NYC’s Central Business District largely performing in-line with region despite congestion pricing

NY Central Business District spending is in-line with the nation, region

New York City’s congestion pricing program began January 5, 2025. The increase immediately drove an increase in EZ-Pass sales (see data in Dash). Since then, in-store consumer spending at major brands across 36 consumer categories has performed similarly to the larger region. More recently, spending in the Central Business District outperformed. Spending in the Central Business District underperformed the NYC CBSA (metro area) 2 of the past 11 weeks and underperformed the broader nation 4 of the past 11 weeks.

Spending for the week ended March 22 in the Central Business District ZIP Codes grew 16% compared to January 11. This is 5 points higher than spending in the same categories nationally and in New York State. It is also 10 points higher than spending in the broader NYC metro area.

Restaurant spending outperforming post congestion pricing

The magnitude of outperformance has grown in recent weeks, which has yet to reach major seasonal peaks during late spring and early summer.

Restaurant spending has been one of the strongest performance categories so far despite a slow start in early February. Consumer spending at QSR, fast casual, casual dining, fine dining, and delivery grew 24% from the week of January 11 to March 22. That is a small outperformance vs national trends, but a larger one compared to the region.

New York State grew 20% in the same time, compared to the tri-state metro area growing only 12%. The Central Business District outperformed state and local trends in most weeks since congestion pricing was implemented.

Apparel and department stores underperform nation, in-line with region

National apparel and department store spending is up 27% compared to the week ended January 11. However spending on those categories in the tri-state region is not as strong. New York State’s department and apparel spending grew 21% in the same period, while the NYC metro region grew 18% and the Central Business District grew 12%.

Over those 11 weeks, in-store spending at department and apparel stores in the Central Business District vacillated from in-line to slightly below the broader region.