American Cities Are Starting to Thrive Again. Just Not Near Office Buildings.

While office towers sit empty and nearby businesses struggle to pay their bills, residential neighbourhoods in America’s biggest cities are bustling again.

The pandemic and remote work have done little to dent the overall appeal of cities such as New York, Chicago and Los Angeles, foot-traffic and rent data show. Instead, the pandemic has shifted the urban centre of gravity, moving away from often sterile office districts to neighbourhoods with apartments, bars and restaurants.

“We’re now back to what cities really are—they’re not containers for working,” said Richard Florida, a specialist in city planning at the University of Toronto. “They’re places for people to live and connect with others.”

At the height of the pandemic, some analysts predicted that big cities would enter a downward spiral as remote workers sought more space and cheaper places to live. That happened to some degree early on, but it didn’t last. While big metropolitan areas lost population during the first year of the pandemic, partly because of a drop in immigration from abroad, the losses have since slowed or reversed, according to a Brookings Institution analysis of census data.

Many residential neighbourhoods benefit from remote work. As people spend more time at home, they frequent local shops, gyms and restaurants, boosting the economy of places such as Brooklyn, N.Y.’s Ditmas Park and Williamsburg, as well as Washington, D.C.’s Georgetown.

Data from Placer.ai, which tracks people’s movements based on cellphone usage, shows a stark divide between office and residential districts. In Downtown Los Angeles, visitor foot traffic is 30.7% below pre pandemic levels, while Downtown Chicago’s visitor foot traffic is 27.2% lower. By contrast, in the residential areas of South Glendale and Highland Park near Los Angeles and in Chicago’s residential Logan Square neighbourhood, visitor foot traffic has been rising and is nearly back to pre pandemic levels.

Food delivery also illustrates the shift. In 2019, almost 95% of New York City corporate lunch orders came from the city’s business district, according to food-order app Grubhub. This year, it is down to around 85%. In Chicago, the central business district accounted for more than 80% of corporate lunch orders in 2019 but just over 60% this year.

Rent data, meanwhile, attests to strong demand for city living. In Manhattan’s Greenwich Village, median housing rent was 30% higher in April 2023 than in April 2019, according to Jonathan Miller, chief executive of real-estate-appraisal firm Miller Samuel. In the Brentwood neighbourhood of Los Angeles, the median rent is up 63%.

Big cities still face serious challenges. Vacant office buildings leave downtown shops and restaurants with too few customers, while falling commercial building values threaten property-tax revenues.

“The increased vibrancy of great urban neighbourhoods will never be enough to offset the decline in property-tax revenues caused by remote work and the falling values of commercial office buildings,” Florida said.

Housing shortages have pushed up rents. In the long run, replacing offices with apartments can help revitalise urban centres, but that will take time. Conversions are also often tricky and expensive. Crime is up in many places. San Francisco in particular has been slower to recover and its retail has come under pressure.

Still, anyone walking through New York’s Jackson Heights or Silver Lake in Los Angeles looking for a deserted hellscape will be disappointed.

In Manhattan, the pandemic ignited a retail renaissance in the Soho neighbourhood, with availability there now at its lowest level since 2014, according to real-estate services firm Cushman & Wakefield.

“Before the pandemic there was a disconnect between landlord expectations and what tenants could pay,” said Steven Soutendijk, executive managing director for the firm’s retail division. “Covid sort of shook that up a little bit, in a good way.”

Andrea Loscalzo, owner of the Italian restaurant Salumeria Rosi in Manhattan’s Upper West Side, said his eatery is as busy as before the pandemic. Many regulars left the neighbourhood and never returned, but young professionals in their 30s and 40s moved in to replace them, he said.

“Even as families decamp, New York’s magnetic pull on the young and the talented is now more than ever,” Florida said.

In Chicago’s central business district, retail vacancy rose to a record high of 28% last year compared with about 15% in 2019, according to Stone Real Estate, a local brokerage. Crime in the city remains a concern, and in April, Walmart said it would close four of its eight locations in Chicago after annual losses nearly doubled in five years.

The city’s residential and tourist neighbourhoods are performing considerably better. In River North, which has a mixture of residential, office and hotels, retail vacancy dropped by more than 2 percentage points, driven largely by the strength of its restaurants, said John Vance, principal at Stone Real Estate.

“The city blocked off some streets to traffic so we could have expanded outdoor dining,” Vance said. “River North feels vibrant.”

Lakeview, a neighbourhood within walking distance of Lake Michigan and Wrigley Field, is bustling with young residents, families and Cubs fans, said resident Naomi Polinsky. Its restaurants and bars were packed on a recent Saturday night.

“We walked next door to the sports bar, and there was not a single place to sit. We walked across the street to the wine bar, completely crowded,” she said.

Australia’s wealthiest donors are becoming more strategic, more ambitious and increasingly focused on creating measurable impact, according to Sydney Children’s Hospitals Foundation chief executive Kristina Keneally.

