Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
Brandon Donnelly
Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.
It has now been almost a year since New York City implemented its congestion charge for the area of Manhattan south of 60th Street and, despite all of the critics, the results are overwhelmingly positive. Here are some of the most important data points:
Pollution is down by as much as 22% in the congestion zone area.
Traffic has declined by about 11% in the zone. As a reminder, traffic improved basically immediately following the $9 charge.
An average of 71,500 fewer vehicles entered the zone each day from January through to November 2025, totalling nearly 24 million fewer vehicles.
The congestion charge is forecasted to bring in $548.3 million in 2025, beating the initial goal of $500 million. (This revenue will be used by the MTA for bond issuances that will in turn fund further infrastructure improvements.)
Importantly, foot traffic in the zone is also up year-over-year compared to Manhattan as a whole (3.5% versus 1.4%, respectively).
Storefront vacancies in the zone declined more rapidly compared to Manhattan as a whole and the rest of the city. (Though the vacancy rate is still the highest in this area, presumably because of the higher rents in downtown and midtown.)
New York City's sales tax revenue is also up 6.3% this year compared to the same period last year, outperforming all neighboring counties. This suggests that the congestion charge is not keeping shoppers away.
So, why shouldn't other North American cities follow New York's lead?
Cover photo by ian dooley on Unsplash

When it comes to cities, quality of life is a subjective measure. Some people may prefer a small city where homes are more affordable and commute times are negligible, while others may find the unique amenities of a big city more appealing — enough to outweigh the negatives.
Whatever the exact case, there are some obvious negatives that come with urban scale. The usual suspects are high housing costs, traffic congestion, noise and pollution, crime and safety concerns, and the list goes on. But is it universally true that quality of life has to decline as a city grows?
I don't think so at all. I wasn't able to find a good primary source on this topic, but the obvious example and outlier that comes to mind is Tokyo. It is both the largest metropolitan area in the world and a city that consistently ranks near the top of most quality of life indices.
So how do they do it?
There are lots of ingredients that go into a city like Tokyo, but I would argue that one of if not its most important, is its transit network. Tokyo has one of the highest rail modal splits and one of the lowest driving rates in the world. And it's the only way a city of this scale could actually function as efficiently as it does.
This is not me being an ideologue (which I am sometimes called); it is me being a pragmatist. Show me a big global city with more than 10 million people that is oriented around the car and does not have a traffic congestion problem, and I'll happily change my mind.
Cover photo by Leongsan on

Here's a new opinion piece from the Globe and Mail talking about the importance of "early wins" when it comes to building better cities. And whoever wrote it is right.
One of the examples that is given is New York's congestion pricing program. We've talked a lot about this initiative since the beginning of the year, and one of its important features is that it pretty much started working immediately.
Travel times, in some cases, dropped by as much as 48% and, in the first two months of its operation, it brought in over $100 million of new revenue for the city. Less congestion and more money. That's what congestion pricing does.
Because of this, support for the program has risen. In December 2024, which is before the pricing went into effect, some polls suggested that around 51% of New Yorkers were opposed to the charge.
But by March 2025, more New York City residents seemed to support the program than oppose it. And again, this is almost certainly because its positive effects were felt right away.
City building doesn't always work this quickly. Many or most things take too long. But finding ways to post early wins is good practice. It also provides a quick feedback loop just in case things need to be changed.
Cover photo by Murat Onder on
It has now been almost a year since New York City implemented its congestion charge for the area of Manhattan south of 60th Street and, despite all of the critics, the results are overwhelmingly positive. Here are some of the most important data points:
Pollution is down by as much as 22% in the congestion zone area.
Traffic has declined by about 11% in the zone. As a reminder, traffic improved basically immediately following the $9 charge.
An average of 71,500 fewer vehicles entered the zone each day from January through to November 2025, totalling nearly 24 million fewer vehicles.
The congestion charge is forecasted to bring in $548.3 million in 2025, beating the initial goal of $500 million. (This revenue will be used by the MTA for bond issuances that will in turn fund further infrastructure improvements.)
Importantly, foot traffic in the zone is also up year-over-year compared to Manhattan as a whole (3.5% versus 1.4%, respectively).
Storefront vacancies in the zone declined more rapidly compared to Manhattan as a whole and the rest of the city. (Though the vacancy rate is still the highest in this area, presumably because of the higher rents in downtown and midtown.)
New York City's sales tax revenue is also up 6.3% this year compared to the same period last year, outperforming all neighboring counties. This suggests that the congestion charge is not keeping shoppers away.
So, why shouldn't other North American cities follow New York's lead?
Cover photo by ian dooley on Unsplash

When it comes to cities, quality of life is a subjective measure. Some people may prefer a small city where homes are more affordable and commute times are negligible, while others may find the unique amenities of a big city more appealing — enough to outweigh the negatives.
Whatever the exact case, there are some obvious negatives that come with urban scale. The usual suspects are high housing costs, traffic congestion, noise and pollution, crime and safety concerns, and the list goes on. But is it universally true that quality of life has to decline as a city grows?
I don't think so at all. I wasn't able to find a good primary source on this topic, but the obvious example and outlier that comes to mind is Tokyo. It is both the largest metropolitan area in the world and a city that consistently ranks near the top of most quality of life indices.
So how do they do it?
There are lots of ingredients that go into a city like Tokyo, but I would argue that one of if not its most important, is its transit network. Tokyo has one of the highest rail modal splits and one of the lowest driving rates in the world. And it's the only way a city of this scale could actually function as efficiently as it does.
This is not me being an ideologue (which I am sometimes called); it is me being a pragmatist. Show me a big global city with more than 10 million people that is oriented around the car and does not have a traffic congestion problem, and I'll happily change my mind.
Cover photo by Leongsan on

Here's a new opinion piece from the Globe and Mail talking about the importance of "early wins" when it comes to building better cities. And whoever wrote it is right.
One of the examples that is given is New York's congestion pricing program. We've talked a lot about this initiative since the beginning of the year, and one of its important features is that it pretty much started working immediately.
Travel times, in some cases, dropped by as much as 48% and, in the first two months of its operation, it brought in over $100 million of new revenue for the city. Less congestion and more money. That's what congestion pricing does.
Because of this, support for the program has risen. In December 2024, which is before the pricing went into effect, some polls suggested that around 51% of New Yorkers were opposed to the charge.
But by March 2025, more New York City residents seemed to support the program than oppose it. And again, this is almost certainly because its positive effects were felt right away.
City building doesn't always work this quickly. Many or most things take too long. But finding ways to post early wins is good practice. It also provides a quick feedback loop just in case things need to be changed.
Cover photo by Murat Onder on
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