The Winter 2026 issue of MassBenchmarks examines current conditions in the Massachusetts economy while highlighting policy challenges facing our state. This issue explores conditions in three areas. First, a comprehensive examination of commuting patterns across Massachusetts, examining the spatial connections between residence and employment. Second, a discussion of the vital role of small businesses in diverse urban neighborhoods. A concluding section provides a sobering assessment of commercial real estate challenges across all major sectors.

THE CURRENT ISSUE'S HIGHLIGHTS

Notes from the Board
Branner Stewart
A discussion by the members of the Editorial Board of MassBenchmarks.

 State of the State Economy
Mark Melnik
Although the Massachusetts economy has weathered uncertainty in 2025, all signs point to a slowdown—and increased anxiety among consumers and businesses—as dramatic federal policy changes take effect.

 Living and Working in Massachusetts: The Spatial Connections Between Residence and Employment Across the Commonwealth
Hope Bodenschatz, Eli Inkelas, and Jeffrey Thompson 
Commuting is vital to the state economy, and understanding where Massachusetts workers travel to and from provides insights into the job opportunities, housing markets, and transportation options that inform their decisions.

Supporting Small Businesses in Diverse Neighborhoods: A Vital Investment for Communities and the Economy 
Kerry Spitzer 
Diverse small businesses are the lifeblood of urban neighborhoods, but inequities in access to capital and technical assistance have posed barriers to supporting establishments that make these neighborhoods desirable places to live, work, and visit.

Endnotes: Uncertainty Reigns for Commercial Real Estate in 2025 
Tamara Small
The state's once-confident commercial real estate industry faced broad economic uncertainty in 2025, creating investment and development pauses—and opportunities—in all major sectors.