Millionaires are flocking back to New York City, as residents earning under $172,000 flee

Millionaires are flocking back to New York City, as residents earning under $172,000 flee, per BI.

Read full article: https://www.msn.com/en-ca/money/markets/millionaires-are-flocking-back-to-new-york-city-as-people-making-less-than-172-000-move-out/ar-AA1l4V6z


A recent report by the nonprofit Fiscal Policy Institute contradicts the notion that New York City was on the decline, particularly for millionaires. Despite a loss of 2,400 millionaires from 2020 to 2022, the city witnessed an influx of 17,500 millionaires during the same period, according to the analysis of ACS data.

Conversely, lower-income New Yorkers appeared to be opting out of the city. The report indicates that New Yorkers earning between $32,000 and $65,000 were the most likely to leave, with over 65,000 individuals from this income bracket migrating between 2017 and 2022. In contrast, just over 50,000 New Yorkers earning over $172,000 made a similar move. Overall, nearly 200,000 New Yorkers earning under $172,000 left the city during this five-year span.

This trend aligns with the trajectory of New York's economic recovery. Initially, the city faced challenges during the early stages of the pandemic, leading to numerous reports about people leaving. High earners, capable of remote work, began to relocate, causing rents to drop. Workers earning under $50,000 experienced a 7.4% increase in adjusted gross incomes, as reported by the New York City comptroller's office.

However, the situation shifted, especially for those who weren't among the highest earners. Rents began to rise again, approaching record highs, with the median rental price in Manhattan increasing by 4.6% year-over-year as of October 2023. Affording childcare in the city required a family income of around $300,000, far exceeding the median household income of $74,694 reported by the Census Bureau.

In essence, the changing economic landscape prompted the middle class to leave New York City, while millionaires continued to move in.

Danna Dennis, a community organizer who relocated from Brooklyn to New Jersey in 2019, described this demographic as the "'make too much, but not enough' group," emphasizing the challenge of navigating the city's economic extremes. The wealth gap among New Yorkers increased in 2021, with data from the New York City comptroller's office revealing that those earning between $1 million and $25 million experienced a 21.3% rise in adjusted gross incomes from 2020 to 2021, while those making over $25 million saw an 84.5% growth.