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    The Pandemic Flight of Wealthy New Yorkers Was a Once-in-a-Century Shock

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    New tax data reveal a steep population loss in 2020, toward the start of the pandemic. The exodus was temporary, but how much of its effects could be permanent?When roughly 300,000 New York City residents left during the early part of the pandemic, officials described the exodus as a once-in-a-century shock to the city’s population.Now, new data from the Internal Revenue Service shows that the residents who moved to other states by the time they filed their 2019 taxes collectively reported $21 billion in total income, substantially more than those who departed in any prior year on record. The IRS said the data captured filings received in 2020 and as late as July 2021.Many new or returning residents have since moved in. But the total income of those who had initially left was double the average amount of those who had departed over the previous decade, a potential loss that could have long-term effects on a city that relies heavily on its wealthiest residents to support schools, law enforcement and other public services.The sheer number of people who left in such a short period raises uncertainty about New York City’s competitiveness and economic stability. The top 1 percent of earners, who make more than $804,000 a year, contributed 41 percent of the city’s personal income taxes in 2019.About one-third of the people who left moved from Manhattan, and had an average income of $214,300. No other large American county had a similar exodus of wealth.Early in the pandemic, Sam Williamson, 51, a white-collar defense lawyer living on the Upper West Side of Manhattan, first relocated to Utah, then to Long Island. After a return to the city, he and his family permanently moved to Miami last year when his law firm opened an office there.“I love New York City, but it’s been a challenging time,” Mr. Williamson said. “I didn’t feel like the city handled the pandemic very well.”The average income of city residents who moved out of state was 24 percent higher than of those who moved the year prior, according to a New York Times analysis of federal tax returns that were due in 2020. It was the biggest one-year income increase among people who left the city for other states in at least a decade.The tax data is in line with the most recent Census Bureau estimates, which showed that in the first year of the pandemic, the number of New York City residents who left was more than triple the typical annual outflow before the pandemic. International immigration, a key source of growth in New York, plummeted to one-fourth the level prepandemic. And the death rate surged, as approximately 17,000 more residents died than in a typical year.All of this led to a loss of about 337,000 people in New York City between April 2020 and June 2021, according to census estimates, a startling drop after the city’s population reached 8.8 million residents, a record high, in early 2020.New York City’s official demographers say that the pandemic was a blip in the city’s long-term population growth and that migration trends have returned to prepandemic levels, pointing to indicators like change-of-address requests and soaring rents that suggest people are flooding back.But, they said, it is too soon to conclude when the population that was lost will be completely replaced.And other indicators suggest flight from the city may be continuing. Public school enrollment this year is down 6.4 percent compared with before the pandemic, according to New York City Department of Education data, and private school enrollment decreased by 3 percent, according to state data, potentially signaling a reduction in the number of families that could hurt the city’s ability to foster a diverse work force.“All of these are underlying trends that are concerning,” said Andrew Rein, president of the Citizens Budget Commission, a nonpartisan fiscal watchdog. “We don’t know what this means permanently, but things have shifted in a way that should give anybody looking at this some serious pause.”In the years before 2019, the people who left and the people who stayed in New York City had similar average incomes, the IRS data showed. But during the pandemic, the residents who moved had average incomes that were 28 percent higher than the residents who stayed.Still, New York City collected more tax revenue in both 2020 and 2021 than in 2019, thanks in part to at least $16 billion in federal pandemic aid.The outlook for this year has become much less certain as the stock market has plummeted in recent months and certain forms of federal aid, like stimulus checks and expanded unemployment benefits, have ended.The city’s Independent Budget Office said it was not possible to calculate the tax revenue lost from the people who had moved because some of them could be working remotely for New York-based companies and paying city income tax. In the long term, the office said, their tax status could become a major policy issue as states fight for their share of taxes from remote workers.Sophia and Charlie Blackett relocated last year to Rowayton, Conn., from Brooklyn, partly because both of their jobs in tech allowed them to permanently work from home. Ms. Blackett, 27, had previously considered raising children in the city, but the confinement of the pandemic shifted her thinking.