Relocations of Financial Firms During Pandemic
The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you consent to the use of cookies. 

Policy Backgrounders

CED’s Policy Backgrounders provide timely insights on prominent business and economic policy issues facing the nation.

Relocations of Financial Firms During Pandemic


August 22, 2023 | Brief

A new Bloomberg report finds that relocations of investment firms have moved $1 trillion in AUM out of New York and California since 2019, with the majority moving to Sun Belt states motivated primarily by a desire for lower taxes, lower cost of living, and warmer weather.

  • New York lost the headquarters of 158 investment firms, while Florida was the largest recipient with 104 headquarters and 56 coming from New York. Additionally, the creation or expansion of secondary offices outside of higher-cost cities presents a longer-term risk of continued outflows of high-income workers.
  • The economic impact on New York to-date appears less severe than anticipated, with employment in financial services recovering to pre-pandemic levels and tax revenues generally remaining strong through the pandemic.
  • Yet, challenges remain if growth in Sun Belt hubs continues to outpace that of New York and similar regions, particularly as uncertain demand for office real estate poses looming economic and fiscal risks.

AUTHORS

Dr. Lori Esposito Murray

Former President
Committee for Economic Development

MitchellBarnes

Senior Economic Policy Analyst
Committee for Economic Development, the public policy center of The Conference Board (CED)


More From This Series

Brief

Data Privacy Legislation

June 28, 2024

Brief

South Africa's Election

June 27, 2024

Brief

June 2024 CBO Budget and Economic Outlook

June 20, 2024

Brief

FERC Rules to Streamline Transmission Expansion

June 14, 2024

Brief

Mexico’s Election

June 06, 2024

Brief

Update on Global Minimum Tax

May 30, 2024

Charts

Preliminary November PMIs show no change in DM growth momentum

Preliminary PMI indices show no change in weak DM growth momentum in November

LEARN MORE Yellow and white frame illustration

Charts

Global Recession Map

Global Recession map

LEARN MORE Yellow and white frame illustration

Charts

How high will unemployment go? The US unemployment rate forecast

While a US recession appears to be imminent, it will not look like any other in recent history.

LEARN MORE Yellow and white frame illustration

Charts

Political and government stability top of mind for US CEOs

CEOs’ views of current and future economic conditions remain pessimistic as they prepare for near-inevitable US and EU recessions.

LEARN MORE Yellow and white frame illustration

Charts

Risks to US outlook are tilted to the downside

The US economy appears to be on the precipice of recession.

LEARN MORE Yellow and white frame illustration

Charts

US CEOs say they are preparing for a brief and shallow recession

Measure of CEO Confidence declined for the fifth consecutive quarter in Q3 2022 and has hit lows not seen since the start of the COVID-19 pandemic in 2020.

LEARN MORE Yellow and white frame illustration

Charts

LEI signals US on cusp of recession

LEI Signals US on Cusp of Recession

LEARN MORE Yellow and white frame illustration

Publications

Webcasts, Podcasts and Videos

Window on China: Outlook for 2024

January 25, 2024 09:00 AM CET (Brussels), 04:00 PM SGT (Singapore)

China's evolving data security regulatory framework

September 14, 2023 03:00 AM ET (New York), 09:00 AM CET (Brussels), 03:00 PM SGT (Singapore)

Press Releases / In the News

BRIEF

Inflation Heads in Wrong Direction for Fed

April 26, 2024

BRIEF

US Economic Growth Cooled in Q1 2024

April 25, 2024

PRESS RELEASE

US Leading Economic Index® (LEI) Fell in March

April 18, 2024

BRIEF

March retail sales rose, but real Q1 spending was lackluster

April 15, 2024

BRIEF

CPI remained stubbornly elevated in March

April 10, 2024

BRIEF

Employment Report Poses Some Risk to Fed Cut Timing

April 05, 2024

✕
hubCircleImage