Mary Kaltenberg

EconHack 2026 — 6th Annual

6th Annual Pace University EconHack. October 22 & 23, 2026. Co-hosted with Economics Society and Women in Economics.

Special thanks to Ava Lafferty, Marcus Milicevic, and Daniella Vaynshteyn. Special thanks to the judges: Kier Hanratty, Veronika Dolar, Greg Colman, and Aina Puig.

The Problem: The Decline of Third Spaces

In recent years, third spaces have been declining across the United States. Many local spots such as diners, cafés, and bars that once served as community gathering places have closed or been replaced by chain businesses. The third spaces that remain often require a purchase to stay, which creates a cost barrier for young people. Free third spaces such as parks and libraries do exist; however, they are often far from residential areas and difficult to reach without a car or reliable public transportation. The COVID-19 pandemic and the rise of social media have also made it easier for young people to stay home rather than seek social engagement in public places. Americans now spend less time socializing in person, and the decline is strongest among 15–24-year-olds. The Bureau of Labor Statistics’ American Time Use Survey shows 15–24-year-olds went from about 61 minutes a day of face-to-face socializing in 2003 to about 35 in 2025. As a result, the decline of third spaces contributes to rising loneliness, weaker social trust, and less engagement with the community.

Propose a novel policy intervention that addresses at least two policy objectives and utilize relevant data sources with graphs, tables, or regressions.

Policy Objectives

Propose a policy intervention that addresses at least two of the following policy objectives and uses relevant data sources with graphs, tables, or regressions.

Requirements

Context

While we are in an ever-connected online world through social media, 67% of American adults feel social and emotional loneliness (Making Caring Common Report). This effect has been exacerbated by COVID-19 stay-at-home orders that restructured the way we work and the way we interact. Connection was made despite social distancing measures by increased Zoom calls for work, online parties with friends, and open-air activities, but in-person intimate dinner parties, coffee shop chats, and water-cooler discussions at work disappeared. While the world has re-emerged from these measures, the compounded effect of an ever-present social media avatar and the always-on connectivity of our phones has stuck in our social interactions and consequently, our spaces.

Over the past two decades, there has been a concerning rise in social isolation and loneliness. U.S. Surgeon General Vivek Murthy called it an Epidemic of Loneliness and Isolation and issued a 2023 advisory declaring loneliness a public health crisis. Loneliness among young adults increased every year between 1976 and 2019, and social isolation increases the risk of premature death by 29% (report).

This epidemic of loneliness has been experienced by all generations. Children who lived through COVID-19 at young ages had to re-learn or learn how to make connections “IRL”, how to form new friends in unfamiliar environments, and how to build habits of connection. Studies have found young adults have decreased their time spent with friends substantially — from 12.8 hours a week in 2010 to around 5.1 hours in 2024 — with the largest drop during the COVID-19 era that remains exceedingly low.

Hours per week spent with friends, adults 18–29. Source: [Family Studies](https://ifstudies.org/insights?id=3619), American Time Use Survey via IPUMS.
Hours per week spent with friends, adults 18–29. Source: Family Studies, American Time Use Survey via IPUMS.

Older adults also experience a drop in social connection heightened by potentially limited mobility and ability to travel. In 2023, a national poll reported that about 37% of older US adults (aged 50–80 years) experienced loneliness and 34% reported feeling socially isolated (report here).

Research has linked social isolation and loneliness to higher risks for a variety of physical and mental conditions: high blood pressure, heart disease, obesity, a weakened immune system, anxiety, depression, cognitive decline, and Alzheimer’s disease. Surgeon General Vivek Murthy calls loneliness “an underappreciated public health crisis that has harmed individual and societal health.”

With higher rates of physical and mental health conditions, this reverberates into our economy with productivity loss, increased health costs and strains on our healthcare system and decreased (or missed potential) entrepreneurship starbucks and innovation. In addition, social isolation can break down trust and social cohesiveness in communities (childhood development & social cohesion).

It is no surprise that the world is craving these third spaces, from teenagers to adults. Thus, policy makers are looking at ways to make substantial public investment to prevent and reduce loneliness and social isolation. This includes interventions to support at-risk individuals as well as population-wide efforts to enhance social connections at a community level. One way forward is to increase “third spaces,” a term coined by Oldenburg, which are “physical locations outside of the home (first place) or workplace (second place) that facilitate social interaction, community building, and social support” (Closure of ‘Third Places’ paper?).

What is a third space?

A third space is a social environment that is separate from home (first spaces) and school or work (second spaces). What makes third spaces unique is that they facilitate social engagement without needing an invitation to participate or an obligation to stay. They are also free or low cost.

Third spaces are accommodating, welcoming, and don’t engage with social hierarchies. All members, from new to regulars, are welcomed. These spaces help provide a sense of community and comfort. Some examples include: cafes, bookstores, libraries, and community centers. Explainer

Importance of third spaces

Third spaces allow individuals to build social connections and be a part of a community. In these spaces, all are welcome, and there is no cost to participate. Social connection is important for overall wellbeing; it is not an exclusive privilege; it is a basic social need.

Belonging to a community and having access to social engagement has many positive effects. Firstly, it is known to reduce mental health issues such as depression and anxiety. For younger adults, this is a place to make new friends and discover new interests to promote growth and learning experiences. For older adults, developing additional third spaces requires thinking about pedestrian infrastructure, safety, access to facilities, and rest areas.

Data

2026 Winners

Results will be posted after the event.