“I used to thrive on the hustle and bustle,” she said. Now, she said, “I think about waking up in my bed in an apartment, and I just feel a little bit anxious.”The issue has become a talking point in the governor’s race. Gov. Kathy Hochul, a moderate Democrat, said earlier this year that the steep population drop in New York State, driven by the city losses, was “an alarm bell that cannot be ignored.” Representative Tom Suozzi of Long Island, a centrist challenging her in this month’s primary, has blamed the exodus on crime, high taxes and an unaffordable cost of living.Gergana Ivanova, 28, a clothing designer and social media influencer, said her decision to move to Miami was less about taxes. The pandemic made the downsides of living in New York City more noticeable, she said, including the lack of space in her tiny Queens apartment and the trash piling up on the sidewalks. She felt less safe walking around when the streets were emptier.“It didn’t feel happy and positive like it used to,” she said.Gergana Ivanova at Margaret Pace Park in Miami, where she moved from Queens.Scott McIntyre for The New York TimesUrban planners and economists have long debated the extent to which policymakers should be concerned about the outflow of New Yorkers to other states. Some see it as a positive sign of mobility for people who start their careers in New York, making way for new arrivals to inject vibrancy into neighborhoods.In a new report published Thursday, the Department of City Planning said federal immigration levels and change-of-address data from the Postal Service show that New York City’s population trends likely returned to prepandemic levels by the second half of 2021. And deaths from Covid-19 are significantly lower than early in the pandemic.Since the 1950s, New York City has had a net loss of residents to other states, but the population still grew because the number of immigrants and new births surpassed the number of people who moved away.The pandemic spurred a flight to many of the same suburbs that have long attracted New Yorkers seeking more space, including Connecticut’s Fairfield County and New Jersey’s Bergen and Essex Counties. But it also triggered residents to leave for more far-flung destinations, including Hawaii, the Florida Keys and ski towns in Colorado, Utah and Wyoming.Charlie and Sophia Blackett moved to Rowayton, Conn., from Brooklyn.Anthony Nazario for The New York TimesThe exodus to Florida was especially robust, and not just for the retiree crowd. In 2020, New York City had a net loss of nearly 21,000 residents to Florida, IRS data showed, almost double the average annual net loss from before the pandemic.The pandemic accelerated the relocation of several New York-based financial firms to new offices or headquarters in Florida. Many of them have landed in Palm Beach, Fla., including the hedge fund Elliott Management, whose co-chief executive, Jonathan Pollock, is now a full-time Florida resident, according to records obtained by The New York Times.The Manhattan residents who moved to Palm Beach County had an average income of $728,351, IRS data showed.Many New Yorkers also moved because they lost their jobs in the industries hardest hit by the pandemic. In New York City, the unemployment rate is almost double the nation’s, in part because the city still has at least 61,000 fewer leisure and hospitality jobs than before the pandemic, according to the most recent jobs report.Zak Jacoby was the general manager of a bar on the Lower East Side when the pandemic hit. Throughout 2020, his employment status fluctuated with the city’s changing indoor dining rules, a stressful period that put him on and off unemployment benefits.Mr. Jacoby, 37, flew to Miami in January 2021 to see a friend — and decided to stay permanently after getting a job offer at a local restaurant group. If there was another virus surge, he said, the state would be less likely to shut down businesses, giving him more job security.“My mind-set was, Florida’s more lenient on Covid, and there’s going to be less regulation,” he said.During his first six months in office, Mayor Eric Adams visited cities like Miami and Los Angeles as part of what he said were efforts to lure businesses and residents back to New York.Jonathan Koplovitz, 53, an executive at an automotive engineering and design start-up, is among the residents who came back.As the virus began sweeping through New York, Mr. Koplovitz and his family moved from their apartment in Manhattan’s Chelsea neighborhood to Aspen, Colo., the upscale ski resort town. Expecting to stay permanently, they bought a home about a mile from the ski lifts, where his two teenage sons finished the rest of the school year with virtual classes.But on a trip back to New York, he found the city to be far more vibrant than the darkest days of the pandemic. Once in-person schooling resumed in fall 2020, the family decided to return.“There’s no place like New York,” Mr. Koplovitz said. More

