Sleeping at the office

The shift to hybrid work schedules has materially reduced the amount of office space many companies require, particularly in big cities. More than three years after the pandemic sent all but essential workers home, office attendance has settled at 30% below pre-pandemic trends. As a result, McKinsey estimates that the median demand for office space in large cities has declined by 13%. At the same time, in most large metropolitan areas there is a shortage of residential housing. However, according to McKinsey, even if all vacant office buildings were converted into residences, the available housing stock would increase by less than 3% in most large cities.

Source: McKinsey, August 2023