The negative impact of Buffalo Niagara’s declining population on business

The Buffalo Niagara region is facing a population decline, with new estimates from the U.S. Census Bureau showing a drop of nearly 11,300 people from 2020 to 2023. This decrease is in stark contrast to the national trend of population growth, which has increased by 1% during the same period.

The implications of this population decline are significant for the region’s businesses. A shrinking population means a smaller economic pie, making it challenging for businesses to grow without stealing customers from competitors or expanding outside the region. This trend is a setback for an area that had seen some growth in the 2010s after decades of population decline.

Immigrants have been a key source of population growth in the region, but the pandemic disrupted this trend, leading to a loss of nearly 5,700 people who moved away from Erie and Niagara counties. The aging population is also a factor, with older residents leaving faster than new births can replace them.

To reverse this trend, experts suggest focusing on attracting immigrants and creating job opportunities to retain young people in the region. While Erie County has seen some population growth in certain municipalities, Niagara County is down 3% from its 2010 level, highlighting the need for proactive measures to address the population decline.

Overall, the new population estimates indicate a concerning trend for the Buffalo Niagara region, emphasizing the importance of developing a strategy to attract and retain residents to support economic growth and vitality in the area.