According to new Census Bureau data, the daytime population of cities “plummeted” as a result of the pandemic.
According to data presented at a recent US Census Bureau webinar, the shift to remote work significantly impacted commuting, consumer spending at restaurants and retail outlets, and the demand for commercial real estate.
Shifts in commuting patterns have had a significant impact on where consumers spend money, with fewer workers leading to “fewer shoppers and diners for small businesses in job hubs.”
Local coffee shops, restaurants and dry cleaners lost the business of workers en route to and from the office.
Sales of certain goods were also significantly impacted. Who needs dress shoes when you're working from home?
Job centers, or “places with many daytime jobs but fewer residents,” felt the biggest impact from the shift to remote work.
New research indicates that there has been a “shift in daytime population from traditional urban job centers to suburban and rural areas.”
Read more via US Census Bureau
According to new analysis from Bloomberg News, remote work is costing cities millions, and even billions, of dollars and “returning to pre-pandemic work schedules looks like a lost cause.”
As companies mandate workers back to the office, there are days when New York City can seem to be “bustling.” But on Mondays and Fridays, not so much.
“The in-person workweek has shrunk to three days.”
According to Bloomberg, the “economic cost of remote work” is most pronounced in New York, where “Manhattan workers are spending at least $12.4 billion less a year due to about 30% fewer days in the office.”
On average, New York City workers are spending “$4,661 less per year on meals, shopping, and entertainment near their offices in New York.” Workers in San Francisco and Chicago are spending $3,040 and $2,387 less, respectively.
For cities feeling the biggest impact, leaders are stuck figuring out how to make up for the deep financial loss.
“If less income tax is being paid in New York City, then it’s hard to figure out how to capture enough value to maintain the subways and invest in the schools and keep the city safe and clean and all the things that really matter.”
Read more via Bloomberg
