San Francisco Ranks Dead Last in Downtown Recovery After The Pandemic, With Just 32% Of Its Foot Traffic Returning

San Francisco has recovered just 32% of its downtown foot traffic since the start of the pandemic—dead last on a list of more than 60 major North American cities.

The ranking, which was compiled based on anonymized cell phone data analyzed by the University of Toronto, comes as San Francisco has struggled with a large population of homeless people and drug users downtown—along with tech workers reluctant to return to their offices.

Portland, which has similar problems, also ranked low on the list—with just 36% of people returning.

In San Francisco, many employees have chosen to work exclusively from home — or visit an office only once or twice a week.

Skyrocketing housing prices, meanwhile, have driven workers further outside the city. The cost of living is about 79% higher than the national average.

The owner of San Francisco's biggest hotel was forced to walk away in June due to overwhelming debt, while dozens of downtown retailers have closed since 2020.

San Francisco's Westfield Mall, which opened in 2006 with an ornate, glittering rotunda, now sits only half occupied. The city's mayor, London Breed, suggested in July converting abandoned stores and malls into soccer stadiums or lab spaces.

Cleveland, Minneapolis and Indianapolis are also struggling to lure people back downtown, with all registering less than 50% of their pre-pandemic foot traffic levels.

New York has only recovered about 67% of its foot traffic, and Los Angeles just 63% of its unique visitors.

Meanwhile, several downtowns are now receiving more foot traffic than before the pandemic. For every 100 people Salt Lake City saw prior to the COVID-19 pandemic, the city now sees about 139 — helped in part by an increase in population and a solid economy.

Bakersfield, California; Fresno, California; and El Paso, Texas also see more unique visitors than in 2019.

Still, cell phone data isn't a perfect metric because it can't distinguish between travelers, workers and local residents, Karen Chapple, director of the School of Cities and at the University of Toronto, told Axios.

Analysts say the key to a thriving downtown is having a large mix of features, including housing, offices, hotels, and attractions.

Some cities have recognized that employees are unlikely to return to office buildings at pre-pandemic levels and have changed developers' incentives accordingly. Boston, for instance, will offer up to 75% in tax cuts to landlords who turn vacant offices into new housing.

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