Friday, April 2, 2021

Unintended 2

If you're able to do your job from a laptop, you probably didn't lose income during the pandemic lockdowns the way so many others - anybody who had to be there in person - did. You worked through the last year at home. For a lot of you, this looks to become the new normal.

Big cities were hit hard. Without tens of thousands of workers coming into central business districts, small shops that used to serve them won't re-start. Demand for big city real estate declined. The aggregate market value of Manhattan's large real estate management firms dropped by $6.5 billion. Big companies might need maybe half the office space when their employees only come in a couple of times per week.

Manhattan's economy was sustained by 1.6 million commuters every day. About 90% of its office workers are still working remotely. Because rents and occupancy are down, the city has lost tax revenue (an expected $5 billion deficit next year). But don't worry, we're all going to help them out with taxpayer money. NYC will receive almost $6 billion from the federal stimulus package, plus another $4 billion for their public schools.

from AEI 

from NYT

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