Yep, more subways should do the trick. Include NJ so we need fewer buses to Manhattan. Tear down the bus station and put a smaller one in NJ; you'll get back two city blocks.

If you really want to push the limits, throw in low-speed maglev so reduce rush hour commute time:

http://www.china.org.cn/business/2016-11/01/content_39610565...

Something that travels at 100mph would allow much farther commutes to Manhattan.