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New York City workers are spending $4,661 less annually near their offices: study
By
Gwynne Hogan
Published Feb 13, 2023
Modified Feb 14, 2023
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By
Gwynne Hogan
Published Feb 13, 2023
Modified Feb 14, 2023
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Manhattan commuters are spending $4,661 less around their offices per year than before the pandemic due to remote work, according to a study from WFH Research, a group that tracks trends in working arrangements.
New York City saw a greater decline in spending near the workplace than any other major U.S. city. Los Angeles followed close behind, with workers spending $4,200 less a year.
In aggregate, Manhattan workers are spending about $12 billion less on food, beverages, transportation and recreation near their offices compared to pre-pandemic levels, according to an analysis conducted by Bloomberg, which first reported on the study.
Office workers were spending 32.9% fewer days in their Manhattan offices than before the pandemic, the WFH study found.
New Yorkers reduced their spending near the workplace by $4,661 annually due to remote work.
Survey of Working Arrangements and Attitudes (SWAA)
The COVID-19 pandemic upended decades of commuter trends and made hybrid work a new reality. Cities nationwide have struggled to figure out how to lure people back into downtowns.
New York City Mayor Eric Adams has urged private-sector workers to return to their offices, and has mandated full-time, in-person work for city employees.
“At the same time, as the mayor has acknowledged, remote work is here to stay, and our city must have a real conversation on how that impacts the small businesses that have historically depended on the foot traffic from commercial districts,” said Fabien Levy, a spokesperson for Adams’ office. Adams recently has put forth an initiative to convert underutilized office space into 20,000 new apartments.
Only 52% of Manhattan workers are in their offices on an average workday, and only 9% of workers are in their offices full time, according to a study released this month from the Partnership for New York City.
Kathryn Wylde, the Partnership's president and CEO, said the WFH Research study captures a short-term reality, rather than the beginning of the end for Manhattan business districts.
She predicted the borough would evolve to incorporate more housing in downtown areas and have a greater mix of residential and commercial uses, similar to arrangements found in Tokyo.
“Remote work will be a permanent factor, but other activities will replenish the foot traffic and consumer spending,” Wylde said. “The challenge today is that the pandemic accelerated an Industrial Revolution from the service economy to the digital world. It will take a while for cities to catch up.”
A spokesperson for Comptroller Brad Lander didn’t return requests for comment right away.
This story has been updated with comment from the mayor's office.
Gwynne Hogan
Gwynne Hogan is a former Gothamist reporter.
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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