1767 put duties on glass, paper and tea. The Tea Act of 1773 revived the argument over taxation without representation, and on 16 December 1773 colonists emptied 340 chests of East India Company tea into Boston Harbor. London answered with the Boston Port Act of 1774, which closed the harbour to commerce until the tea was paid for. (Massachusetts Historical Society)

The relationship today looks very different. The United Kingdom is among the largest foreign employers in Massachusetts (Global Business Alliance), and ideas now cross the Atlantic as readily as goods. One of the most interesting of those ideas concerns the street itself: who it is for, and how much of it the car should be allowed to take.

Why British towns need a different kind of mobility

Many British cities and market towns were laid out long before the car. Their streets are narrow, their centres are protected, and every surface car park or new gantry competes with the character people value. Congestion is real: INRIX’s 2025 Global Traffic Scorecard found London drivers lost 91 hours to traffic, with Bristol (64 hours), Manchester (62) and Leeds (59) close behind, and the average UK driver lost 59 hours, at a cost of about £822 each. (INRIX)

At the same time the vehicle fleet is changing. Under the UK’s zero emission vehicle mandate, 33% of new cars sold in 2026 must be zero-emission. Sales of new pure petrol and diesel cars are set to end in 2030, with hybrids allowed until 2035, although the 2030 trajectory is currently under review. (GOV.UK) By 1 July 2026 there were 121,171 public charging devices in the UK. (DfT)

The question for British towns is therefore not whether cars will change, but where they will park and charge without cluttering the streets people want to walk on.

The King’s long argument about the street

Few public figures have argued about the built environment for as long as King Charles III. As Prince of Wales he told the Royal Institute of British Architects in 1984 that a proposed National Gallery extension was “a monstrous carbuncle on the face of a much-loved and elegant friend”, and in 1989 he set out his principles in the book A Vision of Britain: human scale, local character, and places designed around people rather than traffic. (RIBA Journal)

Poundbury: the experiment

Those ideas were tested at Poundbury, an urban extension of Dorchester in Dorset built on Duchy of Cornwall land. Léon Krier was appointed masterplanner in 1988 and building began in 1993. Irregular street layouts slow traffic, every neighbourhood is designed to be within about a five-minute walk of its centre, homes sit alongside shops and workshops, and utilities run underground rather than on poles. (Institution of Civil Engineers) The Duchy has since applied similar principles at Nansledan, near Newquay.

Poundbury has its critics, and the evidence is worth taking seriously. A 2023 Centre for Cities review found that residents still rely heavily on cars: only 17% of households have no car and 55% drive to work, largely because there are not enough local jobs. (Centre for Cities) Good street design, in other words, changes how a place feels, but it does not by itself remove the car. The car still has to go somewhere.

Stewardship, not endorsement

The King has also spent decades on environmental causes, from the Sustainable Markets Initiative launched in 2020 to the Terra Carta of 2021. As monarch he has said he can no longer give his time to those causes as before, and he remains politically neutral. Nothing here suggests he endorses any company, including ours. What we take from his work is a design principle: infrastructure should serve a place quietly, not dominate it.

Smart parking as the invisible grid

That principle points to a practical conclusion. If historic streets are to stay walkable while the fleet electrifies, parking and charging need to move off the kerb and into places that are dense, safe and largely out of sight. That is the problem Boston Made is planning to work on in the UK.

Boston knows something about hiding infrastructure. The Central Artery/Tunnel Project, the Big Dig, replaced an elevated highway through downtown with tunnels, created more than 300 acres of open land including the Rose Kennedy Greenway, and, according to the state, cut vehicle hours of congestion by 62%. (Mass.gov) It was also famously expensive and late, which is its own lesson: invisible infrastructure pays off only when it is planned carefully.

Our concept combines three layers:

  • Booking and hospitality. Drivers reserve a space or EV charging slot in advance, priced in pounds, so fewer cars circle looking for a space.
  • Sensing. Pressure-sensitive flooring and cameras confirm where vehicles are and that people have walked clear before any automated equipment moves.
  • Automated storage. Caster-based guided vehicles move cars into dense storage, so a site can hold more vehicles in less space, and charging bays can be monitored for heat and isolated automatically.

The details, including the UK rules we would build around, are on our UK smart parking page.

A roadmap for working with British places

Public-private alignment

Any UK site starts with the local planning authority and, where relevant, heritage and conservation guidance. Private parking in England also runs under the industry’s Private Parking Single Code of Practice, which sets grace periods, signage standards and caps on charges, and which all existing sites must meet by 31 December 2026. We would design every site to those standards from the outset, and treat parking charges as a last resort rather than a business model.

What we would measure

We are not going to promise numbers before a single site is built. These are the outcomes we would measure and publish for each project:

  • Kerbside spaces and surface parking returned to pedestrians, trees or trade.
  • Time drivers spend searching for a space, before and after.
  • EV charging sessions delivered and the share of electricity from renewable tariffs.
  • Footfall and spending on nearby high streets.
  • Complaints and appeals as a share of visits, as a measure of fairness.