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    Warehouses Transform N.Y.C. Neighborhoods as E-Commerce Booms

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    The region is home to the largest concentration of online shoppers in the country. The facilities, key to delivering packages on time, are reshaping neighborhoods.An e-commerce boom turbocharged by the pandemic is turning the New York City region into a national warehouse capital.In just two years, Amazon has acquired more than 50 warehouses across the city and its surrounding suburbs. UPS is building a logistics facility larger than Madison Square Garden on the New Jersey waterfront near Lower Manhattan.In Brooklyn, Queens and the Bronx, 14 huge warehouses to help facilitate e-commerce operations are rising, including multistory centers previously found only in Asia.Fueled by the soaring growth of e-commerce while so many Americans have been working from home, online retailers, manufacturers and delivery companies are racing to secure warehouses in the country’s most competitive real estate market for them.Every day, more than 2.4 million packages are delivered just in New York City, an online-buying mecca in a region of 20.1 million people.The feverish activity has already transformed the landscape of city neighborhoods and rural towns, transforming Red Hook in Brooklyn into a bustling logistics hub and replacing farmland in southern New Jersey with sprawling warehouses where packages are sorted, packed and delivered, often within hours of being ordered.An Amazon grocery hub in Red Hook, Brooklyn, which has emerged as a nexus of e-commerce warehouses in New York because it offers relatively easy access to Lower Manhattan, Queens and the rest of Brooklyn.Clark Hodgin for The New York TimesJust 1.6 percent of all warehouses in New York City and only 1.3 percent in New Jersey are available for lease, according to the real estate firm JLL; only the Los Angeles area has fewer warehouse vacancies in the United States. Some companies are converting buildings never intended to be warehouses. Amazon turned a shuttered supermarket in Queens into a makeshift package hub.The soaring demand for warehouses, once the ugly duckling of the real estate industry, underscores their pivotal role in a complex global supply chain. Nationwide, developers are pouring billions of dollars into the construction of new facilities, helping lift the commercial real estate sector, which has been battered by the emptying of offices during the pandemic.But the rise of warehouses has also sparked significant opposition. While they provide jobs and can lower residential property taxes by contributing to the local tax base, people across the region say the large hubs will lead to constant flows of semi-trucks and delivery vans that will worsen pollution and traffic congestion.Understand the Supply Chain CrisisThe Origins of the Crisis: The pandemic created worldwide economic turmoil. We broke down how it happened.Explaining the Shortages: Why is this happening? When will it end? Here are some answers to your questions.A New Normal?: The chaos at ports, warehouses and retailers will probably persist through 2022, and perhaps even longer.A Key Factor in Inflation: In the U.S., inflation is hitting its highest level in decades. Supply chain issues play a big role.They have also bemoaned the loss of open land to mega facilities. In recent months, residents in the southern New Jersey township of Pilesgrove, just across the Delaware River from Wilmington, Del., protested plans for a 1.6 million square-foot warehouse — larger than Ellis Island — on former farmland.While Amazon, major retailers and logistics operators such as UPS, FedEx and DHL dominated the initial wave of warehouse deals at the start of the pandemic, interest is now coming from smaller businesses seeking greater control of their supply chain amid a global bottleneck in the movement of goods.“I’ve been doing this for 30-some-odd years, and I’ve never seen it like this,” said Rob Kossar, a vice chairman at JLL who oversees the company’s industrial division in the Northeast. “In order for tenants to secure space, they are having to negotiate leases with multiple landlords on spaces that aren’t even available. It’s insane what they are having to do.”The rising cost to lease facilities has frustrated some small business owners who cannot compete with retail and logistics giants, as well as newcomers like Tesla and Rivian, which have opened showrooms and service centers for their electric vehicles in Brooklyn warehouses. Leasing prices for warehouses in the Bronx, for instance, have jumped 22 percent since the pandemic started.Warehouse jobs are still just a fraction of New York City’s labor force, but companies are on a hiring spree. Since 2019, the number of warehouse jobs doubled to 16,500 positions in late 2021. New hires at Amazon make around $18 an hour and get starting bonuses up to $3,000. But the company has also been fighting workers at some of its warehouses, including on Staten Island, who are trying to unionize to improve working conditions.Prose employs about 150 employees at its facility in Brooklyn from where it ships products across the United States and to Canada.Clark Hodgin for The New York TimesToday, nearly everything — from cars to electronics and groceries to prescription drugs — can be ordered online and arrive in as little as a few hours. In New York City, new companies are offering 15-minute grocery delivery.And though most retail sales nationwide still happen at brick-and-mortar stores, online sales are increasing at breakneck speed, growing by 50 percent over the last five years to reach 13 percent of all retail purchases, according to the census.That surge is pummeling many retailers, especially smaller businesses, that have also had to weather the loss of customers during the pandemic.At the onset of the pandemic shoppers switched to online buying at a rate that had been expected to take a decade to reach, according to analysts.Some large retailers, such as Target and Best Buy, that have a handful of warehouses in the region lean on their stores to fulfill online orders. Wal-Mart, the nation’s largest retailer, does not have a store in New York City so it uses a warehouse in Lehigh Valley, Pa., just over the border from New Jersey, and stores in surrounding suburbs to serve city residents.Amazon is taking a different approach. Across New Jersey to the northern New York City suburbs to Long Island, Amazon is cobbling together a sprawling network of fulfillment centers, package-sorting facilities and last-mile hubs. In the city it has set up a handful of facilities in the Red Hook and Sunset Park neighborhoods of Brooklyn.Amazon’s rapid expansion is not unique to the New York area. Last September alone, Amazon said in a recent earnings call, it added another 100 facilities to its delivery network in the United States.Red Hook, a neighborhood of just under a square mile bounded by water on three sides, has become a center for warehouses in the city because it is near major roadways into population centers in other parts of Brooklyn, Lower Manhattan and Queens.The owner of Prose decided to keep all his manufacturing under one roof before the supply chain problems emerged. “It has been a great decision,” he said.Clark Hodgin for The New York TimesAt least three new warehouses have opened in the neighborhood and more could be on the horizon. UPS paid $300 million for a 12-acre property, and two developers of logistics centers spent $123 million in December to buy several industrial sites there.How the Supply Chain Crisis UnfoldedCard 1 of 9The pandemic sparked the problem. More

