Remote work costing NYC $12.4B a year, report claims

Remote work costing NYC $12.4B a year: Report

Post-pandemic remote work is taking a major financial toll on New York City, with a new study showing that workers are spending over $4,000 less per year in and around their offices, costing the city over $12B a year.

NEW YORK - The shift to remote work has battered New York City's economy, with office workers in spending $4,661 less per person in the areas near their offices than before the pandemic began, according to a new study.

The study by WFH Research shows that New York City has seen the largest reduction in spending in the nation, which, according to a Bloomberg analysis, is costing the city a whopping $12.4B a year.

"Less spending by workers in the central areas means a lot less sales tax revenue," Jose Maria Barrero, a professor at Mexico’s Instituto Tecnologico Autonomo and a member of the WFH Research group, told Bloomberg. "If you have fewer commuters, that means less revenue."

Credit: WFH Research

A survey by Partnership for New York City in January showed that just 52% of Manhattan office workers are at their workplace on an average weekday, up from 49% in September 2022. Only 9% of employees in the city are back in the office five days a week.

Getting workers back to the office full-time has been a significant focus of Mayor Eric Adams' administration.