Manhattan-based remote workers are costing the city $12.4 billion annually
Per NYP
Since the start of the pandemic, many businesses have had to adapt to remote work, and despite offices opening back up, the trend of remote work has continued. A recent study by Bloomberg found that because people adapt to the WFH environment, spending in Manhattan has dropped by $12.4 billion.
Since the average worker no longer needs to go out, it was estimated that in New York, they would spend $4,661 less on meals, shopping, and entertainment around their offices. The report shares how office vacancies could result in a multibillion crisis for market.
A Mexico's Instituto Tecnologica Autonomo professor, Jose Maria Barrero, gave a statement about the effects of remote work. Barrero is also part of the WFH Research group that conducted the research along with Stanford University economist Nicholas Bloom, who all conducted the research.
Barrero: “Less spending by workers in the central areas means a lot less sales tax revenue... If you have fewer commuters, that means less revenue.”
Comptroller Brad Lander also gave another statement sharing how it was hard to find a way to maintain subways and invest in schools and other important fields. He shared that this is because of the drop in income tax being paid in New York City.
The data revealed a 45% drop in foot traffic for the eight major Manhattan office buildings compared to 2019 numbers. Mayor Eric Adams shares how the matter was concerning and how it's important to look for a solution.
Adams: "It is a real concern... We’re going to have to get to the table with all of our business leaders, our economists — and really, we can’t stumble into post-COVID.”
In September 2022, the FED did a study that found that for every 1% increase in remote work, there would be a 0.9% increase in house prices. It was noted that the shift to remote work resulted in 60% of the total increase in home prices during the pandemic.
In October of last year, 50% of CEOs said that they planned to downsize their companies. They noted that remote workers were their least priority.
See flow at unusualwhales.com/flow.
Other News:
- FED Study Found 1% Increase in Remote Work Equals 0.9% House Price Increase, Shift Attributed to 60% of the Pandemic Markup
- Over 50% of CEOs are Thinking of Downsizing—Remote Workers to be the Least Priority
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