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    As Broadway Struggles, Governor Hochul Proposes Expanded Tax Credit

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    With Omicron complicating Broadway’s return, Gov. Kathy Hochul proposed more assistance for commercial theater, which her budget director called “critical for the economy.”As Broadway continues to reel from the economic effects of the coronavirus pandemic, Gov. Kathy Hochul is proposing to expand and extend a pandemic tax credit intended to help the commercial theater industry rebound.Ms. Hochul on Tuesday proposed budgeting $200 million for the New York City Musical and Theatrical Production Tax Credit, which provides up to $3 million per show to help defray production costs.“They were starting to recover before Omicron, and then, as you have all seen, a lot of these performance venues had to shut down again, and those venues are critical for the economy,” the state budget director, Robert Mujica, told reporters.The tax credit program, which began last year under Gov. Andrew Cuomo, was initially capped at $100 million. Early indications are that interest is high: Nearly three dozen productions have told the state they expect to apply, said Matthew Gorton, a spokesman for Empire State Development, the state’s economic development agency.The Hochul administration decided to seek to expand the tax credit program — and to extend the initial application deadline, from Dec. 31, 2022 to June 30, 2023 — as it became clear that Broadway’s recovery from its lengthy pandemic shutdown would be bumpier than expected.Shows began resuming performances last summer, and many were drawing good audiences — Ms. Hochul visited “Chicago” and “Six” in October, while Mr. Gorton saw “The Lehman Trilogy” and “To Kill a Mockingbird.”But the industry is now struggling after a spike in coronavirus cases prompted multiple cancellations over the ordinarily lucrative holiday season, and then attendance plunged. Last week, 66 percent of Broadway seats were occupied, according to the Broadway League; that’s up from 62 percent the previous week, but down from 95 percent during the comparable week before the pandemic.“Clearly, we’re not out of the woods yet,” said Jeff Daniel, who is the chairman of the Broadway League’s Government Relations Committee, as well as co-chief executive of Broadway Across America, which presents touring shows in regional markets. Mr. Daniel, still recovering from his own recent bout of Covid, welcomed the governor’s proposal, and said the League would work to urge the Legislature to approve it.“Every show we can open drives jobs and economic impact,” said Mr. Daniel, who noted the close economic relationship between Broadway and other businesses, including hotels and restaurants. “If we can maximize Broadway, we maximize tourism.”Under the program, shows can receive tax credits to cover up to 25 percent of many production expenditures, including labor. As a condition of the credit, shows must have a state-approved diversity and arts job training program, and take steps to make their productions accessible to low-income New Yorkers. More

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    Why New York City’s Jobless Rate Is Double the Rest of the Country's

