Some extremely worrisome data has recently emerged providing a glimpse into the economic downfall of the real estate market in New York during the coronavirus pandemic.
The New York Post published a report detailing how New Yorkers are fleeing NYC in vast numbers. According to data from the United States Postal Service, more than 300,000 NYC residents have moved out of the Big Apple since the COVID-19 pandemic.
The Post found that 295,103 New Yorkers filed change of address requests from March 1 to Oct. 31. However, the total amount is well over 300,000 once you consider that a single change of address would likely include numerous multiple-person households.
From March through July, there were 244,895 change of address requests to locations outside of New York City, more than double the 101,342 during the same period in 2019.
The postal data shows residents are moving out of the city, but staying in the tri-state area. The top five destinations are: East Hampton, N.Y., (2,769), Jersey City, N.J. (1,821), Southampton, N.Y. (1,398), Hoboken, N.J. (1,204), and Sag Harbor, NY (961). There were 558 people who moved to Greenwich, C.T.
The mass exodus could be derived from a number of reasons, including fear of living in a dense city during a pandemic, stringent COVID-19 restrictions set forth by Gov. Andrew Cuomo and Mayor Bill de Blasio, a summer that saw skyrocketing shootings, and the effects of a mandatory $15 minimum wage.
The lack of real estate sales and apartment rentals have contributed to a massive drop in tax revenue. The Real Estate Board of New York released a report last week that New York City and state have collectively lost $1.4 billion in tax revenue so far this year.
“Investment sales and residential sales year-to-date totaled $34.5 billion, a 50% decline compared to the same time period in 2019, causing a 39% decline in tax revenue,” the REBNY reported.
Civil unrest and violent riots plus high coronavirus death totals have hurt the city with tourism. New York City Comptroller Scott Stringer told Market Watch in July, “In the midst of the pandemic, we are beginning to realize that our 62 million [annual] tourists will no longer be in the short term.”