Speaking after the 2026 Gold Dinner, held last week in Sydney, Keneally said Australia was experiencing a significant shift in how major philanthropy is viewed, with large-scale giving increasingly part of conversations about leadership, legacy and social impact.

The annual Gold Dinner, now in its 29th year, brought together some of the country’s most influential business leaders, philanthropists and cultural figures, raising $75.5 million and counting in support of the Sydney Children’s Hospitals Network.

While the event has become one of Australia’s most prestigious fundraising gatherings, Keneally said its significance extends far beyond a single evening.

“Gold Dinner, the flagship event of Sydney Children’s Hospitals Foundation, represents far more than a single evening. It is a powerful demonstration of what a committed community can achieve together over 12 months,” she said.

“The strength of that community, and the trust built over nearly three decades, means people return not just for the event, but for the impact they know it delivers.”

A NEW ERA OF PHILANTHROPY

Large-scale philanthropy has long been a feature of American society, where charitable foundations and major donors often play a prominent role in funding medical research, education and social programs.

Keneally believes Australia is moving in a similar direction.

“Australia is building a stronger culture of large-scale philanthropy, but it is still evolving compared to the United States, where giving at scale is more deeply embedded and widely recognised,” she said.

She said the country’s philanthropic landscape was becoming more sophisticated as successful business leaders increasingly sought opportunities to create meaningful change through their giving.

“In Australia, while generosity has always been strong, large-scale giving has historically been less visible, but that is changing rapidly as more leaders embrace philanthropy as a powerful way to drive meaningful outcomes.”

According to Keneally, events such as the Gold Dinner are helping reshape public perceptions of philanthropy by demonstrating the tangible outcomes that major donations can achieve.

“Gold Dinner is helping to reshape how philanthropy is perceived in Australia, making it more visible, more aspirational and more connected to real-world outcomes,” she said.

WHERE THE MONEY GOES

The funds raised through Gold Dinner support clinical care, research and innovation across the Sydney Children’s Hospitals Network.

Over the past 12 months, more than $75.5 million has been raised to help fund advanced medical equipment, innovative care models and world-leading medical research. Areas of focus include precision medicine and early diagnosis, where emerging technologies are already changing how childhood illnesses are detected and treated.

Keneally said the impact is felt directly by children and families facing some of the most difficult moments of their lives.

“For children and families, this translates into very real and immediate impact. It means faster diagnoses, earlier access to life-saving treatments, and care that is more personalised and effective,” she said.

“It also ensures hospitals are equipped not just to respond to illness, but to reimagine what care can look like, giving children the best possible chance not only to survive, but to live full, healthy lives.”

BUSINESS LEADERS BACKING CHANGE

One of the defining characteristics of Gold Dinner is the calibre of its supporters.

The event has evolved into a meeting point for influential leaders from business, culture and philanthropy, many of whom see charitable giving as an extension of their professional and personal legacy.

“It speaks to a community that is not only generous, but increasingly ambitious in how it gives, combining influence, expertise and purpose to achieve outcomes at scale,” Keneally said.

Among the major supporters of this year’s event were Presenting Partner, John-Paul Nassif Foundation; Major Partners, ABC Bullion, Shaw and Partners Financial Services and One Circular Quay by Lendlease; and Premier Partner, Range Rover, whose ongoing support reflects a shared philosophy of legacy and long-term impact.

The evening also featured performances, premium hospitality experiences and fundraising initiatives designed to encourage further support for children’s health services and research.

LOOKING BEYOND NEW HOSPITALS

With major new children’s hospital developments at Randwick and Westmead progressing, Keneally said the focus is increasingly turning towards what comes next.

“The long-term vision is to ensure every child has access to world-leading healthcare, care that continues to evolve through innovation, research and global collaboration,” she said.

The foundation’s future priorities include accelerating medical discovery, expanding access to cutting-edge treatments and helping position New South Wales as a global leader in children’s health.

Keneally said the Gold Dinner remains central to achieving those ambitions because it does more than raise money.

“Gold Dinner is critical to making that vision possible. It not only provides significant funding, but also unites a powerful network of supporters who are driving the future of philanthropy in Australia,” she said.

As Australia’s culture of philanthropy continues to mature, Keneally believes that the network will play an increasingly important role in shaping the future of healthcare for generations to come.

“The result is a community that is helping to shape the future of paediatric care, not just for today’s patients, but for generations to come.”

American Cities Are Starting to Thrive Again. Just Not Near Office Buildings.

Neighbourhoods are benefiting from remote work

Sydney Children’s Hospitals Foundation CEO Kristina Keneally says Australia’s culture of large-scale philanthropy is becoming more sophisticated as Gold Dinner raises $75.5 million for children’s health, research and innovation.

A NEW ERA OF PHILANTHROPY

WHERE THE MONEY GOES

BUSINESS LEADERS BACKING CHANGE

LOOKING BEYOND NEW HOSPITALS