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    The city has regained fewer than 6 of every 10 jobs it lost since the pandemic began, while the nation as a whole has regained more than 90 percent of lost jobs.Since the start of the year, nearly six million jobs have been added in the United States. The unemployment rate has plummeted to 4.2 percent, close to where it stood before the pandemic. But in New York City, the economy appears to be in a rut.After gaining 350,000 jobs in the last months of 2020, employment has slowed considerably this year, with just 187,000 jobs added since March. The city’s unemployment rate of 9.4 percent is more than double the national average, and its decline in recent months was largely caused by people dropping out of the labor force.From the start of the pandemic, no other large American city has been hit as hard as New York, or has struggled as much to replenish its labor force. Nearly a million people lost their jobs in the early months of the pandemic, and thousands of businesses closed.As the city plunged into its worst financial crisis since the Great Depression, the unemployment rate skyrocketed, peaking in June 2020 at 20 percent. Nearly every industry — from construction to finance to social services — has fewer people employed now than before the pandemic swept into New York in March 2020.Nearly two years later, New York has added back a little more than half the jobs it lost, according to the state Labor Department, far less than the rest of the country, underscoring how the pandemic ravaged some of the city’s core economic engines like tourism, hospitality and retail.The protracted pandemic has shut out tourists and scared off the crush of suburbanites who filled office towers every weekday — a “double whammy,” said Andrew Rein, president of the Citizens Budget Commission, a nonprofit watchdog group. Just 8 percent of office workers were back at work five days a week in early November, according to a survey by the Partnership for New York City, a business group.Crowds are thinner at Pennsylvania Station in Midtown Manhattan with so many suburban office employees still working remotely.Yuvraj Khanna for The New York Times“Commuters and tourists consume a lot of the same stuff,” Mr. Rein said. “They consume, in a certain sense, the vibrancy of New York City.”Their absence has contributed to the loss of more than 100,000 jobs in the city’s restaurants, bars and hotels, plus nearly 60,000 additional jobs in retailing, performing arts, entertainment and recreation. The reopening of Broadway theaters and the high rate of vaccinations has provided a boost this fall that lowered the city’s official unemployment rate to 9.4 percent in October.But the rise of the Omicron variant could threaten the fledgling recovery just as the next mayor, Eric Adams, takes office in January. Mr. Adams has pledged to use the full resources of city government to reinvigorate the economy, creating a citywide jobs training and placement program.So far, the city has regained fewer than six of every 10 jobs it lost since the pandemic began in early 2020, while the nation as a whole has regained more than nine out of 10 lost jobs, said James Parrott, an economist with the Center for New York City Affairs. “It certainly looks to me like we’re going to have a much slower, much more drawn-out recovery,” Mr. Parrott said.The short but sharp pandemic recession was particularly painful for those in lower-paying service jobs: Positions in retail, restaurants and hotels help underpin the city’s economy and were the first to be cut in spring 2020. The jobs have been slow to reappear while a large share of their customers — office workers — have still not returned to the city’s business districts.The story is far different for one major industry and its employees, finance, which has thrived, with companies like JPMorgan Chase posting record revenues during the pandemic.In the two previous recessions — those that started in 2000 and 2008 — Wall Street shrank and the city lost tens of thousands of high-paying finance jobs. This time, the job losses on Wall Street have been minimal, helping tax collections to hold up as the city has continued to collect income tax from high-paid professionals who are working remotely.“Wall Street is having a banner year, and they did really well last year,” said Ana Champeny, deputy research director at the Citizens Budget Commission. “That has helped prop up the city’s income tax revenues and business tax revenues.”A strong employment rebound has yet to take hold despite an easing of pandemic-related business restrictions over the summer, the ending of expanded unemployment benefits in September and the reopening of international travel last month.An estimated 800,000 New York City residents, about 10 percent of the population, were receiving the benefits when they expired. Republican lawmakers and small business owners had blamed the benefits for discouraging people from working, though recent studies have shown that the extra payments most likely had little effect on labor shortages, which have continued after the payments ended.Before the pandemic, the tourism industry in New York City employed 283,000 people, with the majority of those jobs in Manhattan. By the end of 2020, roughly a third of those positions had been eliminated, according to the New York State comptroller’s office.Roughly a third of New York City’s 283,000 tourism positions had been eliminated by the end of 2020, though visitors have started to return in greater numbers in recent weeks.Gabby Jones for The New York TimesWhen the city locked down early last year, almost all of its tour guides were laid off, and most have not been rehired, said Patrick Casey, a board member of the Guides Association of New York City who is out of work himself.He had worked as a guide for New York Water Taxi, which operated a fleet of sightseeing boats, for more than 10 years before he was furloughed at the start of the pandemic. He had to fend for himself: Federal pandemic benefits have expired, and like many workers, he had exhausted his unemployment insurance.Mr. Casey said he had hoped to be rehired, but he gave up and started collecting Social Security when he turned 65 in early December. “It’s going to take a long time for my industry to come back,” he said.The pandemic has caused many workers to re-evaluate their own priorities, placing a greater importance on work-life balance, spending time with their families and protecting their health. It has led some workers to retire, while others are reluctant to rejoin the work force if it means taking a job that requires face-to-face interaction, economists say.Louisa Tatum, a career coach at the New York Public Library in the Bronx, said that more people with college degrees were seeking advice, and workers were more selective about what jobs they were willing to accept.While some businesses are hiring and some even have major staff shortages, many workers tell her that they are willing to wait to accept a position that pays well, has consistent hours and, in a reflection of how the pandemic has shifted priorities, offers greater flexibility for remote work.“There is a desire to work remotely and for opportunities that don’t put them at risk of anything,” Ms. Tatum said. The biggest barrier, she said, is the lack of desirable openings.For some industries in New York, the pandemic simply accelerated financial pressure that already existed. Retailers were already struggling with the rise of online shopping, and empty storefronts were adding up even on famed corridors like Madison Avenue.The apparel manufacturing business, a bedrock industry in New York a century ago that employed hundreds of thousands of people, shed more than 4,000 jobs during the pandemic, leaving just 6,100 employees in the city as of October.Taylor Grant moved back home to Alabama after being laid off from her clothing designing job and decided to stay after not being able to find a new job in New York.Julie Bennett for The New York TimesTaylor Grant was among those who lost a job in the apparel manufacturing trade. Ms. Grant, 25, accepted a job in early 2019 as a clothing designer at HMS Productions, a designer and manufacturer of women’s clothes sold at shops like TJ Maxx and Marshalls. Her office was in the garment district, the once booming textile neighborhood in Midtown Manhattan.Ms. Grant said she had survived rounds of layoffs in spring 2020 and had worked remotely for a couple of months in Dothan, Ala., her hometown. She lost her job that summer.Ms. Grant said she applied for a handful of jobs in the apparel business in New York through the rest of 2020, hoping to return while she still had an apartment in the city. Not one company responded, so she stopped looking. She now works as a manager at a women’s boutique started by her mother, Frou Frou Frocks in Dothan, and has helped increase its online sales and social media presence.“I definitely thought I would be with my company for at least five years,” Ms. Grant said. “Once I realized there were no job opportunities in New York, I decided to stay in Alabama.”The Hotel and Gaming Trades Council, a union that represents more than 30,000 hotel workers in New York, still has thousands of members who have been out of work for nearly two years. The outlook is so bleak that union officials have been counseling members on how to find work in other fields, even nonunion jobs. But replacing jobs that paid $35 an hour and provided free family health care is a tall order.“We have people waiting in line and anxious to go back to work,” said Rich Maroko, president of the union. “They’re having difficulty finding full-time work.”Kazi M. Hossain, 59, had served drinks at Bar Seine in the Hôtel Plaza Athénée in Manhattan for nearly 35 years when the pandemic forced the hotel to close in March 2020. It has never reopened, leaving Mr. Hossain without a full-time job for the first time since the mid-1970s.He has supported his family in Queens by taking on part-time work and borrowing $100,000 from his retirement savings. “If the hotel opens in the next three months, I could survive,” Mr. Hossain said. More

