New York City Office Attendance and Economy Update: September 2023 Insights & Trends
Explore the latest analysis on New York City's economic recovery with a focus on office attendance rates, remote work trends, and public transportation impacts as of September 2023.
Investopedia and NY1 present biweekly insights on New York City's economic pulse.
The New York City Economy Tracker, a collaborative effort between Investopedia and NY1, leverages publicly accessible data to assess the city's economic vitality across key sectors. This September 2023 edition highlights office attendance patterns and their broader implications.
New York Trails Other Major Cities in Office Return Rates
According to Kastle Systems’ Back-to-Work Barometer, New York City’s office attendance remains the lowest among the top U.S. metropolitan areas. In August 2023, only 42.6% of employees returned to offices in NYC, trailing behind Houston's 60%, Dallas's 53.6%, and Chicago's 51.2%. Los Angeles also reported sub-50% attendance at 48%. The average across the ten largest U.S. cities stands at 47.5%, significantly influenced by New York's lagging figures.
Just before Labor Day weekend, attendance in NYC dipped further to 38.2%, marking the second-lowest rate among the tracked cities, only ahead of San Jose at 36.1%. This persistent low turnout has raised concerns among city officials, including Mayor Eric Adams, who continues to advocate for increased office presence.
Hybrid and Remote Work Cemented as the New Norm
The pandemic has permanently reshaped work habits, with hybrid and remote work becoming entrenched. New York City leads in remote work adoption, with 35.5% of the average workweek spent remotely—over one percentage point above the average of the ten largest cities and eight points higher than other metropolitan areas.
Los Angeles slightly surpasses NYC in remote work at 36.2%, whereas Chicago records the lowest at 30.8%. While teleworking from third locations remains uncommon—63% of New York households reported no teleworking in early August—working from home has gained strong traction, with 12% of respondents working remotely full-time during the week.
Given these trends, New York City's office attendance is unlikely to rebound to pre-pandemic levels soon without significant shifts in corporate policies.
Public Transportation Faces Challenges Amid Low Office Attendance
Reduced office presence has strained New York's public transit systems, leading to decreased ridership and budget shortfalls. As of August 2023, Long Island Rail Road ridership remains 24% below pre-pandemic baselines, while MTA subways and Metro North railroads see roughly 30% declines. PATH trains have experienced the steepest drop, down 42%.
These trends contribute to projected budget deficits for the MTA, even after federal pandemic relief funds conclude in 2024.
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