12 American cities losing out on the remote work trend

Triggered by the pandemic, the remote work trend has taken off in recent years. As of last month, 13% of all American employees were fully remote, and 28% worked in some sort of hybrid arrangement, with the rest working fully on site.

The full economic implications of this workplace evolution have yet to be realized. Even so, it’s taking a serious toll on metro areas, which rely on businesses and commuters for tax revenue. With more people logging in from home-offices and coffee shops outside the city, the bottom line of restaurants that rely on the lunchtime crowd and transportation systems serving regular commuters have taken a serious hit. According to the Census Bureau’s annual demographics report, public transportation community fell from half, from 5% of workers prepandemic to 2.5% in 2021.

The latest report from WFH Research found that three major U.S. metros, New York City, N.Y., Los Angeles, Calif. and Washington, D.C. are losing more than $4,000 annually per lost employee due to the remote work trend. Notably, these cities have high percentages of tech, finance, professional and business sector workers, which are the most prevalent industries for work-from-home arrangements.

Traditionally, many American cities were built around business as a primary driver of revenue. But as more people shift to remote work, that income source is starting to dry up. Larger cities are being hit the hardest.

Throughout the nation, local city and county administrators are pivoting quickly to address this changing economic landscape. San Francisco, for example, recently shared a future vision of its downtown and outlined how to get there. Among recommended changes described in a roadmap, administrators want to see more useable green space, safer streets, and a downtown that’s more inviting to current and prospective residents.

A complete list of the 12 American cities that are being impacted the most by shifting work habits can be found in the gallery above.