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    Charles R. Morris, Iconoclastic Author on Economics, Dies at 82

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    Resisting ideological labels, experienced in government and banking, he critiqued policymakers’ “good intentions” and the costs of health care and forecast the 2008 financial crisis.Charles R. Morris, a former government official, banker and self-taught historian of economics who as a prolific, iconoclastic author challenged conventional political and economic pieties, died on Monday in Hampton, N.H. He was 82.The cause was complications of dementia, his daughter, Kathleen Morris, said.Mr. Morris wrote his signature first book, “The Cost of Good Intentions: New York City and the Liberal Experiment” (1980), after serving as director of welfare programs under Mayor John V. Lindsay and as secretary of social and health services in Washington State.The book was a trenchant Emperor’s New Clothes analysis of how the Lindsay administration’s unfettered investment in social welfare programs to ward off civil unrest had delivered the city to the brink of bankruptcy, and it pigeonholed Mr. Morris as a neoconservative.But as a law school graduate with no formal training in economics, he defied facile labeling.While his 15 nonfiction books often revisited well-trodden topics — including the Great Depression, the nation’s tycoons, the cost of health care, the Cold War arms race and the political evolution of the Roman Catholic church — he injected them with revealing details, provocative insights and fluid narratives.“The Cost of Good Intentions” (1981) was less a screed about liberal profligacy as it was an expression of disappointment that benevolent officials had become wedded to programs that didn’t work. He concluded that the best and the brightest in the government, as well as complicit players on the outside, had figured that if a day of reckoning ever came, it would not be on their watch.Steven R. Weisman wrote in The New York Times Book Review that Mr. Morris, as a former city budget official and, at the time, as a vice president for international finance at Chase Manhattan Bank, was more intent on adding perspective than affixing blame.“He exonerates neither his current nor his former employer,” Mr. Weisman wrote.In the book, Mr. Morris quoted Peter Goldmark Jr., then the state budget director, as saying: “Remember the 14th century and the advent of the plague? Was it possible for those people to stand on the docks in Genoa or Venice, watch the rats pouring off the ships, and not understand?”“Yes,” Mr. Morris wrote dubiously, “it was possible.”He would also belie Thomas Carlyle’s characterization of economics as “the dismal science” by injecting tantalizing nuggets.Reviewing Mr. Morris’s “A Time of Passion: America 1960-1980” (1984) for The Times Book Review, Michael Kinsley wrote that “some of the most vivid moments in this book come when he stops the rush of history to describe incidents from his own time as a poverty-program and prison administrator.”“He truly has been ‘mugged by reality,’ in Irving Kristol’s famous definition of a neoconservative,” Mr. Kinsley added, but concluded, “Overall, his book radiates a generosity and good will that set it apart from the typically sour neoconservative creed.”Charles Richard Morris was born on Oct. 23, 1939, in Oakland, Calif., to Charles B. and Mildred (Reid) Morris. His father was a technician for a printing ink manufacturer; his mother was a homemaker.After attending Mother of the Savior Seminary in Blackwood, N.J., Mr. Morris graduated from the University of Pennsylvania with a degree in journalism in 1963. He was director of the New Jersey Office of Economic Opportunity from 1965 to 1969.He earned a degree from the university’s law school in 1972 while working for New York City government. He was recruited by Washington State on the basis of his reputation as the city’s assistant budget director and welfare director.Praising Mr. Morris’s service to the city and his proficiency as an author, Edward K. Hamilton, first deputy mayor during the Lindsay administration, said that he nonetheless differed with some of the conclusions and recommendations in “The Cost of Good Intentions.”“Many of its stated or implied remedial nostrums, even if desirable in theory, were simply infeasible in the real-world circumstances,” Mr. Hamilton said, “given the complex web of intersecting state, local and federal authorities and the politics overshadowing all of it.”Mr. Morris later served as director of the Vera Institute of Justice in London.He is survived by his wife, Beverly Gilligan Morris, along with their sons, Michael and Matthew; their daughter, Kathleen Morris; and four grandchildren. A sister, Marianne Donovan, also died on Monday. Mr. Morris lived in Hampton.Among his other books were “A Rabble of Dead Money: The Great Crash and the Global Depression: 1929-1939 (2017); “Comeback: America’s New Economic Boom” (2013); “The Sages: Warren Buffett, George Soros, Paul Volcker, and the Maelstrom of Markets” (2009); “The Trillion Dollar Meltdown” (2008); “The Surgeons: Life and Death in a Top Heart Center (2007),” which dissects the cost of care to the public and to practitioners; “American Catholic: The Saints and Sinners Who Built America’s Most Powerful Church” (1997); and “The Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J.P. Morgan Invented the American Supereconomy” (2005).Assessing “The Tycoons” in The Times Book Review, Todd G. Buchholz, a former economics adviser to President George H.W. Bush, wrote of Mr. Morris, “I admired his drive to delve into competing theories of the Great Depression, sleeves rolled up, digging evenhandedly into the muck of academic research and the tumbleweed of the Dust Bowl.”Rarely allowing himself to be typecast, Mr. Morris would debunk what he called the conservative conventional wisdom that raising the minimum wage costs jobs. He complained in the Jesuit magazine America that the nation’s existing health care system benefits the wealthiest Americans. In an interview on the business blog bobmorris.biz in 2012, he criticized graduate schools of business.“Business schools tend to focus on topics that are suitable to blackboards, so they overemphasize organization and finance,” Mr. Morris said. “Until very recently, they virtually ignored manufacturing. I think a lot of the troubles of the 1970s and 1980s, and now more recently the 2000s, can be traced pretty directly to the biases of the business schools.”In “The Trillion Dollar Meltdown: Easy Money, High Rollers and the Great Credit Crash” (2008), which won the Gerald Loeb Award for business reporting, Mr. Morris precisely predicted the collapse of the investment bank Bear Stearns and the ensuing global recession.He wrote the book in 2007, when most experts were still expressing optimism about the economy. He also appeared in the Oscar-winning documentary “Inside Job” (2010) about the 2008 financial crisis.“I think we’re heading for the mother of all crashes,” Mr. Morris wrote his publisher, Peter Osnos, the founder of Public Affairs books, early in 2007, adding, “It will happen in summer of 2008, I think.”Mr. Osnos recalled that after the book was published, “George Soros and Paul Volcker called me and asked, ‘Who is this Morris, and how did he get this so right, so early?’” More