The new bridge

The first transatlantic argument about Boston was about who controlled trade. The next one can be about how two old places, each proud of its streets, make room for the future without losing what makes them worth visiting. We think the answer is infrastructure that serves quietly, and we would like to build it with British partners.

If you own or manage a car park, hotel or venue in the UK, or work in planning or mobility, talk to us. UK readers can also find prices in pounds and shipping details on our UK page.

Boston Made’s UK parking services are in development. This article reflects our plans and publicly reported facts as of September 2026; it is not legal or planning advice.

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Economic Development

Beyond Boston: New England’s $132 Billion Startup Ecosystem Is Now a Six-State Story

Nathanael Strickland

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BOSTON — Zoom out from any single funding round and a bigger picture comes into focus: New England isn’t just Boston’s startup scene anymore. It’s a six-state venture capital region that, by the latest tallies from the National Venture Capital Association, is now home to roughly 2,424 VC-backed companies, 43 unicorns — good for third nationally — and annual investment that has grown from $47.8 billion in 2015 to $132.1 billion in 2024.

Massachusetts still anchors the region, but the story increasingly runs through all six states.

Biotech’s regional gravity

Healthcare and biotech remain New England’s deepest well: the region accounts for roughly 30% of all U.S. healthcare and biotech venture investment, with $78.4 billion deployed in 2024 across 863 VC-backed companies — second nationally only to the Far West. That’s the base the rest of the ecosystem builds on, feeding talent, capital, and infrastructure into everything from enterprise AI to hard tech.

Beyond biotech: fusion, defense, and the sea

Some of the region’s most ambitious bets aren’t software at all. Commonwealth Fusion Systems, spun out of MIT, continues to be one of the most closely watched fusion-energy companies in the world, working toward commercially viable fusion power from a Massachusetts base. HavocAI is building autonomous defense vessels for a Navy and allied-forces market that’s newly hungry for unmanned maritime systems. Oxylus Energy is working on converting captured carbon directly into methanol — a bet on industrial decarbonization with a real fuel at the end of it. And AutoDive is automating aquaculture, a distinctly New England industry given a distinctly modern upgrade.

Add enterprise software and AI — New England’s third-ranked sector nationally — plus a growing defense-and-aerospace cluster and serious activity in quantum and nuclear energy, and the picture is a region making concentrated bets in categories the rest of the country is only starting to take seriously.

The states outside Massachusetts are catching up on their own terms

Rhode Island has quietly built the fastest-growing investor community in the region — its base of active VC investors has grown 4.8x since 2015, a sign that capital formation is spreading well beyond Boston and Cambridge. Connecticut now ranks second in the region for VC-backed jobs, trailing only Massachusetts, evidence that the insurance and finance capital of the region is translating into real startup employment. New Hampshire, Maine, and Vermont round out a six-state footprint that, together, supports nearly 398,000 VC-backed jobs.

Why Boston Made is watching all six states

Boston Made’s own portfolio has always been built around the idea that a strong regional economy is bigger than any one city. As New England’s venture ecosystem matures beyond a Boston-only story, the companies, talent, and capital moving through Providence, Hartford, Manchester, Portland, and Burlington are increasingly part of the same story we cover here — and increasingly part of where the next generation of New England-built companies will come from.


Boston Made, Inc. tracks the companies, capital, and industries shaping the broader New England business landscape as part of its ongoing regional coverage.

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Economic Development

State Financing Tools Remain Central to Massachusetts’ Economic Development Push

Nathanael Strickland

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Massachusetts continues to lean on a network of state financing and development programs, anchored by the Massachusetts Development Finance Agency (MassDevelopment), to support business growth, infrastructure, and job creation across the Commonwealth. MassDevelopment, the state’s quasi-public economic development agency, provides financing, real estate development, and technical assistance to businesses, nonprofits, and municipalities, and continues to serve as one of the state’s primary tools for supporting projects that traditional lenders may not fully finance on their own.

State officials have continued to frame long-term economic competitiveness as a priority through 2026, with the Healey-Driscoll administration’s economic development initiatives emphasizing what state materials describe as “powering a high-growth economy” — language used in state economic development communications to describe efforts spanning workforce development, infrastructure, and support for key industries such as life sciences, clean energy, and advanced manufacturing.

MassDevelopment’s role includes both direct financing — such as bonds and loans for qualifying projects — and support for small businesses navigating financing gaps, an area the agency has continued to highlight in outreach and educational programming aimed at smaller Massachusetts employers throughout 2026. That small-business-facing work sits alongside the agency’s larger real estate and infrastructure development projects across the state.

Beyond MassDevelopment, the state legislature has continued to consider broader economic development legislation, with the Governor’s office filing economic development bills aimed at addressing competitiveness concerns raised by business groups such as the Massachusetts Taxpayers Foundation and the Massachusetts Municipal Association. These groups have continued to weigh in on the state’s approach to taxation, permitting, and infrastructure investment as components of the Commonwealth’s broader competitiveness.

For Boston-area businesses, the practical effect of these state-level tools is most visible in specific financed projects — from small-business loans to larger real estate developments — that collectively shape the pace and geography of growth across Greater Boston and the rest of the Commonwealth.


Sources:

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