Posted on 02/14/2023 9:06:06 PM PST by SeekAndFind
A new report has put a price on exactly what the "work from home" trend has cost the office-laden city of Manhattan: a stunning $12 billion per year.
Working at home means that office workers who would normally be out and about are spending $12 billion less than what they spent before the pandemic, according to a new Bloomberg News study.
The average worker is spending about 30% less time in the office, meaning that spending on food and entertainment has fallen by about $4,700 per person, data from Stanford University shows.
On a per-person basis, the figure is higher than anywhere else - by more than 50%, the report shows. "People simply have not returned to full-time in-office work," NBC News wrote in a follow up.
Bloomberg wrote:
That means the average worker is spending $4,661 less per year on meals, shopping and entertainment near their offices in New York. That compares to $3,040 in San Francisco and $2,387 in Chicago. These behaviors are most entrenched in cities with longer commutes, a higher proportion of white-collar workforces and longer-lasting pandemic restrictions.
They also noted that worker attendance at most offices rose in Q4 2022, but just to the level of 43% of pre-pandemic. The number falls to just 23% on Fridays and peaks at 51% on Tuesdays.
Even food truck owners are witnessing the fall off. Sam’s Falafel owner Emad Ahmed said that he only makes about 30% of his pre-Covid revenue on Mondays and Fridays. He is stationed in Zuccotti Park.
“Monday, Friday, forget about it,” he said. “You lose money when nobody is here.”
The ultimate result for the city could be a 40% drop in office market value going forward. It could cost the city $5 billion in tax revenue, Bloomberg estimates.
Columbia University professor Stijn Van Nieuwerburgh called the trend an "urban doom loop" and said that the tax shortfall is a "big hole that will need to be plugged with new taxes, lower spending.”
Michelle Meyer, North America chief economist at Mastercard Economics Institute, told Bloomberg: “People have changed their lifestyle and their behavior. If you are working from home that day, you’re not commuting into your office, and going to the bodega next to your office.”
“New York City can’t run from home," Mayor Eric Adams commented, after directing government employees back to the office. "It's time."
Die NYC die!
L
It's not New York if people are only there three times a week.
The answer of course is to raise taxes and the bridge tolls.
I imagine that New Yorkers are still spending the same amount of money, if not even more.
Due to inflation.
The New York Peasantry are spending it on necessities, not frivolities.
And the smart ones are spending a lot on moving exspenses to get the hell out of there.
To get the he’ll out of there and repeat the same pathetic voting habits in the place they move to.
Actions have consequences.
Ever been there? Do you really want millions of Americans to suffer because of poor management? Not everyone in NY City is a liberal.
This alone should make every conservative endorse Work From Home wherever it makes sense and middle management trying to justify their continued employment be damned.
I’ve been there several times, both on vacation and for contract work.
New Yorkers endorse the poor management by default. They will not change things until *they* start hurting. As it is? DIE NYC (as we know it), DIE!
“The answer of course is to raise taxes and the bridge tolls.”
They will expand the city tax to the entire state.
Even better, with less people there, they can now get rid of the gas stoves in all the restaurants and replace them with electric. At the restaurants expense of course.
1. So just a 30% reduction in office time translated to $4600 in savings for the average office worker in NYC. That implies that a 100% reduction in office time would save them $15,333 per year - after tax.
2. Then there is the matter of them not having to live in NYC at all if they’re never going into the office. How much more would they save on rent, exorbitant taxes, etc?
3. Conclusion: All big cities are in trouble. Big expensive cities like NYC and San Fransicko are in the the most trouble. They’re doomed in fact.
All of this is just based on financial calculations. Add in a whole lot less pollution, crime, the lack of wasted time commuting, life is so much better once you get OUT of the big cities. Since the Democrats rely so much on big cities, this spells trouble for them long term.
It's the other way; work from home keeps $12 billion where workers live and saves tons of waste and pollution by reducing commutes.
This is a VERY hopeful statement. The Right needs to look at this strategically. How do we make sure city fleers turn conservative and not be manipulated by electronic media?
I don’t take that as a hopeful comment because the Republican party is nothing more than the other wing of the uniparty sh!tbird and they will ensure more tax dollars are wasted in savings NYC and any real conservative candidates are kicked in the teeth if they try to win any elections..
The real fix long term is to repeal the 17th Amendment. It removes the power that is concentrated in both political parties which are now the uniparty. So till the 17th is gone, nothing’s going to change... government’s going to grow the Deep State’s going to get stronger and essentially we will end up with a very real version of Animal Farm.
Also repeal the 16th Amendment, which will limit the ways in which people’s income can be taxed.
I have to go up to New England frequently for work. Often I pull a trailer full of gear. I completely bypass NYC by driving up to Scranton, PA and cutting east. It adds 60 miles and probably still saves an hour, and $100 in tolls each way.
I worked in NYC for many years. I moved out of that s*ithole 17 years ago. When I fly home to see friends, the only reason I ever have for going into NYC is for a Ranger game. Maybe I am talked into Little Italy or Chinatown or go to Brooklyn for Nathans and Brennan & Carr, but that’s about it.
I’ve been to Manhattan a few times. It honestly holds no appeal. A few years ago, my kids wanted to see The Lion King on Broadway with some friends. They were going to take a Megabus up from Maryland for the day. I decided to drive them up and just hang out to watch the wildlife. I probably got a better show than they did.
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