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    Why Co-Working Spaces Are Betting on the Suburbs

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    Start-ups are betting that the pandemic has spawned a new kind of worker who wants an office space closer to home, without the long commute.Paul Doran, a health care salesman, dreads the thought of commuting back to his office in Manhattan after 19 months of working from home in Jersey City, N.J.But Mr. Doran, 33, also wants a break from overhearing his fiancée’s calls and a better place to meet with clients than the local Starbucks. So he signed up for Daybase, a new company that is opening several co-working spaces, including in Hoboken, close to his apartment.“It would take a couple more zeros on the paycheck,” he said, “to get me back to commuting into Manhattan four or five days a week.”More than a year and a half ago, the coronavirus pandemic triggered an unprecedented disruption to the daily routines of office work, keeping millions of employees in their homes.Now, as the pandemic crawls into a second year, the future of work is still up in the air as many companies have embraced a hybrid model, allowing employees to split their workweek between the office and home, with little clarity about the timing of a mandatory return.In this uncertainty, a growing number of start-ups are betting that the pandemic has spawned a new kind of worker — one who will not be commuting into a central business district five days a week, but would still desire occasional office space closer to home for a distraction-free environment.In the New York City metropolitan area, home to the country’s largest office districts, co-working spaces are increasingly targeting the hundreds of thousands of office workers who live in the suburbs.Some developers who own Manhattan office buildings have scoffed at the idea that satellite workplaces will become a permanent alternative to working from home or from traditional offices, believing the hybrid model is a short-term trend.Still, the emergence of co-working spaces in residential neighborhoods underscores the uncertain prospects for New York’s office sector and its role as an economic engine that supports a vast ecosystem of restaurants, coffee shops and other businesses.The owner of Saks Fifth Avenue is partnering with WeWork to turn parts of department stores into co-working spaces. Codi, a start-up founded in Berkeley, Calif., offers private homes as flexible working spaces. Industrious, a co-working company, has an office space inside a mall in Short Hills, N.J.Daybase, created during the pandemic by a group of former WeWork executives, is opening its first co-working locations in the coming months in the New York City area — Hoboken and Westfield, N.J., as well as in Harrison, N.Y.The company is leasing vacant retail spaces, targeting densely populated neighborhoods where local residents had long prepandemic commutes and few other co-working options. Users can pay $50 for a monthly membership for access to lounge areas or, for instance, use a desk for about $10 an hour.At the heart of Daybase’s thesis is the idea that giving employees the flexibility to work from a suburban office space will ultimately attract a wider talent pool and make New York City more competitive with other cities. The ripple effects would boost the region’s economy, Daybase executives believe, part of an ongoing debate about whether New York City can fully recover only if workers return to Manhattan five days a week.“Certain real estate owners believe the only path to prosperity is to bring everybody back,” said Joel Steinhaus, a Daybase co-founder. “I don’t follow that approach. If we’re thinking about attracting talent to the region, this is more sustainable long-term.”Joel Steinhaus, co-founder of Daybase, is betting on a future in which suburban residents will spend part of their week working out of a co-working space closer to home.James Estrin/The New York TimesIn New York City, the real estate industry has been eager for workers to return to office towers. But many companies have discovered that they can operate with a smaller footprint as more jobs have become fully remote. Despite a recent uptick in demand for Manhattan office leases, the availability of office space there is still near a record high.A recent analysis by Fitch Ratings concluded that if companies were to adopt just a day and a half of remote work per week, office landlords’ profits would fall by 15 percent. At three days, income would be slashed by 30 percent.Jim Whelan, the president of the Real Estate Board of New York, a lobbying organization that represents major developers, said his staff has been required to work five days a week in the office since the summer. He believes buildings will fill up as cheaper commercial rents entice companies to lease in Manhattan again.He questioned why employees would use a co-working site on their work-from-home days and brushed off the possibility of employees working remotely part of the week after the pandemic, calling it “your alternate universe.”“Over time, we are going to work a five-day-a-week schedule,” Mr. Whelan said. “There are signs that the commercial market is picking up in the pace of leasing and in terms of how many tenants are out there looking for space.”In the New York region, about 32 percent of workers were in the office in mid-October, according to Kastle Systems, a security company that tracks employee card swipes in office buildings. The percentage has climbed steadily since Labor Day, but is still half of what employers had predicted in a June survey by Partnership for New York City, a business advocacy group.A bigger reckoning around office space may unfold in the coming years, as an estimated 30 percent of leases at large Manhattan buildings will expire by 2024, according to the New York State Comptroller’s Office. One major question, economists say, is whether larger companies will hold onto their office space to guarantee seats for all employees, no matter how many days a week they come in.New York City’s office buildings are worth an estimated $172 billion and provide about 20 percent of the city’s property tax revenues. As new leasing plummeted during the pandemic, the value of the buildings dropped by $28.6 billion, the first decline in at least 20 years, according to the New York State Comptroller’s Office, costing the city more than $850 million in property taxes.For many employees, the reluctance to return comes down to the commute.Workers in the New York region had the longest average one-way commute in the country at about 38 minutes, according to 2019 census data. About 23 percent of workers in the region commuted at least an hour each way.In June, Tom Hebner, a vice president at NeuraFlash, a consulting firm, relocated to a co-working space operated by Serendipity Labs in Ridgewood, N.J., where he lives. He said he was reminded of the benefits whenever he visits the company’s New York City office, a round trip that can take up to three hours.“I’m the only guy in the suburbs who can walk to work,” said Mr. Hebner, who works at the Ridgewood location every day with three other NeuraFlash employees.John Arenas, the chief executive of Serendipity Labs, said that when he founded the company a decade ago, his pitch for co-working spaces in the suburbs failed to take off because the corporate world strictly adhered to a five-day workweek in a central office.Since the pandemic hit, Mr. Arenas said, more than half of his revenue now comes from companies that pay for employees to work from a co-working location in the suburbs as a perk.Savills, a real estate firm, has found through surveys of its corporate clients that many employees relocated to the suburbs during the pandemic, prompting companies to seek out Manhattan office spaces near transit hubs, like Pennsylvania Station. But it has also led employees to demand more flexibility to work from home.Offering co-working spaces as a perk could risk creating a fractured work culture where employees feel disconnected from the main office and more willing to switch jobs, said Rebecca Humphrey, an executive vice president at Savills.“If you’re not a company that has a very strong sense of your culture, an approach like this can really fail,” Ms. Humphrey said.Co-working spaces in the suburbs are particularly appealing to parents who want more separation between home and work, Daybase said. In its surveys of prospective customers, the biggest complaints about working from home were the lack of space, unreliable internet and noise (leaf blower day, in particular).Daybase plans to expand nationally through franchising, seeking out spaces that are close to grocery stores, child care options and gyms, with the hopes that workers use the offices as part of a broader daily routine.Mr. Steinhaus, the Daybase co-founder, sees the company as a supplement, not a threat, to the traditional office building. In fact, Daybase itself started leasing office space this summer in a tower near Grand Central Terminal. The company organizes its meetings and happy hours around Wednesdays, the designated day when every employee comes into the office.“The office building is not going anywhere,” Mr. Steinhaus said. “We’re just going to use it differently.” More

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    Why New York's Taxi Drivers Are Protesting

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    Why New York’s Taxi Drivers Are ProtestingKaren ZraickReporting from New York City HallWhen the bubble burst, many owed much more than the medallions were worth. Families faced financial ruin; several drivers died by suicide. Then the pandemic decimated demand and posed grave health risks to drivers.Members of the New York Taxi Workers Alliance have been protesting at City Hall for a month, calling for help for drivers. The city has proposed a plan to help medallion owners restructure their loans to reduce their debt. But at a rally on Monday, a litany of drivers said it wasn’t enough. More

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    Google to Spend $2.1 Billion on Manhattan Office Building

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    The technology giant has built a sprawling campus on the West Side of Manhattan and has 12,000 employees in the city.Google announced on Tuesday that it would spend $2.1 billion to buy a sprawling Manhattan office building on the Hudson River waterfront, paying one of the largest prices in recent years for an office building in the United States and providing a jolt of optimism to a real estate industry lashed by the pandemic.The transaction comes during a precarious period for New York City’s office market, the largest in the country, as the swift embrace of remote work and the shedding of office space have presented the most serious threat to the industry in decades.While Manhattan has a glut of office space available for lease, setting record vacancy levels during the pandemic, the four firms that make up so-called Big Tech — Amazon, Apple, Google and Facebook — have staked a bullish position on the future of New York.The companies have rapidly increased their operations and work force, one of the few bright spots for New York, which has been hit harder by the pandemic’s economic toll than any other major American city.Google was already leasing but not yet occupying the 1.3 million-square-foot property, a former freight terminal near the Holland Tunnel known as St. John’s Terminal that is being renovated and expanded. The company has 12,000 corporate employees in New York City — its largest satellite offices outside its California headquarters — and said on Tuesday that it planned to hire another 2,000 workers in the city in the coming years.“New York’s energy, creativity and world-class talent are what keep us rooted here and why we’re deepening our commitment with plans to purchase St. John’s Terminal,” said Ruth Porat, the chief financial officer at Google and its parent company, Alphabet. “We look forward to continuing to grow along with this remarkable, diverse city.”Collectively, the four tech giants employ more than 22,000 people in their Manhattan offices. But their workers are unlikely to work five days a week in the office again anytime soon. Many tech companies have said they will allow employees to work remotely in a hybrid arrangement even after the pandemic ends. Google recently postponed its return-to-office plans to early 2022 because of the highly contagious Delta variant.The speed with which the economy recovers in New York City, especially Manhattan, could hinge on office buildings. Before the pandemic, they drew a million workers every day, and those workers’ spending on everything from morning coffee to business lunches to after-work Broadway shows supported thousands of businesses. The absence of those commuters has led many stores and restaurants to close in Manhattan.Companies have embraced remote work during the pandemic in ways they never had before, deciding that employees would be able to continue to work from home for some or all of the week after the pandemic eventually ends and even hiring new employees who plan to stay away from the office indefinitely.As a result, large employers like Condé Nast and JPMorgan Chase have relinquished chunks of office space, contributing to nearly 19 percent of Manhattan offices being available for rent, according to Newmark, a real estate services firm, nearly double the average rate over the last decade.About 28 percent of office workers in the New York City region, which includes parts of New Jersey, Connecticut and Pennsylvania, had returned to the office as of last week, more than double the rate from a few months ago, according to Kastle Systems, a security company that tracks employee card swipes in office buildings. The nationwide average was 33.6 percent, Kastle said.Kate Lister, the president of Global Workplace Analytics, a consulting firm advising companies on their return-to-office policies, said that hybrid work would remain a permanent feature of work culture after the pandemic.Office space is not going to disappear, but, Ms. Lister added, “The total space will come down.”Still, elected officials in New York sought to cast Google’s announcement as a sign of the city’s rebound.“This announcement from Google is yet another proof point that New York’s economy is recovering and rebuilding,” Gov. Kathy Hochul, a Democrat, said in a statement. “We are creating jobs, investing in emerging industries, lifting up New Yorkers, and together, we are writing our comeback story.”Mayor Bill de Blasio called the deal “a historic investment in New York City.” The transaction was first reported by The Wall Street Journal.When the St. John’s building opens after construction is finished in mid-2023, Google will have more than 3.1 million square feet of office space in New York, making it one of the largest leaseholders in the city.Google’s New York presence began in 2000 with a single employee in sales who worked out of a Starbucks. The company sealed its commitment to the city in 2010 with the $1.8 billion purchase of a 15-story building in Chelsea.Over the past decade, Google has rapidly increased its work force in Manhattan, hiring young engineers from the region’s universities, attracting tech workers who do not want to live in Silicon Valley and expanding its marketing and sales departments. The company has added 5,000 employees in New York since late 2018.The terminal building that will be home to Google’s new office is in Hudson Square, a neighborhood on the West Side of Manhattan between TriBeCa, Greenwich Village and SoHo. Many creative, media and tech companies have offices there, including the website builder Squarespace and the eyewear company Warby Parker. Disney has also selected the neighborhood as the site of the new headquarters for its New York office.In addition to businesses, the area has a growing residential population, after a rezoning in 2013 led to a boom in the development of new high-rise and condo buildings.In recent years, Google’s main rivals, notably Amazon and Facebook, have also invested heavily in New York City, turning a swath of the West Side, from Midtown to Lower Manhattan, into a thriving tech corridor.Facebook has acquired more than 2.2 million square feet of office space in Manhattan, most of it signed just before or during the pandemic, and has 4,000 employees in the city. Amazon, whose corporate offices are largely clustered near its competitors on the West Side of Manhattan, also bought the former Lord & Taylor building on Fifth Avenue for $1.5 billion in March 2020.And while the tech industry has been among the most amenable to remote work, the companies are still gobbling up real estate, a potential sign of their hiring pace and of a reimagining of office space.Tom Wright, president of the Regional Plan Association, a research and advocacy group, said that even though tech employees may only come into the office a few times a week, they may want more space between desks or bigger conference rooms. In particular, he said, offices need to figure out how to accommodate hybrid meetings in which some participants are in person while others are videoconferencing in from home.“During the pandemic, people assumed an across-the-board reduction in activity and demand for office space when actually it’s a much more complex equation,” Mr. Wright said.The growing footprint of Google and other tech giants in New York reflects their increasing importance to the city’s economy. Economists expect the tech sector to be a primary engine for job growth after the pandemic.In the first eight months of the pandemic, there were more job openings in technology roles than in any other occupation in New York City, according to an analysis of job postings by the Center for an Urban Future, a nonprofit research group. During that period, demand for tech workers was more than double that for finance.The tech sector has become New York City’s most reliable source of new middle- and high-wage jobs, researchers said, with average wages in tech jobs 49 percent higher than the average private-sector wage.But the presence of tech giants in the city has also been a source of tension, most notably in 2019, when Amazon abandoned plans to build a new corporate campus with 25,000 employees in Queens after facing opposition from progressive activists, elected officials and union leaders.They were angered chiefly by billions of dollars in government tax breaks and incentives offered to Amazon as a lure.Less than a year later, Amazon signed a lease for office space in Midtown Manhattan near the Hudson Yards development, the start of a multiyear expansion in New York City.Julie Samuels, the executive director of Tech:NYC, an advocacy group for the tech industry, said that despite the collapse of the Amazon deal in 2019, tech companies are still drawn to New York City because of its concentration of diverse tech talent.“I have not heard of another company either pulling back on plans to be here or deciding not to come here because of Amazon,” Ms. Samuels said. “We were worried about that.” More